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Post by r0b1et on Jul 31, 2014 13:08:22 GMT
Not done much research, but my employer have finally decided that perhaps if they really want to encourage cycling, cycle to work schemes might help... so have started on up.
But it is very restrictive compared to what I assume others are, For a start, the bike HAS to come from Halfords (argh!).
But the thing that worries me most is that you don't own the bike, at all, even at the end. In fact in our scheme, you have to give it back to Halfords, who might decide to sell it to you (for whatever price they like). In essence, you end up paying the full price of the bike minus tax, to hire it for a year. Despite the reputation uni's have, my experience is that they will squeeze every penny they can so I can't see them "donating" the bike to you after the year. There were also rumours they would be checking that the bulk mileage being done was commuting (lord knows how they could check).
Is our scheme just a token pointless rubbish one and other employers do better? Or are they really a bit of a dubious deal?
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lfc383
Peloton Rider
Posts: 72
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Post by lfc383 on Jul 31, 2014 13:17:46 GMT
Mine at work isn't much better, there is a wider choice of suppliers though.
First year you pay off cost of bike minus tax in 12 instalments, then have three options
1) Give bike back, 2) Pay a one off fee of approx 18-25% of original price of bike to purchase bike outright and take ownership. 3) Pay a "deposit fee" of 3 - 7% of original price to hire the bike for a further three years. At the end of the three years the bike becomes yours. If you don't want the bike at the end of the three years you get the deposit back however you need to deliver the bike to the cyclescheme company.
To be honest I was going to go for a bike through the Cyclescheme but couldn't be bothered with all the hassle and on paper couldn't see that the saving was going to be that much.
Friends who work for Royal Mail say theirs is much easier, pay bike off over 18 months then it becomes yours.
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Post by goffski on Jul 31, 2014 13:40:29 GMT
I'm getting the wife to get it for me through her work. Applied for a £1000 voucher, this is paid back over 12 months (think it's just short of £700 what you pay back). After 12 months it's a percentage of the cost to make the bike yours or you can hire it for another 3 years, apparently they don't seem to bother too much with this fee. I intend to use the full £1000 plus pay more on top of this, it won't really be much of a saving in the end but i do get to pay over 12 months (or should i say the wife does ).
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duffer
Peloton Rider
Posts: 126
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Post by duffer on Jul 31, 2014 14:09:23 GMT
My employer signed up with www.cyclescheme.co.ukFor my T3 (value £299.99) I sacrifice £25/month from my salary, which equates after tax to about £15 - £17. If I've understood correctly, after 12 months, I can pay another 3% of the bike's value (£9), and keep it for another 3 years, after which I think it probably becomes mine (I'm not entirely clear on that last part). So basically, I think my bike will have cost me around £215 for four year's use. My employer gets a slight tax benefit too, I think. I'm happy with that deal personally. The real expense is in all of the other kit and upgrades!
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Post by fatmanona5a on Jul 31, 2014 14:16:26 GMT
For me C2W worked with a 5A from Decathlon.
Borrow £500 for bike + odds n sods.
Repay (Salary Sacrifice) £38.46 per 4 week pay period (13 payments) from my gross pay, this reduces the tax and NI I pay!
On a £500 scheme, my extended rental is £15 (3%).
Interest free borrowing, spend £500 repay c.£300, seemed a good idea to me!
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Post by fatmanona5a on Jul 31, 2014 14:18:21 GMT
My employer signed up with www.cyclescheme.co.ukFor my T3 (value £299.99) I sacrifice £25/month from my salary, which equates after tax to about £15 - £17. If I've understood correctly, after 12 months, I can pay another 3% of the bike's value (£9), and keep it for another 3 years, after which I think it probably becomes mine (I'm not entirely clear on that last part). So basically, I think my bike will have cost me around £215 for four year's use. My employer gets a slight tax benefit too, I think. I'm happy with that deal personally. The real expense is in all of the other kit and upgrades!
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Post by fatmanona5a on Jul 31, 2014 14:20:53 GMT
My employer signed up with www.cyclescheme.co.ukFor my T3 (value £299.99) I sacrifice £25/month from my salary, which equates after tax to about £15 - £17. If I've understood correctly, after 12 months, I can pay another 3% of the bike's value (£9), and keep it for another 3 years, after which I think it probably becomes mine (I'm not entirely clear on that last part). So basically, I think my bike will have cost me around £215 for four year's use. My employer gets a slight tax benefit too, I think. I'm happy with that deal personally. The real expense is in all of the other kit and upgrades! I'm sure that the bike is yours after the extended rental finishes.
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duffer
Peloton Rider
Posts: 126
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Post by duffer on Jul 31, 2014 14:24:23 GMT
I'm sure that the bike is yours after the extended rental finishes. Even better. Although by then it's entirely possible that either me or the bike will have worn beyond economic repair.
It'll be me.
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Post by KiwiBeard on Jul 31, 2014 14:25:41 GMT
Not done much research, but my employer have finally decided that perhaps if they really want to encourage cycling, cycle to work schemes might help... so have started on up. But it is very restrictive compared to what I assume others are, For a start, the bike HAS to come from Halfords (argh!). But the thing that worries me most is that you don't own the bike, at all, even at the end. In fact in our scheme, you have to give it back to Halfords, who might decide to sell it to you (for whatever price they like). In essence, you end up paying the full price of the bike minus tax, to hire it for a year. Despite the reputation uni's have, my experience is that they will squeeze every penny they can so I can't see them "donating" the bike to you after the year. There were also rumours they would be checking that the bulk mileage being done was commuting (lord knows how they could check). Is our scheme just a token pointless rubbish one and other employers do better? Or are they really a bit of a dubious deal? Sounds like it all depends on the what the intention of your company is at the end of the year. I haven't really looked into it at all tbf, but the way described here isn't how I envisioned it to work.
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Post by fit4fifty on Jul 31, 2014 18:44:19 GMT
I have just completed my first year with cyclescheme. Just waiting for the options. Mine may be complicated by the fact that I intend to resign in 5 days for a new job.
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Post by robertsims on Jul 31, 2014 19:58:31 GMT
Mine forces me to buy off only Halfords or Evans...hence why I didn't use it!
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Deleted
Deleted Member
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Post by Deleted on Jul 31, 2014 20:20:36 GMT
I've heard today that my company might, only might, be starting this up. Would only be with Halfords which is a bit naff as we can already get 13% savings with them (3% cashback and vouchers 10% off face value). The boardman bike look good (ish) value but I'd rather have the option to use the voucher in more outlets.
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Post by r0b1et on Jul 31, 2014 21:01:32 GMT
Sounds like they are incredibly variable. Giving back to Halfords doesn't sound very good to me, plus I'm not exactly a high earner and ours isn't salary sacrifice (so I'd still pay NI), it actually looks like in the end it works out MORE EXPENSIVE than buying the old fashioned way.
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Post by goffski on Jul 31, 2014 22:11:26 GMT
Mines come today, looks like i'm bike shopping this weekend
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Deleted
Deleted Member
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Post by Deleted on Jul 31, 2014 22:33:18 GMT
Am I missing something here, but if you pay a one off price for a three year extended rental, how can it be a rental for another three years? If it's a one off payment, doesn't it technically become yours the second you pay that rental fee? As you've paid the rental up front you can't default on it and have the bike repossessed
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