So..... cycling

[Kitten]

not needed now

[leowyatt]

They do have calculators on the scheme website and stuff like evanscycles

[Kitten]

Brilliant. *deletes rambling and unnecessary post*

[lostkat]

Thanks Kitten, very helpful Ours isn't the Halfords cycle to work one which is probably where I'm getting confused. You pay the hire amount via salary sacrifice for the first year like yours, then if you want to keep the bike for a further 3 yrs you pay a "refundable deposit" (didn't read the refundable bit before) of between 3-7%, THEN they decide whether they want to let you keep it or not. The website gives no commitment of this because if they did, it'd be classed as benefit in kind and it'd be taxable. It does look as though you can keep it more often than not though. However, if they can't charge you over the original market value then I'm happy.

Had a look at the Evans cycles calculator and it's clear how much I'd be paying now.

Cheers ears

[Kitten]

Oh good am glad it helped

[LeperousDust]

My mate got bitten by the cycle to work scheme a while back with his Spec' Allez. I'm not sure he'd be touching it again! I'm still of the opinion it doesn't save you that much money for the risk incurred... I'm plucking numbers wildly here (of course ) but i'd say way over half of the people using the scheme would be better off just buying a cheap bike when there are some decent sales on or a decent second hand one at a similar affordable price point.

[Kitten]

How did he get stung? You can't be charged more than you would have paid in cash, and in most cases you save around 30%. If he left, he'd probably be made to pay full price remaining inclusive of VAT, but as I said before it cannot cannot cost you more than the original selling price. If they try that, (which the arrangement says they can't anyway) you just give it back, which would be a lot more hassle for them. I genuinely don't understand how you can be stung, or how there's any more risk than buying on HP. There's about 25 people in my office at various stages of the scheme, must often having saved around 3-400 quid on their £1k bikes. I guess time will tell! Anyway, stop making me nervous, its done now

Went out on it last night for a few hours, aching like a bugger, (arse feels like I've been repeatedly paddled ) but I felt ten years old again. Amazing!

[LeperousDust]

Honestly I don't exactly know the details, but I think he was working for an outsourcing company and then "left" to join the company he was working (outsourced) for anyway. Somewhere along the line he got screwed over, not to mention I have definitely heard of people not being able to pay the remainder after completion.

I dunno, I just like buying a bike and having it mine, HP isn't something I enjoy! I guess if you're sure you'll be in the company for the next XX amount of years then it's alright.

Obviously though the headline prices they advertise you're buying at are usually about 20-30% over and above though? Since you have to buy through certain retailers. If you buy the same bike the next year or in an actual sale then you're likely to easy lop off 15% to begin with which is closing the gap on the saving the government is offering.

A little like saying you can buy a car with work, but it can only be a new one and only at this major retailer. You know you're not going to get a particularly great market rate!

[lostkat]

Get yourself a ladies saddle if you haven't already Kitten. They're much better

Alex - Leon is worried about the potentially not getting the bike at the end bit. I can't see why they'd want to keep it because a 4 yr old used bike surely can't hold that much value, but you just don't know.TBH for a £260 bike, I think we might just dump it on the credit card and be done with it.

[Kitten]

Kate, it's a ladies' bike, does that not matter?

I'm buying a gel saddle on payday. Will be the best money ever spent!

Re the C2W thing Kate, I've never heard them keep the bike, not even when people left - as far as I can see, it's purely a tax thing re gifts/taxable benefits etc. Is there no-one you can ask in your HR department?

Guy I work with just bought his for £50 final payment - a Boardman carbon fibre frame that cost him around 1k. He's worked out it cost him around £700 and it's 1 year old. With yours being 3 years, not sure if I'd want to to do that on such a low price, but first, work out how much interest you'll pay over the period it takes to pay it off. With a lesser priced bike it's even more of a bargain to go through C2W unless you can get interest free credit etc.

Alex, the price I got mine for was about £100 reduced from a few months ago when I was first looking, and I can't see it anywhere else (on line or otherwise for a lesser price), apart from Ebay, which I wouldn't consider for something costing so much. There's no way I could afford to fork out anything on a bike at all otherwise, as there's other, more important things I need my money for.

The final payment thing, until 2010 was only allowed to be 5% of original price which 12 months after the purchase is excellent - so I guess people must have been buying WAY out of their price range and I think that's the problem. If you leave, you lose the tax break, so you have to pay that back (up to the value of the remaining payments then it's up to them if there's any payment on top). Buy as you would be able to cash, and you won't have a problem. I know I keep saying it but if you can't be asked to pay more for it than you would have paid cash - and you can argue 'fair market value' if you feel you need to, then I can't see how you can lose out.

I may well be eating my words in a year though, we shall see!