Cyclescheme - worth it?

[grellboy]

My employer has just started a cycle scheme. I did one before and saved about 1/3 off the price. This scheme is the actual Cyclescheme. Has anybody got recent experience of buying a bike for the top limit of £1,000 with this method and if so would you recommend it, what with the 7% final payment etc.

 

[dim]

I'm self employed, so the cycle scheme does not apply to me

but even if it did, I would rather buy 2nd hand off ebay .... save up cash and take your time checking out good used bikes on ebay

you get a much better bike for a lot less (I recently bought a brand new Surly long haul trucker for £600 ... a mint condition Giant TCR composite for £675 which included loads of extras including a Garmin edge with cadence etc, spare inner tubes, additional aero bars, CO2 cannisters, Shimano shoes etc etc and a Specialized S-Works Transition with full Campy Chorus groupset for £500 and in spotless condition)

I also took out a Wiggle elite comprehensive cycle insurance for the Giant and S-works and this costs me £17.60 per month (I insured the S-Works for £1250 and the TCR for £1000

all the guys that I know who opted for the cycle scheme ended up buying Boardmans or Carreras from Halfords

 

[vickster]

Depends if you can get a deal and if you want to be beholden to your employer. You save more if a 40% tax payer

Personally I'd buy discounted with cash or interest free

Either way make sure it's properly insured for full replacement value

 

[grellboy]

Depends if you can get a deal and if you want to be beholden to your employer. You save more if a 40% tax payer

Personally I'd buy discounted with cash or interest free

Either way make sure it's properly insured for full replacement value

 

[grellboy]

Apologies if this is a silly question, but would a retailer regard a credit card as "cash", or is using one not so advantageous for them - therefore no incentive for them to do a deal?

 

[vickster]

Apologies if this is a silly question, but would a retailer regard a credit card as "cash", or is using one not so advantageous for them - therefore no incentive for them to do a deal?

I don't think most retailers would offer a discount for actual cash vs a credit card. Cash banking isn't free either. I'm sure larger retailers especially build credit card charges into their pricing model

There's never any harm asking for a deal especially on RRP

You are less likely to get a deal on C2W as retailers get charged for redeeming the vouchers, indeed some will not take them on discounted bikes or will actually add a surcharge (around 10%)

The other advantage of not using C2W is you don't actually have to commute on the bike (although there are plenty who flout that stipulation I'm sure)

Also buying with a credit card offers you consumer protection, which I'm not sure would be as accessible with c2w (I have some recollection of someone having an issue with getting a faulty c2w bike sorted as their employer and not them was the purchaser/owner)

 

[screenman]

I pay a variable rate if commission to Worldpay when I take a card payment, depending on which brand of card you use.

When I car sites I would offer you a discount off of the car price if you used my finance.

 

[bruce1530]

Cyclescheme is great on paper. You get interest free credit for 1 year, and the money comes off your salary before tax and NI are deducted, so you make a substantial saving - especially if you pay higher rate tax. You’ll save about 30% if you are a standard rate taxpayer, and 40% if higher rate.

But - your local bike shop has to pay a commission to participate in the scheme. I believe it’s around 10% for most of the schemes, and closer to 15% for the Halfords scheme. So you will not be able to haggle much on the “ticket price”.

I used the scheme to buy a bike earlier this year, and can’t criticise it - it has worked for me.

 

[JtB]

Through my C2W scheme I sacrificed £1000 of my gross salary (spread out over 18 months) in exchange for a £1000 voucher which enabled me to purchase £1000 worth of bike upfront. Also there was no final payment at the end of the 18 month term. Had I not used the C2W scheme, then £1000 of my gross salary would have left me with less than £600 (after deductions) with which to purchase a bike. For me it was definitely worth it.

 

[samsbike]

It really depends on the scheme. The cycle scheme cut is now nearly 15% so retailers don't do sale bikes on it.

My scheme with my employer is only worth around 20% to a high rate taxpayer and zero to a basic rate taxpayer, this is because we have a finance charge of around 10%, so we actually pay back £1100 if we borrow £1000.

Also cyclescheme are a bit cheeky their online saving calculator omits the year end charge so the saving looks a lot better than it is.

I think if you had a scheme that did not have a finance charge it would make sense. However if I bought a sale bike and got charged the retailer bit on top, it hardly makes sense.

JtB - how did you get out of the final payment bit?

 

[vickster]

OP says he has a 7% final payment

 

[JtB]

JtB - how did you get out of the final payment bit?

After the 18th payment, no further deductions were taken from my salary. I used the scheme twice and each time this was the case. Speaking to colleagues, this was the same also for them. I don't know if this means that on paper my company still technically has ownership of the bikes, but it makes no difference to me.

 

[bruce1530]

not that any LBS would ever do this of course - but hypothetically...

Suppose you are buying a £950 pound bike and £50 of accessories (helmet/lights/safety-related clothing/whatever). Total £1000.

I can imagine a situation where the bike could get discounted to 800, and the accessories were overpriced to 200. Same total. Makes no difference, does it?

Until you remember that the “final payment” is a percentage of the “bike price”, not the “bike + accessories” price...

I did hear rumour of someone who paid £200 for a pump.....

not that any LBS would ever do this of course

 

[Dirtyhanz]

I just got a Tarmac sport for 1120 reduced from 1500 paid the 120 and put the rest on a cycle scheme voucher seems to work for me

 

[vickster]

How is it for wet weather commuting?