Mobility budget or lease car: what fits your organization?
Not sure whether to choose a mobility budget or a lease car? There's no solution that works best for every organization or employee. The right choice depends on your employees' travel behavior, the locations where they work, and the goals of your mobility policy.
On this page we lay out the differences, advantages, and considerations, so you can make a choice that fits your organization.
Jeroen Meijer, Sales Manager
NS Zakelijk
Don't just look at the car, look mainly at your employees' travel behavior.
A lease car often fits employees who cover a lot of business kilometers.
A mobility budget offers more flexibility for hybrid working and different modes of transport.
For many organizations, a combination of both solutions works best.
What's the difference between a mobility budget and a lease car?
With a lease car, you as an employer make a car available to an employee. Maintenance, insurance, and a fuel or charging card are arranged through the lease contract. Employees use the car for business travel and often privately too.
A mobility budget works differently. As an employer you make a budget available with which employees decide for themselves how they travel. Think of the train, OV-fiets, shared car, shared bike, or taxi.
Want to know exactly how a mobility budget works?
A summary of the pros and cons
certainty about transport;
maintenance, insurance, and roadside assistance are arranged;
predictable costs;
suitable for high business mileage.
Keep in mind the tax addition (bijtelling) that applies when employees also use the car privately.
freedom to choose the mode of transport that best fits each trip;
room to actively encourage sustainable mobility, for example by rewarding sustainable transport choices extra;
an added incentive for employees to choose the train or the (OV-)bike more often;
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Greenwheels-shared car available as a practical addition for occasional car needs, with costs only for trips actually made.
Both a lease car and a mobility budget come with considerations.
With a lease car, employees are often tied to one car for a longer period. This offers less flexibility when they regularly travel by train or work hybrid. Depending on the destination, the car also isn't always the fastest or most practical choice. In addition, private use can lead to a tax addition.
A mobility budget, on the other hand, requires more self-direction. Employees choose and plan their own trips. Clear agreements about how the budget can be used help set expectations.
Don't just look at job roles, look mainly at travel behavior.
A lease car often fits employees who:
cover a lot of business kilometers;
regularly visit clients;
work at locations where public transport is limited.
A mobility budget often fits better for employees who:
work hybrid;
regularly visit different locations;
live close to a train station;
like to combine different modes of transport.
Using a mobility budget? Then the NS-Business Card makes traveling by train, bus, tram, metro, and OV-fiets easy.
A mobility budget makes it easier to encourage sustainable transport choices. Employees can choose the train per trip when it's a good alternative to the car. This helps organizations lower their CO2 emissions and supports the Work-Related Personal Mobility (WPM) reporting obligation.
Want to give employees insight into how much CO2 they save by taking the train instead of the car?
A lease car or a mobility budget doesn't have to be an all-or-nothing choice. Many organizations choose a combination of both. An employee who covers a lot of business kilometers gets a lease car, while colleagues who mainly work hybrid or regularly travel by train use a mobility budget instead. This way your mobility policy fits different travel profiles better.
Whether you choose a lease car, a mobility budget, or a combination of both: with NS Go you manage employees' mobility in one place. This gives you an overview of mobility costs and business travel.
Frequently asked questions about mobility budget or lease car
Is a mobility budget tax-free?
Whether a mobility budget can be used tax-free depends on how you set it up as an employer and what employees spend it on. Tax advantages may apply to business public transport travel. Align the setup of your mobility allowance with your financial or tax advisor.
How do I calculate which is more cost-effective for me: a mobility budget or a lease car?
That depends on your employees' travel needs and how you set up your mobility policy. For a lease car, compare lease costs, fuel or charging costs, management, and the tax addition, among other things. For a mobility budget, look at the available budget, expected travel behavior, and the costs of different transport options. Also take different travel profiles within your organization into account.
Is a mobility budget cheaper than a lease car?
That depends on your employees' travel needs and how you set up the mobility budget. Compare not just the monthly costs, but also lease costs, fuel or charging costs, travel behavior, and the use of different modes of transport. For some organizations a lease car is more cost-effective, while a mobility budget offers more flexibility for others.
Can I combine a mobility budget and a lease car?
Yes. More and more organizations choose a combination of both. Employees who cover a lot of business kilometers can get a lease car, while colleagues who work hybrid or regularly travel by public transport use a mobility budget. This way your mobility policy fits different travel profiles better.
Can I get an allowance instead of a lease car?
Yes, you can offer employees a mobility budget or a travel allowance instead of a lease car. With a travel allowance, you reimburse the travel costs incurred. With a mobility budget, you give employees a budget with which they decide for themselves how they travel. Which option works best depends on the travel behavior and mobility policy within your organization.
Our mobility advisors are happy to think along with you about what works best for your organization. From bike leasing to a mobility budget, we look at your employees' travel behavior together and help you build a policy that genuinely fits.
