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Company Bike Leasing in Austria

Company Bike Leasing in Austria

21.08.23 08:39 101Text: NoPain (translated by AI)Photos: Erwin HaidenSecure up to 36% savings on the price with a company bike leasing compared to a cash purchase. Here's how it works at MVC Radfabrik with the providers "Lease a Bike" or "Jobrad".21.08.23 08:39 124

Company Bike Leasing in Austria

21.08.23 08:39 124 NoPain (translated by AI) Erwin Haiden
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Secure up to 36% savings on the price with a company bike leasing compared to a cash purchase. Here's how it works at MVC Radfabrik with the providers "Lease a Bike" or "Jobrad".21.08.23 08:39 124

Increasing Popularity of E-Bikes and Company Bikes

In 2022, bicycle sales numbers in Austria could be increased once again. The bicycle industry sold 506,159 bicycles to the Austrian sports and bicycle retail trade - the turnover was around 1.39 billion euros (+ 35.6%) - and with the sale of accessories and spare parts an additional 200 million euros were earned. The reason for the strong increase in revenue was clearly the E-Bike sales with a total number of 246,728 E-Bikes, which corresponds to a market share of 49 percent and a revenue share of 74 percent.

Company bicycle models as revenue drivers
Thanks to the tax benefits for company bicycle models, Austrians are increasingly opting for higher-priced E-Bikes with extensive equipment. "A look at Germany, where company bicycles are already much more widespread, reveals to us that the potential at specialist retailers is immensely larger. With the right promotional measures and an expansion of cycling infrastructure, even more layers of the population in Austria can discover cycling for themselves", says Hans-Jürgen Schoder, spokesperson for ARGE Fahrrad and CEO of Thalinger Lange.

Reason enough for Bikeboard to dedicate a cover story to the topic "Company Bike Leasing in Austria". Below you will find an overview of all the advantages and disadvantages, some calculation examples, and information on the processing.

 Every second bicycle sold in Austria is an e-bike. 

VSSÖ Bicycle Sales Figures 2022
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  • Company Bike Leasing in AustriaCompany Bike Leasing in Austria

Company Bike Leasing: Pros and Cons

The history of "Company Bike Leasing in Austria" is a history full of misunderstandings. Although since the tax reform of January 1, 2020, company bike leasing in Austria is not only equally interesting for employers, employees, and self-employed individuals and company bicycles are now clearly deductible for VAT for the employer and thus absolutely cost-neutral, many users are still deterred by the supposed bureaucratic hurdles.

Thus, leasing for private customers is commonly considered expensive, and applications for mobility funding as well as terms like "salary conversion," "assessment basis," and "benefit in kind" sound complicated and deter ordinary people. Moreover, the quick back-of-the-envelope calculation (monthly rate * 48) + residual value compared to the discounted list price does not look particularly attractive.

 Such prejudices are simply wrong. 

These assumptions are incorrect, as in the case of company bike leasing, similar positive tax effects come into play for private individuals, which normally only business customers benefit from. Moreover, no additional costs arise - not even for the employer - and the "feared" processing can be comfortably managed through specialized partners. All in all, the private user can save up to 36% of the purchase costs in the best-case scenario - with installment payments over 48 months, mind you.

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  • Company Bike Leasing in AustriaCompany Bike Leasing in Austria
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Company Bike Leasing: Pros and Cons

Employee Employer
Benefits
  • Free choice of bicycle type and brand
  • Avoid traffic jams, save on parking fees, both professionally & privately (no fringe benefits tax, no logbook)
  • Tax advantage: The gross income is reduced by the conversion rate
  • Up to 36% savings compared to buying
  • Comprehensive protection is always included (!)*
  • Service bicycle can be purchased inexpensively after 36 or 48 months
  • Healthier employees
  • Contribution to green mobility
  • 100% cost-neutral, no fees
  • Reduction of payroll taxes
  • Usage contribution is directly deducted from the employee's monthly net salary
  • Possible savings on car and parking fees
  • Low administrative effort
  • Popular employee benefit
  • Additional subsidies possible individually

Disadvantages
  • Comprehensive protection is mandatory
  • Leasing condition: Employee must earn at least the leasing rate as collective agreement overpayment
  • Possible administrative effort after any interruption of continued salary payment during prolonged illness-related absence, parental leave, early termination, or other possible reasons

* Depending on the leasing package: Through MVC Radfabrik, a wear and tear package from 100 euros to 300 euros per year, theft and damage protection as well as a mobility guarantee without deductible is included.

