Purchasing a Leased Bike at the End of the Lease Term

The Leased Bike Purchase: What happens at the end of the lease term and in the event of early termination 

Are you interested in bike leasing and would like to know in advance what happens when the lease term ends? Don’t worry: You can option to of leased bikes is clearly clearly defined, and in the end, the choice is always yours. Even before the 36 months are up, you decide for yourself whether you want to keep your company bike and purchase it at residual value, return it, or lease a new bike. 

eurorad will get in touch with you in a timely manner, explain your options, and guide you through the entire process. It’s no wonder, then, that about 86% of lease users opt for purchase their leased bikes . In this guide, you’ll learn exactly how the process works and what the purchase costs, and what happens if you end the bike lease early or change jobs. 

What Happens When the Lease Term Ends: Timeline and Deadlines 

The standard lease term for leased bicycles and e-bikes is 36 months at eurorad. Your contract ends automatically and will not be automatically renewed—so you’ll need to take action. 

To make sure you don't accidentally miss anything, eurorad will contact you well in advance: 

• 12 weeks before the end of the term you’ll receive an email asking if you’d like to keep or return it. 

• No later than 4 weeks before the end of the term, you must actively notify us via the link in the email if you want to leased bike for a portion of the residual value . 

• If you don't respond, your bike or e-bike will automatically be return after the lease . The pickup and resale process then begins immediately—at this point, it is no longer possible to decide later to purchase the bike. 

So it's best to mark the deadlines right in your calendar as soon as you receive the first email. 

Your timeline for taking over a bike lease at a glance 

Here's how to return your leased bike:

If you decide not to buy it, there are two options: 

• If your dealer accepts the leased return, you can drop off the bike right there. 

• If that's not the case, eurorad will pick up the bike from your home or your workplace. 

For you, this means the same thing in both cases: You don't have to worry about a thing— no paperwork, no stress. 

Buying Leased Bikes at the End of the Lease Term: How Much Does It Cost to Purchase Them? 

After three years , your leased bike —whether it’s a classic bicycle or e-bike – or even a residual value of about 40 % of the original gross list price (MSRP). That is the value that the tax authorities recognize as the market value for a three-year leased bicycle. So, technically, you would have to pay this amount to keep your company bike the lease to take ownership of it. 

But with eurorad, you pay significantly less: You take on your commuter bike for just 16% of the MSRP. This rate is based on a recognized benchmark from the North Rhine-Westphalia tax authorities. This means eurorad is below the market average for major leasing providers, which is around 18 %. 

Here's an example to make it clearer: With an e-bike with a MSRP of 4,000 euros, the tax-deductible residual value after three years is still around 1,600 euros. With eurorad, however, you pay only 640 euros for the buyout—that is, 16% of the original MSRP. 

Important to know: With a company bike lease, there is generally no automatic legal right to purchase a leased bicycle at the end of the lease term. If the purchase were contractually guaranteed from the outset, it would legally constitute a rent-to-own arrangement. This is not eligible for salary conversion, making it significantly less attractive from a tax perspective. In practice, however, it is common for bicycles and e-bikes from the leasing . 

After all, 86% of lessees opt to purchase their leasedbike or e-bike. 

Why 16% Is Not a Problem from a Tax Perspective 

The tax authorities have determined that leased bicycles must be must be sold for at least 40 % of the MSRP without creating a monetary benefit. Because eurorad’s rate of 16% is significantly lower than that, a monetary benefit is calculated to exist. 

So you don't have to worry about it, eurorad handles the flat-rate taxation pursuant to Section 37b of the Income Tax Act at its own expense and automatically lists the tax amount in writing on your receipt. The remaining 16% is therefore the actual price you pay in the end—with no hidden additional costs. For you and your employer . 

For more details on the tax basics of company bike leasing, check out our guide to taxation. 

What Happens After the Purchase, at the End of the Term 

As soon as you own your bike, eurorad will offer you the option to purchase follow-up insurance. This offer is tailored to the value of your bike, so that you remain well-protected while on the road. However, you are not required to purchase follow-up insurance. 

