Understanding long-term leasing (LLD) of bikes and e-bikes
What is long-term leasing and how does it work?
Long-term leasing (known in France as LLD, location longue durée) of e-bikes lets companies provide their employees with a fleet of bikes without the constraints of buying them. The bikes are supplied by a leasing company that takes care of maintenance and support, making it a turnkey solution.
Benefits of long-term leasing for e-bikes
LLD lets companies reduce their tax bill, as lease payments are tax-deductible. It also encourages sustainable mobility and improves employee well-being by offering a green and healthy way to get around.
Since 2020, cycling has boomed in France, especially in cities. Thanks to how easy and fast it is, the e-bike has become a sought-after item, but it is often expensive, with an average price of €1,740. Offering e-bikes on long-term lease is an opportunity for companies to retain employees and attract young talent looking for employers committed to corporate social responsibility (CSR).
The e-bike as a green way to get around
Lower CO2 emissions
E-bikes are a sustainable mobility solution that helps companies reduce CO2 emissions. By encouraging employees to use e-bikes, companies shrink their carbon footprint and play an active part in protecting the environment. A 10 km bike journey emits just 10 g of CO2, compared with 1.9 kg by car.
Learn more about the CO2 footprint of e-bikes vs cars
Impact on employee health
As well as cutting polluting emissions, e-bikes encourage regular physical activity. Employees who commute by e-bike enjoy better cardiovascular health, less stress and greater overall well-being. Pedalling 30 minutes a day lowers the risk of cardiovascular disease and supports mental well-being by oxygenating the brain and reducing stress.
What are the financial benefits for companies?
Lower transport costs
Leasing e-bikes lets companies cut the transport costs associated with traditional company cars. Fuel, parking and maintenance costs drop significantly, making it an economical and eco-friendly solution. What's more, charging an e-bike costs around €1 per 1,000 km, a substantial saving compared with motor vehicles.
Tax benefits and subsidies
Companies can benefit from several tax advantages by choosing to lease e-bikes. For example, long-term lease payments are often deductible from corporation tax in France. In addition, some regions offer subsidies to encourage sustainable mobility.
What is the difference between LLD and LOA for a bike or e-bike?
Key features of LLD
Long-term leasing (LLD) lets companies lease e-bikes for a fixed period, usually between 12 and 48 months. The cost often includes maintenance and support, making it a practical, hassle-free solution.
Key features of LOA
Leasing with an option to buy (LOA, location avec option d'achat) also lets you lease e-bikes, but with the possibility of buying the bike at the end of the contract. Monthly payments can be higher, but this option gives more flexibility to users who want to own the bike.
Pros and cons of each option
LLD is ideal for companies that want simple management and controlled costs. It also offers attractive tax benefits. LOA, on the other hand, is better suited to companies or employees who may want to own the bike eventually, although it often means a higher overall cost.
Managing your carbon footprint through mobility
Employee travel is a major source of greenhouse gas emissions for companies. By adopting sustainable mobility solutions such as company bikes, electric vehicles or carpooling, companies can significantly reduce their carbon footprint. A sustainable mobility plan that includes company bikes is a strong argument for corporate social responsibility (CSR).
The economic case
Less logistics and fewer technical constraints
Leasing e-bikes reduces logistics management and removes the technical and financial constraints of a car fleet, such as fuel, maintenance and insurance. E-bikes also take up less space (6 bikes take the space of 1 car), making better use of parking space.
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