Cycle Scheme - Changes in market value payment?

nickrandall1982
nickrandall1982 Posts: 12
edited January 2011 in Road beginners
Sorry if this has been covered already but just wondering what people's thoughts are regarding the changes that have occured with the Cycle Scheme regarding the market value payment? It would seem that the 25% fee for any bikes over £500 at the end of the 1st year doesn't really make this scheme worth while any more?

See this reduces to 7% after 4 years but would have said that most people would rather just pre-own their bike as standard than have to go through this?

Are people still considering this as a viable option?

Thanks

Comments

  • springtide9
    springtide9 Posts: 1,731
    Our company does the standard 18 months... but after that last (18th) payment.. you are free to ride the bike free of charge until the 5 years are up.. at which point the bike has no value.

    The bottom line is that companies have no interest in the C2W scheme or the bikes - they are only interested in the companies NII savings.

    I think as long as you don't get hung up on the ownership bit... it is still worth while. I guess it does restrict you selling in this period.... but reality (rather than the rules of the scheme) means it's so unlikely that the bike would ever be checked.
    I guess the question is... do you think a government database exists that has the make and model of every bike sold via C2W, with the frame numbers, components etc ?
    I would take a good guess and say the answer there is 'no'. And even if one exists... there is nothing in the scheme that stated the frame. forks, chainset, wheels cannot be replace.
    Simon
  • bendertherobot
    bendertherobot Posts: 11,684
    C2W bikes are deducted at source from salary.

    Effectively, they therefore cost nothing and are free from the prying eyes of spouses.

    Mega value. ;)
    My blog: http://www.roubaixcycling.cc (kit reviews and other musings)
    https://twitter.com/roubaixcc
    Facebook? No. Just say no.
  • neil_sheehan2000
    neil_sheehan2000 Posts: 529
    The company I work for have done some very odd jiggery-pokery with the payments that you have to make, meaning that you pay only a tiny bit more over the course of the year than you would have done previously. I'm not too sure on the details, but I would be incredibly surprised if it turned out not to be legal.

    So it may be worth asking your HR department exactly how much you would wind up paying on the bike over a year; you may be surprised.
    Meta

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