Disadvantages of leasing a bike
Leasing a bike is more popular than ever and has many benefits for both employees and the employer. Yet there are also some disadvantages, which we discuss in this article.
1. Termination fee when changing employer
The collaboration between you and your employer may come to an unexpected end, if you yourself resign or if you are dismissed. In both cases, the bicycle lease contract is terminated and a termination fee is (usually) payable. Here are some possible scenarios:
- You resign: if you take over the bike, you don't have to pay the termination fee. If you do not take over the bike, you will pay a termination fee.
- You are fired: the employer pays the termination fee.
At Cyclobility, we deliberately keep the termination fee as low as possible and only charge the cost of collection and the cost of selling the bike second-hand, which totals 20% of 12 months' rent.
2. You do not own the bike
During the lease term you do not own the bike; it remains the property of the leasing company. After the lease term, you do have the option of taking over the bike at 16% of the recommended retail price.
Do you want to own an electric bike or speed pedelec and wish to pay it off gradually? Then our interest-free bike loan could be a good alternative for you. It effectively enables you to buy a bike in instalments at no extra cost, and allows us to offer the cheapest bike loan in Belgium.
Let’s say you want to buy a € 5000 bike. At Cyclobility you can pay it off over 36 months, paying monthly instalments of €138.89. After 36 months, your bike still effectively cost you € 5000. In total, this saves you € 304.82 in interest (savings calculated based on the current 3.99% interest rate).
Calculate your bike loan:
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Start your application for the cheapest bike loan here
Schedule appointment in shop
(*) savings calculated based on current interest rate of ${ (settings.jkp * 100).toFixed(2) }%. It is only possible to take out a loan if the bicycle is purchased in a Cyclobility store and it cannot be combined with other promotions..3. Minor impact on your pension
Your pension is calculated based on the gross salary you earn at the end of your career. If you choose to lease a bike through your employer through a monthly gross salary exchange, of course your gross salary will be slightly lower.
Fortunately, leasing a bike for most of your career actually has a very limited impact on your retirement. For higher salary employees, the pension calculation is in fact capped and bike leasing does not impact your pension at all.
From this, we can conclude that the adverse impact of bike leasing via gross salary exchanges on your pension is limited. The benefits outweigh the drawbacks. Especially when you consider the net benefit you gain over a private purchase. Leasing a bike ends up costing you significantly less money. Bike leasing can save you up to 50%.
Benefits of leasing a bike
Are you still in doubt about bike leasing? Then be sure to read our article on the many benefits of bike leasing for both employees and employers. The biggest advantage is undoubtedly that it is tax-friendly for the employee and budget-neutral for the employer. In addition, bike leasing also has a huge impact on the environment and your health.
