Cycle to work scheme

[Vonhelmet]

I'd have to see the maths on that to figure out what's going on.

It's nothing to do with the popularity of cycling - the deal has not changed.

 

[touch]

For me - £1000 bike.
£71x12 monthly payments.
£70 (for 3years) or £250 (total ownership I think it was.

So:-
£71x12 = £852
+ £70
= Total of £922.

Used to be a good deal... like everything since the increase in popularity of cycling the amount saved has gone down....

That doesnt take into account the tax savings though?

If you pay the monthly payments before tax, then you've effectively reduced your income by £922, so you'd save around £200ish off your tax bill.

 

[MrMoonX]

It's the only way to buy a bike, why wouldn't you? You can still negotiate prices with the bike shops, the cycle scheme just give you a £1k voucher which you pay back pre-tax.

£71 pm = £51 post tax you're basically paying about £600 for £1000 worth of bike and gear

 

[Gribs]

I'd have to see the maths on that to figure out what's going on.

It's nothing to do with the popularity of cycling - the deal has not changed.

It certainly has, or at least the rules regarding what happens at the end of the year have been clarified. It's used to be almost universal that you just kept the bike after the year and made no more payments.

As for getting discounts you're very unlikely to get anything as at least 10% goes in fees to the voucher provider. For the Planet X bike mentioned above you'd save about £140 minus whatever the scheme charges you at the end of the year as opposed to just buying it outright.

 

[FrenchTart]

Not all bike shops charge 10% but certainly a good number do (and they tend to be the ones that are cheaper, such as PX). The rules did indeed change fairly recently to screw people over with an extra charge at the end.

Despite all that it's still often worthwhile though.

 

[Vonhelmet]

The only change has been to do with residual values, insofar as they can't give you the bike saying it has zero value, which is fair enough, because it doesn't. That change is a few years old, though. Even accounting for that, it is still always a better deal. I defy anyone to show me how it can't be.

 

[FrenchTart]

The only change has been to do with residual values, insofar as they can't give you the bike saying it has zero value, which is fair enough, because it doesn't. That change is a few years old, though. Even accounting for that, it is still always a better deal. I defy anyone to show me how it can't be.

As already said (at least kind of), the only time it would be a better deal to get something else would be if there was a sale on somewhere and they either weren't part of the scheme or (which is more often the case) they won't let you get sale items on the scheme.

Generally speaking I agree with you and I think using the scheme is worthwhile over 90% of the time.

 

[Vonhelmet]

As already said (at least kind of), the only time it would be a better deal to get something else would be if there was a sale on somewhere and they either weren't part of the scheme or (which is more often the case) they won't let you get sale items on the scheme.

OK, but outside of the bike being available on the scheme at place X, versus available at a massive reduction at place Y, it will always be a better deal. Even then, that's assuming zero cost of finance and zero benefit from spreading the cost.

 

[FrenchTart]

OK, but outside of the bike being available on the scheme at place X, versus available at a massive reduction at place Y, it will always be a better deal. Even then, that's assuming zero cost of finance and zero benefit from spreading the cost.

Agreed. It's a bit of a stretch - it's possible, just highly unlikely

 

[Mr Jones]

That isn't what Mr Jones has posted. He's posted a saving of 150 on just over 1000,

I quote £150 base on the difference between having £82 taken out monthly and the tax saving I get for that x 12 (I also have pension and Student loan takening out of gross, but that's constant...)

Not sure if I'm doing it right, either way, it's saving for me as

a) I got my bike from Evans Cycles when they were doing massive dicsount for Fuji bikes

b) I paid it over 12 months and didn't felt that much out of pocket as it came straight out of my pay

c) I know I'm staying at the company for at least 1 year, so never worried about paying it off full at any point.

 

[Jonny ///M]

You always save money even if you go with the most expensive option of ending the agreement after the year is up.

Depending on your tax bracket you will be

£1000 £1000
-20% tax -40% tax
-12% NI -2% NI
£680 £580

The fee "Deposit" at the end is 7%(under £500 it's 3%) of the bikes value so £70 for both which means saving 25 or 35% overall. If you decide not to extend the agreement then you still save 7/17% overall on a £1000 voucher and pay it monthly.

I've had the discussion about the the percentage being taken from the agreed value of the bike after the first year but most folk seem to be paying it on the RRP.

 

[eXist]

someone above has already explained but anyone who says c2w isn't worth it doesn't know what their talking about....

we are one of cycleschemes top 20 stores in the UK and can assure there is no better way to buy a current model ( 99% of all sales ) bike from any bike shop.

 

[Mr Jones]

Depending on your tax bracket you will be

£1000 £1000
-20% tax -40% tax
-12% NI -2% NI
£680 £580

Ah... that's where some of my savings missing then, my N.I is the same both before and after the cyclescheme. Wonder if there something is missing on my PAYE...