Canceling a Bike Lease: What Happens in Case of Early Termination or a Job Change 

Each lease agreement is fixed for 36 months and cannot be terminated early without good cause. What exactly happens if you leave the company before the term expires depends on your insurance package and the individual agreement with your employer. However, as a general rule: If your employment ends, you must first return the bicycle to your employer in accordance with the lease agreement. 

There are several options and alternatives for this: 

• Transfers within the company: Another employee takes over your company bike for the remainder of the term. 

• Switching to a New Employer: The contract will be amended for the remaining term. With eurorad, this works even if your new employer works with a different leasing provider. Not all providers on the market offer this level of flexibility. 

• Early Purchase: In general, you can also replace your company bike before the end of the term. It’s best to speak directly with your employer about this or contact the Help Centerto clarify the specific terms. 

In special cases—such as a termination for operational reasons as part of a social plan—additional exceptions apply. However, these details depend heavily on the specific circumstances of each case—it’s best to clarify them directly with your HR department. 

Childcare Coverage During Parental Leave or Illness 

Depending on insurance package —such as PremiumPLUS—you’re covered even during a prolonged illness or while on parental leave: The insurance will cover your lease payments in such cases. Your company bike remains insured, and the lease term is not extended as a result. 

Important to know: Payment protection coverage applies only if the cause of the disruption was not yet known at the time the contract was signed. For example, if you were already aware of a pregnancy before signing your lease agreement, the coverage does not apply. You can find the exact terms of your payment protection coverage in your individual insurance package. 

Since the topic parental leave in connection with company bike leasing raises many specific questions, we’ve created a separate guide on the topic. 

Looking Ahead: What Might Change After the Term Expires 

eurorad is continuously expanding its leasing offerings. This means that insurance coverage could protect against even more incidents in the future. The topic of used bike leasing—that is, a seamless transition to a used bike instead of a purchase—is also something eurorad is keeping an eye on. You’ll receive updates in this post and via email whenever there’s something new to report.  

Conclusion: It's worth taking over the lease when leasing a bike 

Whether you choose to buy, return, or trade in for a new model—at the end of your lease term, the decision is entirely up to you. Thanks to the affordable buyout price of 16% of the MSRP and the flat-rate tax covered by eurorad, purchase is a particularly attractive optionif you’d like to keep the bike you’ve grown to love. 

No wonder most people decide to do just that when the term ends. Just keep an eye on the deadlines: eurorad will contact you 12 weeks before the end of the term, and you’ll make your decision no later than 4 weeks before the end if you choose to take over your leased bike . 

Use the leasing calculatorto calculate your savings on the new bike of your dreams, or check out the page for employees to learn about all the benefits of company bike leasing. 

Do you feel fully informed now and ready to lease a company bike? 

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Note: The sample calculations in this article are for illustrative purposes only. Your actual savings depend on individual factors such as income, tax bracket, and tax exemptions. For an accurate calculation, use our leasing calculator, and if you have any questions, consult a tax advisor. 

Frequently Asked Questions About Purchasing a Leased Bike 

How much does it cost to purchase a leased bicycle at the end of the lease term? 

With eurorad, you pay 16% of the original gross list price for the vehicle. You pay only this amount—eurorad handles the flat-rate tax on the monetary benefit for you, at no additional cost. 

Do I have to take ownership of my company bike once the lease term expires? 

No, it's up to you. If you don't respond to the email from eurorad at least four weeks before the rental period ends, your bike will be returned automatically. 

Can I cancel my bike lease early? 

Your contract is fixed for 36 months—you cannot terminate it early without a valid reason. However, if you change jobs, there are flexible solutions available, such as a change in the lessee or early purchase. 

What happens to my company bike if I change employers? 

That depends on your individual insurance plan and the agreement with your employer. Generally, you must return your company bike when you leave the company. However, there are alternatives: You can transfer the bike to your new employer through a change of lessee, assign it to another person within your current company for the remainder of the lease term, or purchase it early. 

What is the final payment for bike leasing? 

The final payment is another term for the amount you pay at the time of takeover your leased bicycle at the end of the term. At eurorad, it amounts to 16% of the original gross list price—well below the tax-allowable minimum of 40%. This means you don’t pay a separate, additional final payment, but rather just this one purchase price.