Bike to work schemes

bleasy

Hi people are bike to work schemes any good for buying a bike. I dont really understand what happens after the 12 months you pay salary sacrifice for. Do i buy the bike from work if so how much for or do you continue to hire if so again how much for. I do hope you guys can help

Monkeypump

There are lots of schemes out there.

I would advise finding out which one your company uses, then getting as much information as possible (all will provide lots of leaflets). Read it all VERY CAREFULLY, then ask specific questions either here or, preferably, the scheme administrator.

Alternatively, use the search function on here as there are lots of threads discussing this.

In simple terms, your company owns the bike and then you buy it from them at the end of the agreed period. The 'how much' is not simple to answer, but your scheme administrator can probably give you some examples.

The tax benefit and end-of-term payment mean the system doesn't result in bargain bikes quite as it used to. However, it can still be a good way to obtain and pay for a new bike. I don't mean the response above to be dismissive, but there are so many questions it will take an age to cover everything you may want to know.

Remember - read the small print very carefully. There are many cases of people claiming they've been ripped off, when in fact they simply didn't check what they would actually end up paying.

Briggo

Monkeypump wrote:

The tax benefit and end-of-term payment mean the system doesn't result in bargain bikes quite as it used to.

As you said yourself, he needs to find out what scheme the employer is operating so this is a sweeping statement as you clearly have no idea what it offers.

An example of a scheme - http://www.cyclescheme.co.uk/employers/ ... mrc-update

£1000 bike = net cost p/m £58 x12 = £696.
At end of 12 month period pay 7% deposit (value of equipment minus VAT) and extend lease for 36 months and then its officially yours at the end of that period.

£696 + £56 = £752

So that £1000 bike costs £752 (or there abouts I couldnt be bothered to add up the pence) which is a 25% ish saving, not bad considering thats on top of an interest free no questions asked, not on your credit file, loan.

bleasy

Thanks guys, my work are on the cyclescheme. Can you get a bike for more than £1000 if you add to it?

cooldad

Technically no.

bleasy

Oh dear the saracen zen x im thinking of getting is £1099 cant get it on the cyclescheme then

benpinnick

Ask your lbs to sell the bike for a grand, and £100 cash from you.