Cycle to work scheme?

concorde

Is it any good? Or is it just as well to get 0% finance on a bike?

Cheers

papertech202

Been discussed loads of times on here,(do a search to find posts).
I've used the one at my works (there are several different schemes) and I saved 43% on a £600 bike so it was a great deal for me. 8)

danlikesbikes

Most people seem to see a good financial saving, however you need to weigh up your options as you are effectively leasing a bike and then purchasing at the end of the period.

Suggest you look up previous posts as there are lots of good pointers.

passout

I saw it as a 0% finance scheme with the bonus of a discount. I saved about 30% - it does partly depend on the tax status of your employer as well as your own salary level. It doesn't always apply to sale bikes though & not everyone uses it. It's worth it, generally speaking.

tarbot18

its a no brainer, all cycle schemes will save you money just depends how much.

Mine which finishes next month runs over 18 months with a further 18 months on a free lease which negates any final payment , ended up costing me £588 for a £1000 voucher !

ElliesDad

I am going through the process at the moment and have plumped for the maximum £1000, broken down as follows:

Cost of bike over 12 months = £670
Tax benefit in kind payable to take ownership of the bike = £50

Therefore saving = £280

The other way to look at it is where else can you get an interest free loan for a bike over 12 months and end up paying less back than the bike is worth!

Daz555

Only reasons to avoid C2W:

1. You can't get the bike you want within your spending limit (£1000).
2. The bike you want is discounted heavily elsewhere.

concorde

Ok cool. Asking for my brother I was, as he said he'd be paying something like £80 per month for a year. The bike is £999 so that hardly any saving.

He may have got it wrong. He gets the bike at the end of it for nothing, doesn't have to buy it at a %.

He's probably got something wrong in there mind.

The Rookie

FMV hasn't been mentioned, be sure you know exactly what will happen at the end of your years LEASE, if you end up having to pay the FMV at 50% you'll have paid more than paying cash.

cooldad

Concorde wrote:

Ok cool. Asking for my brother I was, as he said he'd be paying something like £80 per month for a year. The bike is £999 so that hardly any saving.

He may have got it wrong. He gets the bike at the end of it for nothing, doesn't have to buy it at a %.

He's probably got something wrong in there mind.

The payment comes off your gross salary, so saves the tax and NI you'd pay on it. Which you would have realised if you'd followed post 1.

concorde

The Beginner wrote:

FMV hasn't been mentioned, be sure you know exactly what will happen at the end of your years LEASE, if you end up having to pay the FMV at 50% you'll have paid more than paying cash.

Have done, get it for nothing, so def saving.

anj132

Daz555 wrote:

Only reasons to avoid C2W:
2. The bike you want is discounted heavily elsewhere.

Unless you get your employer to buy that bike and then operate the scheme internally.

The Beginner wrote:

FMV hasn't been mentioned, be sure you know exactly what will happen at the end of your years LEASE, if you end up having to pay the FMV at 50% you'll have paid more than paying cash.

That would make it a HP agreement which takes it outside of the scheme. That would be some nasty employer who would do FMV 50% though!