Cycle to Work Scheme - Haggling

Tegglington

Ladies an dGents,

Just wondered if anyone had any experience trying to haggle using the C2W scheme.

The scheme has just been renewed at work, and I am looking at getting my first road bike. I have to use Halfords to source my bike and I like the look of the Boardman Road Team Carbon currently at £1300.

currently Halfords are doing 10% off all road bikes, which accompanied with a British Cycling Membership (another 105 off) brings the bike down to £1040.

Do you think I could try and get Halfords to drop the bike below £1k as that is teh most I can borrow on scheme?

Also what are peoples thoughts on the Boardman Team? both carbon and Alu? Its ether one of those or a Bianchi VIA Nirone 7 Xenon. any thoughts or experiences welcome on either of these two bikes.

All information greatly appreciated!

Cheers

Warren

monkimark

I think you get a £1000 voucher and you can pay the rest in cash if you want.

Tegglington

looking at the FAQ's on this service, they wont allow you to buy a more expensive bike with part cash payment

http://www.bike2workscheme.co.uk/index.php/faqs

Minglok74

You have to ask Halfords if they are prepared to lose £1000 or £40.

I use to have the Boardman Team Carbon and have to say, apart from having to replace the right SRAM rival shifter under warranty, it was a superb bike.

I've still got the Bianchi Via Nirone, but i've upgraded every component on it. Love the frame and it's my daily commuter bike.

slowbike

Hmm ... very simply you "save" either 32% or 42% off RRP(depending on your tax band) but don't own the bike having paid that out - plus you have to insure and maintain it ... you then can put a deposit on the bike for an extended lease - 12 months old and >£500 orig price is 25% - so you're now only saving 7% or 17% ... and that's off RRP ...

I think I'd prefer to go and get a decent deal on a bike unrestricted by the CycletoWork schemes to start with!

denniskwok

Tegglington wrote:

looking at the FAQ's on this service, they wont allow you to buy a more expensive bike with part cash payment

http://www.bike2workscheme.co.uk/index.php/faqs

Depends on how creative the bike shop is when filling out the quote form.

thistle_

If that's the bike you want they should be able to find a way to do it for you.

You could buy a very expensive 'misc part' or something similar (does your workplace let you buy additional accessories on C2W as well as the bike?)

The Rookie

All may work with an LBS, but this is Halfords own scheme through it's own shops.......

Your chances are NIL I think......

Tegglington

Well there is only one way to find out. If you don't ask, you don't get

I have now been pointed in the direction of a giant Defy 1. this comes in at just under £1k. so wouldn't be a problem with the scheme.

I have used the scheme before and have no issues with it, at the end of the year my company decided to sell me the bike for 1p (apparently they "had" to sell it to me). so am fairly confident they would do the same again.

so now I'm stuck,

haggle for the Boardman... the very pretty Bianchi... or a Giant Defy 1 (which has some really good reviews)

again, any experiences/advice with these bikes would be a great help!

Thanks All!

pdw

I have used the scheme before and have no issues with it, at the end of the year my company decided to sell me the bike for 1p (apparently they "had" to sell it to me). so am fairly confident they would do the same again.

HMRC have issued guidance that selling the bike for less than what they consider to be fair market value constitutes a taxable benefit, so if your company were to sell it to you for 1p then you can expect a tax bill if your company were to be inspected.

slowbike

pdw wrote:

I have used the scheme before and have no issues with it, at the end of the year my company decided to sell me the bike for 1p (apparently they "had" to sell it to me). so am fairly confident they would do the same again.

HMRC have issued guidance that selling the bike for less than what they consider to be fair market value constitutes a taxable benefit, so if your company were to sell it to you for 1p then you can expect a tax bill if your company were to be inspected.

If the bike was originally >£500 after 1 year HMRC consider the fair market value to be >25% .... making the saving far less attractive considering the restriction to shop and RRP requirement.

goonz

Have you tried asking Halfords instead of asking members of a forum?

Tegglington

I just wondered if anyone had any experience in haggling their way to a better bike with Halfords using the C2W scheme.

unfortunately its the only way to purchase a new bike, as I cannot afford a lump sum.

I will be asking them and will report back.

Thanks everyone for your input.

Headhuunter

IME retailers will only sell bikes at listed, full retail price on the bike to work scheme, many retailers will rescind sale prices if you say you want to buy on bike to work. I think part of the reason is that if you're doing bike to work through a middle man provider like Cyclescheme, the retailer has to pay a fee to Cyclescheme so they're less keen on offering you a discount as well. Having said that it would be worth asking... Doesn't cost anything...

magoo289

My LBS gave me £50 off and gave me 2 bottles but he got it back when I bought bottle cages and pedals. No harm in asking. Don't fancy your chances with Halfords thou.

pdw

If the bike was originally >£500 after 1 year HMRC consider the fair market value to be >25% .... making the saving far less attractive considering the restriction to shop and RRP requirement.

