Bike Market 2025: How E-Bike Leasing Drives New Sales

The global bicycle market continues to face post-pandemic structural challenges. Even in the second half of 2025, market recovery remains slower than expected. This is driven by numerous factors, including tighter consumer spending, reduced disposable income, and slowing market growth. As a result, brands must explore new ways to attract customers and stimulate purchasing desire. To achieve this, some brands are embracing concepts from leasing culture.

Leasing and sharing services have rapidly gained popularity. This model not only lowers the entry barrier for activities like off-road riding, but it also shows significant potential to convert short-term renters into long-term owners. This has given rise to the "rent-to-own" concept.

Key Takeaways

• The 2025 bike market is struggling with slow growth, forcing brands to find new sales channels like leasing to attract customers.

• The "Rent-to-Own" model is proving effective in the UK, converting short-term renters of MTBs and e-MTBs into long-term owners and clearing inventory.

• Germany's leasing market is driven by corporate programs, which show a strong preference for high-end, premium e-bikes.

• Leasing is particularly effective for high-value, niche products, allowing consumers to test models like an adult electric dirt bike before buying.

• Growth in SME (Small and Medium-sized Enterprise) leasing is a major new driver, indicating a sustainable shift in the industry.

The UK Model: Leasing as a Sales Channel

Converting Renters to Owners

UK distributor Paul's Cycles identified this opportunity early and conducted a national survey. The results showed that MTB leasing and sharing services are increasingly popular in regions like the UK. These programs are effective at converting short-term renters into long-term owners and simultaneously moving existing inventory.

"Retailers should view leasing programs as a new sales channel, not just a low-profit business," noted Tom Thornley, General Manager of Paul's Cycles. "Low-barrier leasing attracts novices and hesitant buyers... paired with courses or riding events, it encourages long-term participation and expands the potential customer base."

The survey from Paul's Cycles, which included 1,000 UK mountain bike owners, revealed that 21% had previously rented an MTB. Interestingly, after purchasing their own bike, the proportion of owners who still rent *increased* from 8% to 13%.

Strategy: "Try Before You Buy"

The leasing model is highly beneficial for niche markets like MTBs, e-MTBs, and electric road bikes. These activities are experience-driven, often linked with training centers or holiday travel.

Thornley believes that in a volatile market, retailers need flexibility. By offering test rides, targeted marketing to rental users, and clear rent-to-own pathways, they can guide customers to ownership. While leasing is flexible, consumers eventually trend toward buying, citing better long-term value, convenience, and personal satisfaction.

To lower the barrier to purchase, Paul's Cycles offers financing and loan options. The "try-before-you-buy" model is effective, especially for those curious about the performance of an ebike 40 mph, and consumers can often purchase the demo bikes at a lower price.

Germany: Corporate Leasing & Premium Trends

In Germany, the e-bike leasing market is significantly driven by corporate leasing. This segment shows a strong preference for high-end electric bikes, including premium commuter models and stylish vintage e bike designs.

A quarter of all German households now own an e-bike, and approximately one-third of those were acquired via leasing. Kim Lachmann, a Deloitte director and bike market expert, stated that corporate bike leasing has become one of the most relevant market drivers in the bicycle industry.

Digital Channels and SME Growth

While physical retailers remain key, digital channels are growing. In 2024, 17% of German leasing transactions were handled digitally (up from 12%), and the online leasing share of the total market hit 29%.

A significant new trend is the accelerating growth of leasing among small and medium-sized enterprises (SMEs) in Germany. There are now 269,000 employers offering company bike leasing (a 32% increase YOY), and 78% of them are small or micro-enterprises. "Further growth potential lies with SMEs," said Deloitte's Stefan Ludwig.

Industry Outlook: Vasilios von Rauch of Zukunft Fahrrad believes corporate leasing will change the industry by increasing demand for high-quality bikes, from cheap electric dirt bikes for adults for recreation to premium e-bikes for commuting. It also pushes brands to clarify regulations, answering key questions like "are e bikes street legal" for corporate use. This model is driving the entire industry toward a more sustainable, high-quality future.

FAQ

Why are bike brands using leasing models in 2025?

The market recovery is slow and consumer spending is tight. Leasing acts as a new sales channel to attract hesitant buyers, lower the barrier to entry, and help sell existing inventory.

Does leasing only apply to entry-level bikes?

No, the German market shows a strong trend toward premium models. The average price of a leased e-bike (3,720 EUR) is significantly higher than the overall market average (2,650 EUR).

Does leasing hurt long-term bike sales?

No, it appears to support sales. It functions as a "try-before-you-buy" program. Data from the UK shows 21% of MTB owners had rented one first, effectively converting renters into owners.

Is this model good for testing an electric dirt bike?

Yes, this model is ideal for niche, experience-driven markets. It allows a rider to test a street legal electric dirt bike or an electric mini bike for adults on actual trails to see if it fits their needs before committing to a full purchase.