Using Cyclescheme on a sale bike.

dinyull

Currently looking to buy a new bike and was going to use work's cyclecheme.

I have 2 bikes in mind, both are in the end of season sales, but something my director said has me thinking.

She said that if trying to use the scheme on a bike in the sale the discount isn't as effective - if that makes sense?!

Anyone have any experience in using cyclescheme with a sale bike?

jdee84

Dinyull wrote:

Currently looking to buy a new bike and was going to use work's cyclecheme.

I have 2 bikes in mind, both are in the end of season sales, but something my director said has me thinking.

She said that if trying to use the scheme on a bike in the sale the discount isn't as effective - if that makes sense?!

Anyone have any experience in using cyclescheme with a sale bike?

I had an awful bike shop tell me I wouldnt be able to get a sale bike on cycle scheme as they wouldn't make any money then. Which seems absolutely daft to me surely with cycle scheme they get the exact price that they charge you for the bike whether it's on sale or not. The saving is made from less tax deductions from the customers wages.

graeme_s-2

jdee84 wrote:

I had an awful bike shop tell me I wouldnt be able to get a sale bike on cycle scheme as they wouldn't make any money then. Which seems absolutely daft to me surely with cycle scheme they get the exact price that they charge you for the bike whether it's on sale or not. The saving is made from less tax deductions from the customers wages.

If it's with Cyclescheme the company, the bike shop have to pay them 10% of the value of the bike, which is how cycle scheme make their money. I believe it's a similar amount for the other organised schemes. It means they're already losing 10% of the sale price of the bike to start with.

trek_dan

A couple of bike shops I talked to said they'd have to charge me a £100 admin fee if I wanted to buy a bike reduced from RRP. Another said I'd have to pay full RRP. I didn't bother in the end.

g00se

Depends on the shop - ask them. I bought a CAADX in the sales - the shop put the price up by 10% to cover admin - but as it was 40%, it was still a good saving.

ajlowin1983

Most shops charge 10% of the voucher total, so £100 for £1000 voucher. Most shops charge 15% if using a Halfords vouchers which my employer offers.

norvernrob

I bought mine on sale at Evans through CyclePlus, made no difference whatsoever. They even printed out a quote for me to guarantee it at the sale price even if it went back up before my voucher went through.

redvee

A work colleague went for the full £1k a few years back and starting the salary sacrifice payments but didn't get a bike straight away. He went into Halfords and saw a bike he liked and it was a display model so reduced cause of marks etc, asked the orange shirt wearer if there was any further reduction if he took it away today and was told yes. They went to the till to sort out the paperwork then produced his LoC so got a bike for £500 when it should have been a lot more and £500 to spend on accessories as and when he wanted/needed them.

bendip

Wiggle don't add a fee on sale bikes bought through cyclescheme, i bought an eastway road bike last year and a gt grade gravel bike this year both discounted heavily from their rrp, no fees added.

g00se

It seems the larger chains can swallow the ten percent, but the smaller and local shops on smaller margins have to put it on.

redvee

My bike started off as a £1k Merida but they couldn't supply my size so I ended up with a £1100 Forme with rack and guards that the shop didn't charge me for.

warrior4life

My local shop ads 10% on sale bikes if done through cycle scheme.

It hardly seems worth using the scheme when you have to pay £250 directly to cyclescheme to take ownership of the bike at the end of the 12 month period.
Alternatively you can pay £70 and have the bike for three years, at the end of the three years you still have to pay a fee to own it.
If you don't contact cyclescheme they continue to take money until the ownership fee has been paid.

All things considered you save about £65 on a £1000 bike.

rolf_f

warrior4life wrote:

My local shop ads 10% on sale bikes if done through cycle scheme.

It hardly seems worth using the scheme when you have to pay £250 directly to cyclescheme to take ownership of the bike at the end of the 12 month period.
Alternatively you can pay £70 and have the bike for three years, at the end of the three years you still have to pay a fee to own it.
If you don't contact cyclescheme they continue to take money until the ownership fee has been paid.

All things considered you save about £65 on a £1000 bike.

This is misleading. You pay a 7% fee if the bike is over £500, 3% if under. This is a fee to 'hire' the bike. At the end of the three years, you pay nothing. If you don't want to keep the bike after that, you get that fee back and return the bike (which is pretty pointless unless you think the bike is now only worth less than £70!). Cyclescheme won't 'continue to take money until you own it' as they aren't taking money after the first year anyway. They contact you at the end of the hire period and you have to tell them what you are going to do.

The £250 is almost not worth mentioning as there is barely any advantage to anyone in taking it up.

I think that if you are buying a bike that is commonly discounted then the benefits of the scheme are reduced unless you can get the sale bikes through the scheme. I've used the scheme three times - all on bikes which are never discounted in any real sense so the savings have been clear.