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Cycle to Work scheme surcharges/commission fees

If buying your bike from a listed local bike shop through Cycle to Work you will get charged a commission fee/surcharge depending which scheme is used and can vary between 5-15%.

Can this be incorporated into the full cost of the bike so that it is deducted from your monthly salary? Or is it treated as a separate entity?

I want to avoid having to pay this fee from my pocket and have it deducted monthly as part of the total cost (cost of bike + surcharge) but don't know if it is possible or not.

Has anyone using any of the Cycle to Work schemes had any problems doing this?

Thanks

Posts

  • This is up to the retailer but I found that they all seemed to want it in cash. Add that on to the 7% CycleScheme charge you for the end-of life payment and I'm not sure it's that great anymore. Depends on your scheme obviously.
  • This seems to be a new thing that retailers are doing to offset the charge that the provider charges them. I have bought two bikes previously on cycle to work schemes and didn't have to pay this charge. I have heard however that the Halfords Cycle2Work scheme charges other retailers 25% for using the scheme so can fully understand small retailers having to add a surcharge to cover some of this as there is no way the mark up on a bike is in the region of 25%
  • There's also often a hidden charge as if your LBS don't on the face of it pass on the charge if buying a non-sale bike they'd often knock 10% off for cash anyway so ultimately you're paying more.
  • Can the bike shop hide this additional surcharge in the quote for the cost of the bike or do they have to declare it to the provider? And will the provider (Cycle scheme) allow this to be covered as part of your monthly salary deductions or not?
  • pauly69pauly69 Posts: 101
    Ridiculous. Makes a mockery of the scheme; no way I'd pay a surcharge.
  • Can the bike shop hide this additional surcharge in the quote for the cost of the bike or do they have to declare it to the provider? And will the provider (Cycle scheme) allow this to be covered as part of your monthly salary deductions or not?

    Yes they can. It's not hiding it as it's just the price they're charging you for the bike. They will then get bit by the 10% surcharge on the surcharge they've added so might charge you 11% for example.
  • super_davosuper_davo Posts: 662
    Just shop around.
    Some shops pass a surcharge on, some don't. Some don't on full price but do on sale bikes. If that's the case you're usually better off with the sale price + surcharge than full price.
  • Just shop around.
    Some shops pass a surcharge on, some don't. Some don't on full price but do on sale bikes. If that's the case you're usually better off with the sale price + surcharge than full price.

    Unless you then lose your job, end up with hardly any tax relief and have paid more than 100% for a bike......
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