The main reason for the high savings potential for the employee despite many benefits (payment by installments, comprehensive protection, etc.) is the tax advantage. In addition to the company's mobility promotion and, if applicable, e-bike subsidies, the gross income is also reduced by the conversion rate - which in total, depending on the leasing duration and gross salary, can result in savings of up to 36% compared to the purchase price. Moreover, the employee is allowed to use the e-bike for all professional and private journeys, is exempt from fringe benefits tax, does not need to maintain a logbook, and does not miss out on any possible commuter allowance.

On the other hand, the employer also benefits from service bicycle leasing. Service bicycles keep employees fit, save on car and parking fees, and protect the environment. Furthermore, a company-supported bicycle is absolutely cost-neutral and involves no hidden fees. Private or public employers can offer their employees a highly sought-after benefit, and self-employed individuals, freelancers, or sole proprietors can even benefit themselves. In addition, the employer also saves on payroll taxes due to the reduced gross salary.

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Leasing Calculator Examples

As mentioned several times before, bicycle and e-bike leasing can be up to 36% cheaper than buying privately. However, the respective monthly leasing rate is just as individual as the bicycle wish (brand, model, color, size) and depends not only on the purchase price, the all-round protection package, and the leasing duration but also on one's own monthly gross salary.

To give you a few practical examples, we have calculated three bikes from the MVC Radfabrik with the Lease-a-bike.at leasing calculator over 48 months, taking into account a gross monthly income of 3,000 euros as well as the all-round protection basic package.

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  • Company Bike Leasing in AustriaCompany Bike Leasing in Austria

Fully Mountain Bike Haibike AllMtn CF 6 Review

Are you looking for a sporty eFully with high-quality components for loads of fun on the trail? Then the new Haibike All Mountain CF 6 is your first choice! With its lightweight full carbon frame, the powerful Yamaha PW-X2 motor and 600 Wh battery, as well as a progressive geometry, this eMTB offers you pure trail e-performance without any compromises.

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Calculation Example: E-Fully (E-Full Suspension Bike)

Haibike All Mountain CF 6 Fully
LEASING WITH STARTER PACKAGE * LEASING WITHOUT STARTER PACKAGE
€88.26 monthly ** €86.17 monthly
Original price: €6,049 Original price: €5,899
Difference to cash purchase: €2,382.76 (32.33% savings)
Leasing duration: 48 months, residual value €750

* The starter package includes a MET Crossover bicycle helmet and XLC accessories (chain oil, bell, mini pump, bicycle lock, water bottle, and multitool).
** The leasing price was calculated with a monthly gross salary of €3,000. The monthly leasing rate includes a wear and tear budget of €100 per year, theft and damage protection, as well as a mobility guarantee.

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Trekking Bike La Pierre E-Explorer 6.5 LS

The E-Explorer LS is a step-through with electric assistance, fenders, and a rack designed for everyday mobility.

Sample Calculation: Trekking Bike

La Pierre E-Explorer 6.5
LEASING WITH STARTER PACKAGE * LEASING WITHOUT STARTER PACKAGE
€ 57.60 monthly ** € 55.41 monthly
New price: € 3,849,- New price: € 3,699,-
Difference to cash purchase: € 1,591.66 (32.93% savings)
Leasing duration: 48 months, residual value € 477,-

* The starter package includes a MET Crossover bicycle helmet and XLC accessories (chain oil, bell, mini pump, bicycle lock, water bottle, and multitool).
** The leasing price was calculated with a monthly gross salary of € 3,000,-. The monthly leasing rate includes a wear budget of € 100,- per year, theft and damage protection, as well as a mobility guarantee.

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Cargo Bike Winora F.U.B. 2W

The Winora F.U.B. 2W is a Family Utility Bike with electric drive, transports a total weight of up to 200 kg maximum, and offers plenty of space and comfort for mom or dad and up to two kids. The comfortable box made of eco-friendly hard foam is shock-absorbing and equipped with side impact protection.

