Cycle to work scheme - bike build!

craynerd

Hi guys, over the next two weeks my works have opened a cycle to work scheme but it is locked to using wheelies cycle solutions online! I fancied a cube over everything but they don't stock cubes.

I've been riding an old Scott for years and my wife thinks I should treat myself to a new bike but even at the low costs, I'm having to stick to £400 budget on the cycle to work scheme...despite it being low monthly outgoing, I just don't want more going out of my wage. I have £200 saved and I'd love to put that to it but you aren't allowed to make cash/card payments - the full value must be put on the bike!

I just want to know if this is a bad idea but how about using the cycle to work scheme to spend £400-450 on parts and then perhaps saving another hundred to spend £300 cash on a frame? I've never put a bike together from scratch but I am a hobby engineer so moving parts and mechanics is a strong point http://www.raynerd.co.uk

Your thoughts would be really welcomed! Good idea, bad idea? What sort of components should I go for or could I afford and how would it compare to spending £600 directly ona. Prebuilt bike?

I'm 6'3" and would like a 29er, I was looking at the Cube Acid or Cannondale trail 29 5 £599. I could probably stretch to the Cannondale trail 29 6 built and ready on the cycle to work scheme. I don't know how a hand built bike would compare spec wise to the price say of the cannondale trail 6 which I could buy or the 5 that I could t really afford on the cycle scheme.

Chris

Chunkers1980

AFAIK, you need to buy a whole bike under the scheme as it causes the tax man issues as to who owns what bits.

njee20

Correct, tecnhically you have to buy a complete bike, or safety accessories. You can't use it for bits. That's not to say that some shops won't let you, but technically that's not allowed.

You have money saved up - get yourself a 0% credit card and buy the bike you really want, you'll have more room to barter as C2W costs the retailer money - Cyclescheme take a 10% cut, no idea about other suppliers. So a shop can give you 10% off the bike and still not lose out versus selling it on C2W.

tarbot18

Depends what scheme you use but cycle2work now allows you to just buy parts rather than a bike also most lbs will let you put money towards it above and beyond the amount allowed , i know ive done it 3 times through 3 different retailers one of those halfords.
If your after a 29er have a look at the boardman pro great bike for the money cant be beaten on spec for the price.

njee20

No it doesn't, not to say some stores may not bend the rules, but you're not supposed to:

Cycle2Work FAQs:

Can I add my own money to the value of an LoC in order to get a more expensive bike?
Halfords cycle2work does not allow employees to 'top up' or add to their Letter of Collection (LoC) using their own funds in-store, as both employee and employer would then jointly own the bike. This could create a potential conflict of interest when it comes to the end of the hire period.

What equipment is available?
Cycles and cyclist's safety equipment are included. The tax exemption defines a "cycle" as "a bicycle, a tricycle or a cycle having four or more wheels, not being in any case a motor vehicle" (192(1) of the Road Traffic Act 1988 (c52.)). An electrically assisted pedal cycle can be included under the scheme.

You can buy just 'safety equipment', or a bike plus safety equipment, but not some forks and a pair of wheels, for example.

Like I say, not to say you won't find stores willing to do it, but you're in breach of the rules.

craynerd

Hi, thanks for the advice.

I had it confirmed that we do have to purchase from cycle solutions if we want to take part in the scheme.

Cube can not be purchased and neither can boardman!

Any other suggestions :-(

cooldad

What do they sell in that range?

njee20

Yes we could be here a long time guessing if you don't tell us what you can get!

chrisw333

If you have to pay RRP at wheelies, you may be better off taking your money elsewhere with a 0% card as suggested elsewhere. At £600 you have a budget for a good bike from Halfords or Decathlon.

craynerd

Sorry!! I forgot my login details and then couldn't reset the password,,, sorted now!

So I'm still confused as I have to make up my mind by a week Tuesday.

