Bike for the missus (Explain cycle to work to me)

[chris-red]

Right I built my misses an old rod braked road bike to get her out cycling with me a bit, she loved old style basket on the front bike as was looking at sub £200 modern takes on that. I convinced her to get an actually vintage bike as it would be cheaper and better built. She was also VERY nervous on the brakes after a incident involving a Butlins hire bike,a hill, a shoulder bag, and stitches in her chin.

Anyway, Betsy (as the bike became known) has been fairly bulletproof and my missus has the bug as she realised it can help her accomplish 2 of her favourite things in one go, getting fitter and saving money. She is also a lot more confident on the bike and is beginning to hit the limits of the bike. So she is looking for something else. She also has the cycle to work scheme at work.

Now I always assumed Cycle to work was a loan for a bike you pay off over a year. However it seems it is actually a period of hire. Can anyone explain it to me? This is the link she sent.
https://www.cyclescheme.co.uk/

It says they will own the bike despite her paying the purchase cost (less tax) off over a year then she will have to continue hiring it.

Also we have been looking at bikes. She sent this one over...

https://www.leisurelakesbikes.com/content/images/thumbs/0047095_whyte_carnaby_womens_hybrid_bike_2015.jpeg

https://www.cyclesurgery.com/whyte%20carnaby%202015/town-bikes/bikes-components-bikewear/fcp-product/57736

Looks pretty good to me.

What do you think? the bike will be used for a 15 mile commute.
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Well, you know what they say. If you want to save the world, you have to push a few old ladies down the stairs.
Skudd:- Perhaps she just thinks you are a window licker and is being nice just in case she becomes another Jill Dando.
WANTED:- Fujinon (Fuji) M42 (Screw on) lenses, let me know if you have anything.

[chris-red]

https://fbcdn-sphotos-e-a.akamaihd.net/hphotos-ak-xpa1/t1.0-9/561311_10151512562733476_1671905299_n.jpg

Betsy and my 70's Racer.
____________________
Well, you know what they say. If you want to save the world, you have to push a few old ladies down the stairs.
Skudd:- Perhaps she just thinks you are a window licker and is being nice just in case she becomes another Jill Dando.
WANTED:- Fujinon (Fuji) M42 (Screw on) lenses, let me know if you have anything.

[BrownTrousers]

I believe there are various similar but different schemes so you need to read the T&Cs carefully.

Some the ownership will pass to you at the end of the hire period and some there may be an optional nominal fee. It could be your option or your employers. Also look into what happens if you leave employment before the year is up.

On balance I think most of these schemes do look good value and would be interested to hear other responses. I changed jobs recently and may soon have the chance to do this myself too.

Sorry not a huge help.
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Bikers make great organ donors - add your name to the register
Ducati Multistrada 950 | Triumph Tiger 800 XR | Honda CBR500R | Yamaha YBR 125 Custom

[ripzay]

Can only explain how mine worked, which was through work and evans cycles

I chose a bike, they gave me a voucher for the full amount.

the voucher basically showed evans how much i had agreed, nothing more.

The hire agreement for the first 12 months was with my employer.

Over the following 12 months i took a 'salary sacrifice' (came out of my wage before tax)

Following the inital 12 month hire agreement, ownership of the bike returned to evans cycles, who then offered me a different hire agreement, which was £0 per month for 24 months, or the option to purchase the bike at market value.

At the end of this 24 month hire agreement, the value of the bike is depreciated to £0, and i can purchase the bike from evans for £0, the bike is mine.

TLDR: you don't own the bike until 3 years later, but you pay what you first agree for the bike - which includes a VAT free purchase, and you pay your installments out of your salary before PAYE tax & NI comes off.
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Current: 2005 KTM SuperDuke 990
Previous: 1996 Suzuki Bandit 600
Previous: 1994 Suzuki GSX-R 400

[bamt]

That's pretty much how it works. It's convoluted because it is tied up in the tax system, rather than that the scheme operators are being awkward. They'd prefer it was more straightforward.

In the first few years it ran it was even worse, because legally they couldn't tell you what the bike would cost you to buy at the end of the hire period. The extended period (beyond two years) is now done at minimal cost (sometimes a nominal amount, like a fiver), because that way the bike is worth nothing on the books so can be disposed of in any way that the company sees fit with no tax implications.

[Llama-Farmer]

When you say the voucher is for how much you agreed... is it literally that... you haggle on the price for the bike you want until you come to an agreement?


