Kazenmaier launches service vehicle leasing through payment conversion

Karlsruhe-based leasing company Kazenmaier Leasing is expanding its offerings to include a service car leasing program for electric vehicles. This initiative aims to give employees who do not qualify for traditional company cars access to an electric vehicle through salary conversion.

Image: Daniel Bönnighausen

The model is similar to the well-known service bike leasing: in this case as well, the contract parties and lessees are companies that provide the vehicle to their employees for both personal and business use. However, the leasing cost is not covered by the company but rather by the employee through the conversion of a portion of their gross salary.

For the employer, this offer should be cost-neutral; depending on the circumstances, savings on social contributions may even arise. In return, employees gain access to business rates that are not available to them as private customers.

The employer sets the framework

However, this is based on a pre-agreed framework contract between the employer and Kazenmaier. In it, the company specifies which employees are allowed to participate, what vehicle category can be chosen, and what the maximum conversion rate is. Pre-configured electric cars ranging from compact cars to SUVs are available for selection. Through an online portal, employees can calculate in advance how the cost of their desired vehicle will affect their net salary.

After they sign a lease agreement, the employer releases the vehicle for use. Insurance, maintenance, and tires are included in the monthly fee, with only charging costs added on top. There is no option to purchase the vehicle at the end of the lease term, and according to Kazenmaier, there is no residual value risk for users. However, the provider does not specify any particular models, lease durations, or example monthly fees.

The model is considered financially attractive mainly due to the tax treatment for business use of electric vehicles. For a gross list price up to 100,000 euros, personal use is taxed at a flat rate of only 0.25 percent of the list price per month.

Kazenmaier’s focus on electric vehicles for company cars aligns with the company’s strategy. CEO Max Nastold stated in a February interview with electrive that Kazenmaier does not lease plug-in hybrids at all. “We generally do not lease plug-in hybrids. We view electric mobility as a clear strategic choice,” said Nastold.