It's still possible to get decent savings. Our company runs its own scheme, so no shop restrictions or RRP requirement, and the final transfer is deferred for a few years until HMRC agree that the bike is worth rather less.

cambb

I got told you couldn't use the British Cycling Membership with C2W.

t4tomo

Tegglington wrote:

so now I'm stuck,

haggle for the Boardman... the very pretty Bianchi... or a Giant Defy 1 (which has some really good reviews)

again, any experiences/advice with these bikes would be a great help!

Thanks All!

I have the Bianchi, excellent bike and much prettier than the Giant or the Boardman. My mate has the Giant and its a pretty decent bike - you do see loads around, it depends on whether that bothers you I guess.

None of the 3 are a "dud" you wont be dissappointed with any of them so go with which excites you the most.

rolf_f

Slowbike wrote:

Hmm ... very simply you "save" either 32% or 42% off RRP(depending on your tax band) but don't own the bike having paid that out - plus you have to insure and maintain it ... you then can put a deposit on the bike for an extended lease - 12 months old and >£500 orig price is 25% - so you're now only saving 7% or 17% ... and that's off RRP ...

I think I'd prefer to go and get a decent deal on a bike unrestricted by the CycletoWork schemes to start with!

I'd get ALL the facts before making that sort of decision!

1) You don't actually have to insure it. It's just that if you lose it, you keep paying. But that applies if you bought the bike with cash. It just oddly seems unfair to still be paying for something you no longer have but it isn't really. Same applies for maintenance.
2) At the end of the year, you either pay an additional months fee to carry on the lease for another three years after which you take ownership, or you return it for the same fee (this time some sort of handling charge) or you keep it and take ownership for 25% - which is really pretty pointless and probably the Govt expects nobody to actually do this but is simply there to avoid the problem over the bike being undervalued after one year. It's not in real terms lost much value as a deal over the original conditions unless you are bothered that you don't officially own the bike for four years.

It's true that if you can find a good discount then there are better deals elsewhere - the infamouse Scott CR1 frame deal would get you a far bigger bargain than C2W ever could - but if you are after a bike which isn't subject to discounting then it's hard to see how you would do better. Neither my Orange, Look or Ribble could have been had cheaper outside C2W. But a Trek, Giant or Specialized might well have been.

The Rookie

pdw wrote:

If the bike was originally >£500 after 1 year HMRC consider the fair market value to be >25% .... making the saving far less attractive considering the restriction to shop and RRP requirement.

It's still possible to get decent savings. Our company runs its own scheme, so no shop restrictions or RRP requirement, and the final transfer is deferred for a few years until HMRC agree that the bike is worth rather less.

Which to my mind is still a taxable benefit in kind, as it's not something available to non employees and a benefit of your emplyment (the free loan for 3-4 years of a year old bike)...will see if HMRC ever come down on that one!

bigmonka

The Beginner wrote:

pdw wrote:

If the bike was originally >£500 after 1 year HMRC consider the fair market value to be >25% .... making the saving far less attractive considering the restriction to shop and RRP requirement.

It's still possible to get decent savings. Our company runs its own scheme, so no shop restrictions or RRP requirement, and the final transfer is deferred for a few years until HMRC agree that the bike is worth rather less.

Which to my mind is still a taxable benefit in kind, as it's not something available to non employees and a benefit of your emplyment (the free loan for 3-4 years of a year old bike)...will see if HMRC ever come down on that one!

The deferred ownership is what the big schemes like Cyclescheme now do since HMRC moved the goal posts so you'd think it would be ok with HMRC.

slowbike

The Beginner wrote:

pdw wrote:

If the bike was originally >£500 after 1 year HMRC consider the fair market value to be >25% .... making the saving far less attractive considering the restriction to shop and RRP requirement.

It's still possible to get decent savings. Our company runs its own scheme, so no shop restrictions or RRP requirement, and the final transfer is deferred for a few years until HMRC agree that the bike is worth rather less.

Which to my mind is still a taxable benefit in kind, as it's not something available to non employees and a benefit of your emplyment (the free loan for 3-4 years of a year old bike)...will see if HMRC ever come down on that one!

But isn't it what the gov are trying to achieve - more ppl cycling - and in order to achieve that they're giving a financial incentive to do so ... well - that's what they like to call it anyway.

I'm not altogether pro/anti C2W scheme - just that for me it wouldn't work.