Here is the cycle solutions website, which is just a modified version of Wheelies Bike shop:
http://www.cyclesolutions.co.uk/bikes/c1

And here is Wheelies website, I believe I can actually get anything they stock so in theory anything from either site: http://www.wheelies.co.uk/c1/bikes.aspx

I'm still massively dissapojnted they do not stock cube bikes and I'm struggling to let it drop! I have however been looking at the Cannondale trail 5 - £599 which is the top of my budget.

Some of you have suggested purchasing elsewhere on a credit card but that would be far too expensive - £600 works out about £20 a month loss of wage on the cycle to work scheme but would equate to nearer £50 on a credit card.

I'd really value any suggestions or opinions.

craynerd

Cannondale mentioned - http://www.wheelies.co.uk/p66077/Cannon ... -Bike.aspx

cooldad

Not sure how you're calculating that unless you are on the maximum tax rate, but you'd be better off spending half as much on something like this
http://www.decathlon.co.uk/rockrider-53 ... ctFeatures

craynerd

I've just put the details through cycle solutions calculator and apparently £600 over 18 months works out at £19.33 a month, the bike ends up costing £347. In my opinion, that seems a decent deal. I don't know much about credit cards but if I had £600 and tried to pay it off over 18 months before the 0% interest was lost then I'd be paying £33.33 a month and would of course pay the full £600. I must be doing something wrong in my calculations - so how is using a credit card a better deal than the cycle to work scheme?

Is the Rockrider a better bike than the £600 Cannondale?? I've been reading these forums for days now and lots seem to be said about the decathlon bikes... When I was in to riding when I was a kid, Cannondale, Giant, Marlin, Specialised and such were always considered the bikes of choice! - have these shop only brands by decalalon and Halfords really caught up??

cooldad

You pay more for the name, but it's not the make - Canondale make some good bikes, but they are expensive. That particular one has a pretty rubbish bits.
With the scheme you also have a final payment of around 25% of the original value, or an option, I think of extending it by a few more years.
But being in a higher tax bracket helps.

craynerd

Thanks cooldad, the final payment that my work requests is £10 as a nominal purchase fee. Many many bikes have been purchased on the scheme over the years and I've checked, that is what we will pay. So to me, the cycle to work scheme offers a huge saving in a good bike. I'm also still wanting to go with it as it offers a low monthly payment which is all I can afford right now.

I've appreciated all thoughts an this so far in anyone has any suggestions as to bikes suitable for no more than £600 on the cycle solutions website, I'd appreciate the advice.

Chris

m1tch666

craynerd wrote:

Thanks cooldad, the final payment that my work requests is £10 as a nominal purchase fee. Many many bikes have been purchased on the scheme over the years and I've checked, that is what we will pay. So to me, the cycle to work scheme offers a huge saving in a good bike. I'm also still wanting to go with it as it offers a low monthly payment which is all I can afford right now.

I've appreciated all thoughts an this so far in anyone has any suggestions as to bikes suitable for no more than £600 on the cycle solutions website, I'd appreciate the advice.

Chris

Until HMRC get wind of your company and enforce the '1 year value' when you're half way through the scheme, then your company decide to take that as a one off payment rather than deduct from following years tax allowance or extend the hire period which drops your saving from 23% to 2% as happened with my company. Nobody will ever entertain cycle to work with our company again.

cooldad

I'm a big fan of the cycle to work scheme, but not buying a substandard bike.

chrisw333

I understand your maths, but the point your calculation misses is you may get a bike for, say £400, from elsewhere that would be somewhat better than a £600 bike from Wheelies. (Particularly Halfords once you start adding in the various discounts available). A common misconception is that the original RRP has anything to do with the quality of the bike - some bikes are shocking value and others great value.

However, if you don't want to go down that route, then post up links to a few that take your fancy and people will let you know their thoughts.

njee20

Furthermore, if you go in wielding your 0% credit card you may get 10% off the bike, as the retailer aren't paying out to the C2W scheme. Tips the finances somewhat.