Sample Calculation: City Urban Bike

Winora F.U.B. 2W
LEASING WITH STARTER PACKAGE * LEASING WITHOUT STARTER PACKAGE
€ 79.90 monthly ** € 77.81 monthly
New price: € 5,449,- New price: € 5,299,-
Difference to cash purchase: € 2,167,- (32.45% savings)
Leasing duration: 48 months, residual value € 676,-

* The starter package includes a MET Crossover bicycle helmet and XLC accessories (chain oil, bell, mini pump, bicycle lock, water bottle, and multitool).
** The leasing price was calculated with a monthly gross salary of € 3,000,-. The monthly leasing rate includes a wear and tear budget of € 100,- per year, theft and damage protection, as well as a mobility guarantee.

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Interview with Christian Juranitsch, Shop Manager at MVC Radfabrik

How does the bike get to the employee or into the company?
The process is handled through MVC Radfabrik. All incurred costs are borne by the employee using the bike. There are no costs for the company! The fleet manager/bike officer or owner of the company decides which of their employees is eligible for a company bike. A usage contract is concluded with the employee regarding the monthly remuneration as well as scenarios for leaving the company, etc., and the costs are also borne by the employee, although support from the employer is possible. The duration of use can be freely chosen between 36 and 48 months, after which the bike can be purchased for a fixed residual value.

What is included in the MVC leasing models?
During the term, MVC Radfabrik takes care of maintaining the e-bike in good condition. Optionally, it can also be picked up, stored during the cold winter months, and prepared fresh for the new season. During the term, a wear and tear budget ranging from 100 to 300 euros per year, theft and damage protection, as well as a mobility guarantee are included. After the leasing period, the employee has the option to buy the e-bike for a small residual value.

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How does the billing and invoicing work with the employee?
The agreed usage fee is directly deducted from the employee's monthly net salary - with one single condition: The employee must earn at least the lease rate as a collective contract overpayment, otherwise leasing is not possible!

Do you have any practical tips for motivated employees on how to convince their employer?
I would explain the approximate benefits to the boss (no cost risk, saving on payroll costs, win-win for both sides, etc.) and then get them in contact with us. If interested, the experts from MVC Radfabrik and our partners (Lease-a-Bike or Jobrad) will step in and create a tailor-made offer.

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About the MVC Bike Factory in 1140 Vienna

With a total of four locations in Vienna and the surrounding area, MVC Motors GmbH is not only the largest Ford dealer in Austria, but also a well-known new and used car dealer including a (Pickerl-)workshop for brands such as Volvo, Nissan, Alfa Romeo, Fiat, Jeep, and Peugeot. Since February of this year, the "MVC Radfabrik" in the 14th district also offers an alternative mobility concept, where, in addition to the classic bicycle trade and service, bike leasing of branded bicycles (keyword: company bike leasing) including consultation and tax processing for both the employer and the employee is offered.

What to Expect at the MVC Bike Factory

  • More than 200 readily available e-bikes from brands like Haibike, Lapierre, Winora
  • A large selection of accessories from XLC, ABUS, Castelli & Co.
  • First-class advice for purchasing e-bikes or accessories
  • Company bike leasing with "Lease a Bike" or "Jobrad"
  • High-quality bicycle service
  • Optional pick-up and delivery service
  • Storage during the winter months, with optional spring service

  • Company Bike Leasing in Austria

In 4 Steps: Company Bike Leasing for Employees

1. Convince Your Employer
Talk to your employer and send them the link to the Bikeboard story. For further detailed questions, MVC Radfabrik will support you and your employer in all matters related to e-bike & bicycle leasing.

2. Get in Touch with MVC Radfabrik
After your employer's consent, you can commission MVC Radfabrik with the service bike leasing for employees, which will take care of the paperwork for you.

3. Choose Your Desired Bike
Select your desired bike online or at MVC Radfabrik. In principle, any brand and any type of bicycle is possible.

4. Rock'n'Roll
You enter into a contract for the use of the bike with your employer. The term is 36 or 48 months. If desired, MVC Radfabrik offers you the service bike at the end of the contract period at a low cost.

 Buy a bike, Rent a bike, Fix a bike! 

The slogan of the MVC bicycle factory
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