Volkswagen Group has introduced a new program in Germany called e. loop, which could cut EV lease costs by up to 50% for employees.
The program, launched by Volkswagen Group Retail Deutschland (VGRD), is a salary conversion scheme where employers lease an electric vehicle for their workers.
Under e. loop, the employer signs an agreement with VGRD, and employees select their desired EV online.
The monthly payment is deducted from gross income, reducing payroll taxes.
How e.loop Works
Volkswagen describes the process as a simple four- or five-step procedure, mostly handled online. Employees can choose from models like the Volkswagen ID.
3 or the Porsche Cayenne Electric.
The lease includes insurance and maintenance, making it an all-inclusive package. Terms are available for 24 or 36 months.
Employers benefit from tax advantages for EVs, improved employee retention, and a better ESG profile, with minimal administrative effort.
Interest in the program is already high, and VGRD expects e. loop to account for 5-10% of new car sales in Germany by 2030.
One potential downside: if an employee leaves the company, the employer may be stuck with the vehicle.
