Hiring a lease bike
When leasing your bicycle, you are essentially renting it for an extended period. Usually, this involves a three or four-year lease contract, which you enter into with your employer’s chosen leasing company. Each month, you pay a contribution towards using your bicycle, along with any associated services (e.g. maintenance, insurance, breakdown assistance, etc.). This is typically taken out of your gross salary. After the lease period, riders are given a choice. Either you purchase your bike at residual value, or simply return it to o2o at no extra cost. Hence, when it comes to leasing, at no point are you under any obligation to purchase the bicycle. You can just return it free of charge. By doing so, not only are you doing your bit for the circular economy, but you’re also able to lease a brand-new bike. Below you will find both options listed in more detail.
The end of the road – what are your options?
Once your pre-agreed lease period is up, your bicycle lease contract comes to an end. However, as a rider, you are under no obligation to take over your lease bike. The choice is yours:
1. Return your bicycle to o2o
By returning your bike to us at the end of your lease contract, you are contributing towards a more sustainable world, giving your old, trusted two-wheeler a second ‘lease’ on life. At the end of the lease, our partner Decathlon will collect, refurbish and put your bike back onto the second-hand market. Find out more about this circular project via this blog post.
What’s more, you are then completely free to lease another brand-new bicycle, should your employer allow this. Perhaps you need a handy cargo bike to transport the kids, or maybe this time you’ll go for that trendy city e-bike? Even with your new lease, you have the complete freedom to choose the bicycle that’s right for you.
There are no extra costs involved when returning your bike, with no action required thereafter – albeit apart from dreaming about your next two-wheeler…
2. Taking over your two-wheeler
Hard letting go of your trusty steel companion, isn’t it? Fear not, as there is always the option of purchasing your bike at residual value , as set out in your employer’s Bike policy. At o2o, this is usually between 16% – 20% of your bike’s original list price, with the same applying to any accessories. Once you’ve taken over the bicycle, it becomes your private property, meaning that maintenance and insurances are now entirely your responsibility.
Taking over your bicycle makes perfect fiscal sense as, at the end of the day, you will be paying on average 40% less for your bike than if you had simply bought it yourself. Find out more about the total cost of your lease bike via this blog post.
What’s more, should you employer allow it, you are still able to lease a new bike, even after you’ve taken over your current one! So, why not alternate different styles? Maybe switch between a cargo or road bike?
What if your lease is terminated early?
Sometimes, bicycle leasing contracts can be terminated early, for example in the event of workplace termination or retirement. Even in such situations, you are never under any obligation to take over your bike. That being said, you will always be given the option. In such instances, the purchase price will inevitably be higher, as the lease contract has not yet been fulfilled, meaning you have not yet paid off the full lease amount. If you choose not to take over the lease bicycle, however, you will need to pay an early termination fee. This is a pre-agreed figure from the time of entering into your lease agreement and corresponds to the amount it will cost o2o to cancel the insurance policy.
Find yourself in the unusual position of needing to pause your lease, for instance in the event of parental leave or long-term illness? Such situations are negotiated in advance with your employer, with any such arrangements set out in your company’s Bike policy. You can find this in the Kick-Off zone in myo2o Biker.
Conclusion: the choice is really yours
As you can see, it really is a myth that you end up paying double on lease bicycles. For the duration of your lease contract, you get to lease your bike at a fiscally beneficial rate. Then, once your contract is up, you are always free to choose whether to keep or simply return it. In the event of taking it over, you save on average 40% compared to purchasing the bicycle privately. Plus, should you rather return it to o2o, it’ll cost you even less, and you are completely free to lease your brand-new dream bike.
Ready for your brand-new lease bike?
Want to return your bicycle to o2o? Does your employer allow you to lease another new bike? Then it’s time to start thinking about your dream bike! No idea what exactly you’re looking for? No problem, our handy Bike guide will have you riding off in no time!