Key takeaways
- Octopus Electric Vehicles is launching an e-car package via salary conversion in Germany, employees of participating companies can also use the car privately.
- There are 67 models from 14 manufacturers to choose from, including BMW, Tesla, Mercedes, BYD, Polestar, Renault, Cupra and Xpeng.
- According to the provider, employees save around 40 percent compared with conventional leasing on a total-cost basis.
- The package is all-inclusive: insurance, maintenance, TÜV/HU (vehicle inspection/exhaust test), tyres, breakdown assistance and €250 of Octopus charging credit per year are included.
- For employers, the offer is free of charge, with no deposit and no set-up fee.
What Octopus is announcing
As reported by Electrive.net, the German Octopus division Octopus Electric Vehicles is putting together a new all-round package for renting an e-car via salary conversion. The model had previously been established in the UK and is now being rolled out to Germany. At launch, the selection includes 67 models from 14 brands: BMW, BYD, Cupra, Ford, Kia, Mercedes, MG, Mini, Polestar, Renault, Smart, Tesla, Xpeng and Zeekr, from small cars to luxury saloons, covering European, Asian and US manufacturers.
How salary conversion works
With salary conversion, employees waive part of their gross salary in favour of a company car. In the Octopus model, the company leases the e-car, which may be used both privately and for business. Thanks to the tax benefit, employees get the car significantly cheaper than with private leasing; at the same time, the employer saves social-security contributions on the converted portion of salary, and the running costs of the company car are tax-deductible as business expenses.
Sample calculation from the Octopus offer
For a popular compact-class model, monthly total net costs fall from €560 to €345, a saving of almost 40 %. Assumptions according to Octopus: gross salary €6,000, tax class I, place of residence Bavaria, commute 10 km, contract term 2 years, 10,000 km/year. With conventional leasing, insurance alone is often well over €100 per month, a cost driver that is eliminated in the all-inclusive package.
What is included in the all-inclusive package
- Vehicle delivery
- Insurance, maintenance and servicing
- TÜV/HU (vehicle inspection/exhaust test) and tyre package
- Breakdown assistance
- €250 annual credit for public charging with Octopus’ charging app Electroverse
- No deposit, no set-up fee
- Fixed price with no hidden costs
Timing and experience from the UK
According to Octopus, the Germany launch is no coincidence: for the first time, e-cars have overtaken conventional combustion engines in new registrations, and many employees are currently thinking about making the switch. General Manager Achim Hirsch explains: “Once you’ve made the step to an e-car, you never want to go back. That’s why we’re making it as easy as possible to become part of electromobility. Companies can give their staff a huge advantage without paying a single cent themselves. As a side effect, they get a benefit that can really make a difference when it comes to recruiting skilled staff.”
„“In the UK, this model has transformed the market. Now we’re bringing our experience from 50,000 deliveries to Germany.”“
— Achim Hirsch, General Manager Octopus Electric Vehicles, gegenüber Electrive.net
According to its own figures, Octopus offers more than 133 models from 30 brands worldwide; internationally, more than 8,000 employers already have their workforce equipped with e-cars via Octopus Electric Vehicles. Founded in 2018, the company is part of the Octopus Energy Group.
Frequently asked questions
- What does “tax-free charging 2.0” mean in the Octopus context?
- Unlike the classic 0.25% or 0.50% rule for charging company cars (§3 No. 46 EStG), Octopus relies on the salary conversion model: employees exchange part of their gross salary for a fully equipped e-company car, including insurance, maintenance and charging budget.
- Which manufacturers are involved at the German launch?
- At launch, the offering includes 67 models from 14 brands, including BMW, BYD, Cupra, Ford, Kia, Mercedes, MG, Mini, Polestar, Renault, Smart, Tesla, Xpeng and Zeekr.
- How big is the saving in concrete terms?
- In a sample calculation from Octopus, monthly total net costs fall from €560 to €345, almost 40 %. How big the difference actually is depends on the total cost profile and the individual tax class.
- What do employers have to invest?
- Octopus describes the offer for employers as free of charge and straightforward, no deposit, no set-up fee. The ongoing leasing and maintenance costs of the company car count as business expenses.