I just thought it was a tax free price of the RRP.



If you purchase the bike from Evans (or other) "at market value" after the first year, does that then not mean you'd end up paying more than the total RRP including tax?



Sorry for what may be silly questions, but I've not yet looked into it as cycling (or even motorbiking) into work is not really a viable option 90% of the time.
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Current Bike: 1999 Honda CB600 FX Hornet
Next Bike: I want a CBR-RR. And I want an F800 GS-A. And a VFR 800. Can I have all 3?
Dream Bikes: Honda VFR750R RC30, Honda NSR500, Ducati 996 R

[bamt]

You agree your price with the shop, then get a voucher for that amount (plus any allowable add-ons, like lights, luggage etc.). The voucher is for the amount that you'd pay the shop.

Most shops won't haggle on RRP for cyclescheme, and some actually add on a surcharge as the scheme providers take about 10% profit out of the deal.

What you end up paying back isn't the full amount of the voucher. If your company is good, they may swallow the VAT (because the bike goes onto their books as an asset). You then pay back out of pre-tax earnings, which is why it works out cheaper as the government effectively puts your income tax towards buying the bike.

[ripzay]

no, you pick a bike (some schemes will allow for accessories - helmet, lock, drink bottle etc), give your employer the list / total and they give you a voucher which indicates to the retailer the full amount.

your employer works out the VAT deduction and the salary sacrifice / benefit in kind stuff.

EDIT: R.E. the market value - it's the market value of a 1 year old bike.. I was lead to believe that they HAVE to offer you the option to purchase the bike every 12 months as part of the scheme.

so my situation:

• I chose a Specialized Hardrock Disc 29er, total RRP £550
  
• I paid 12 installments of £40ish (tax free) - <£500 total
  
• I was offered the opportunity to buy the bike @ approx £400
  
• I declined, and opted for the 24 month hire at £0 pcm
  
• In april 2015 i will be offered to buy the bike again.. i guess @ approx £200
  
• I will decline
  
• In april 2016 i will be offered to buy the bike again.. i guess @ <£10
  
• I will accept, total paid for the bike £510
  

Oh, i also got a £25 voucher when I phoned evans to buy the bike, so topped up my purchase with a lock and a pump.. just because.
____________________
Current: 2005 KTM SuperDuke 990
Previous: 1996 Suzuki Bandit 600
Previous: 1994 Suzuki GSX-R 400

[Villers]

Mine was pretty similar. It didnt work out as a lucrative saving, which I was led to believe.

Bike was about 890 pounds
Monthly payment of 89 pounds x 12 = 1068 before tax
I'd reckon at around 50 quid off my monthly wage after tax (so now 600 pounds)
They have offered me a full payment of 265 or a deposit of 65 for 36 months

To cap it all off by the time they had sorted out my voucher I ended up with last years bike. So for the total cost I woulkd probably have been better off with a long term interest free credit card and haggling the balls off them.

Wont be taking it out again
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RS125 > CBR6 > SV650S > ZX636R > GSX1300RZ Hayabusa > 06 RSVR Mille > SV1000S > Street Triple 765 RS

[G]

When I did it about 8 years ago (when it was still fresh) it ended up pretty nicely as the shop gave us 20% off the RRP of bikes and accessories. I never paid out for the bike at the end - helped by leaving the company.

That bike is just the sort of bike I'd suggest for someone looking for a bike to 'ride around', with most on the road.
Except that mine is a good bit higher spec and I paid £330 new for it a couple of years ago. Ok, that was down from £630 or so, but leave it a couple of months, keep an eye on hotukdeals and there should be plenty of deals.

Oh and now just noticed no front mech.
Said £330 charge scourer has 50/34 and 11-34, which is actually pretty useful when you've got some stuff piled on it and are going up steep hills.
If she's not bothered by going fast down hills, or going up steep hills it shouldn't be an issue.

[chris-red]

[chris-red]

Anyway this is redundant as she has been told applications had closed untill next year.
____________________
Well, you know what they say. If you want to save the world, you have to push a few old ladies down the stairs.
Skudd:- Perhaps she just thinks you are a window licker and is being nice just in case she becomes another Jill Dando.
WANTED:- Fujinon (Fuji) M42 (Screw on) lenses, let me know if you have anything.

[Drew]

[G]

Keep an eye out for the sales in a couple of months.

Can always take a front mech off. Or just leave in central of a triple and not actually change gear .

[sickpup]