Cycle to Work scheme surcharges/commission fees

ianreynolds30
ianreynolds30 Posts: 2
in Road buying advice
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

Comments

  • londoncommuter
    londoncommuter Posts: 1,550
    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.
  • drexel1975
    drexel1975 Posts: 70
    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%
  • londoncommuter
    londoncommuter Posts: 1,550
    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.
  • ianreynolds30
    ianreynolds30 Posts: 2
    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?
  • pauly69
    pauly69 Posts: 101
    Ridiculous. Makes a mockery of the scheme; no way I'd pay a surcharge.
  • londoncommuter
    londoncommuter Posts: 1,550
    ianreynolds30 said:

    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_davo
    super_davo Posts: 1,229
    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.
  • londoncommuter
    londoncommuter Posts: 1,550
    super_davo said:

    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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