Leasing, renting or buying company bikes
Business bikes are an ideal flexible income for your staff. Your employees will be fitter and more motivated, but there are also a lot of fiscal benefits, since all costs related to encouraging the bicycle for residential traffic are 120% tax deductible. Don’t you know whether to rent, lease or buy these bicycles? We’ll give you an overview below!
Enough cashflow? Consider a purchase
Business bikes can be bought immediately. The biggest advantage is that it’s usually the cheapest, since you won’t pay any interest. Also, you’ll immediately become the legal and economic owner of the bikes.
It’s also smart to take care of a maintenance contract, just to make sure your fleet stays in good condition. You have to depreciate the bikes over a 36-month period, which is the average life span of a bike.
A big advantage of Cycle Valley is the ability to do group purchases. Easy, right?
Lease or rent
When leasing bicycles, in fact we’re talking about long-term rental with a purchase option. This purchase option is valued for up to 15% of the purchase price (excluding VAT). As a lessee you are the economic owner of the bicycles and you are not required to disclose the purchase. The lessor remains the legal owner of the fleet.
Operating leases, or long-term rentals (36 or 48 months) are very similar. As with normal leases, your company’s solvency or credit capacity isn’t affected. The big difference in comparison to leasing is that you aren’t the economic or legal owner of the property. However, you have the right to use the fleet and there will be a purchase opportunity.
Renting has two advantages. One of them is the freedom. You can stop the contract whenever you want. Also, you can include the costs more quickly in your results.
Do you have a specific question or would you like some clarification? We’re here to answer your questions.