Bike advice please. compromise for c2w or purchase what I want ?
- Thread starter maltloaf
- Start date
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(unless you want plastic to fit in with the Mamil club crowd 
)
OP
OP
maltloaf
Senior Member
- Location
- Gloucester
To be completely honest I wasn't aware there was a final or balloon payment with the c2w as the site nor any of my companies blurb suggest it so I have asked for clarification over that. Thanks everyone.
The options you have at the end are:
1. Hand the bike back.
2. Buy the bike based on the depreciated value, which depends on the original purchase price. 25% on bike over £500 iirc.
3. Pay the tax on the 25% value which is deducted from your pay over the year.
I chose the obvious, option 3, and am paying £50 back over the year out of my pay. No great shakes at £4.17 per month.
OP
OP
maltloaf
Senior Member
- Location
- Gloucester
I just got confirmation...
Final payment to take immediate ownership of the bike is 25% of the original order amount so £250 on a £1000 bike.
They however do an extension to the lease for 7% of the value which lasts 3 years and at the end the bike is yours, so £70 on £1000
I'm glad I asked now as I hadn't even considered that.Thanks to those that pointed it out.
Final payment to take immediate ownership of the bike is 25% of the original order amount so £250 on a £1000 bike.
They however do an extension to the lease for 7% of the value which lasts 3 years and at the end the bike is yours, so £70 on £1000
I'm glad I asked now as I hadn't even considered that.Thanks to those that pointed it out.
confusedcyclist
Veteran
Which you want to avoid at all costs as if you terminate your employment, or are made redundant you lose the bike after all that you have paid into the scheme. I'll be making the balloon payment on my defy 1 at the end of the 12 months. After the top up fee I will have saved something in the region of £14.12 on the cost of the bike at the time of sale, had I bought it with cash.
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Flying Dodo
It'll soon be summer
Check to see if your work scheme allows you to top up the purchase price yourself, so they provide the maximum £1,000, and you fund the balance, to get the bike you really want.
confusedcyclist
Veteran
Most LBS will accept the difference as a back hand payment, but as your employer technically owns the bike your taking on risk as they are not obliged to sell the bike on at the end of your 12 month rental period. A crafty employer might know your £1000 bike was really worth £3000 at time of purchase and keep it for their own nefarious purposes (unlikely, but possible!)
The real risk lies in the uncertainty that you could get axed at any time and have to hand the bike back, along with a tidy sum to cover the remainder of your rental period. Worst case scenario, you get the sack on month 1 and have 11 x ~£50 montly payments deducated from your last wage or demanded by payroll at a time when you are likely in financial crisis. Moral of the story; avoid debt, especially on a N+1!
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Since you're looking at £500+ bike that puts you in the 7% cost to extend the loan for 3 years (with no payments), this makes the saving 25% (just geeked out and did some excel calculations)
Therefore if you can find something in the sale for 25% or more knocked off and with interest free payments you SAVE over the C2W scheme- that's not overly hard to do to be honest and opens your options up. Also you can get 2 years interest free loans vs C2W only being 12.
I think I may just be about to buy a new bike as I've been waiting for work to do C2W and now realised I shouldn't be using it at all.
Therefore if you can find something in the sale for 25% or more knocked off and with interest free payments you SAVE over the C2W scheme- that's not overly hard to do to be honest and opens your options up. Also you can get 2 years interest free loans vs C2W only being 12.
I think I may just be about to buy a new bike as I've been waiting for work to do C2W and now realised I shouldn't be using it at all.
OP
OP
maltloaf
Senior Member
- Location
- Gloucester
I'm beginning to think you're right. I'm not really at risk of the axe but I might be wanting to resign at some point.
vickster
Legendary Member
Depending on your height / preferences, you could look at something like these in plastic
http://www.paulscycles.co.uk/m7b0s6p4495/GIANT-DEFY-COMPOSITE-2-2012
http://www.paulscycles.co.uk/m7b0s6p5513/CUBE-AGREE-GTC-PRO-2014
http://www.paulscycles.co.uk/m7b0s6p5541/GIANT-DEFY-COMPOSITE-2-2014
http://www.paulscycles.co.uk/m7b0s6p4506/CANNONDALE-SUPERSIX-105-2012 (only if tall)
http://www.paulscycles.co.uk/m7b0s6p5219/CANNONDALE-SUPERSIX-TIAGRA-2013
Rose & Canyon also do some very good deals, as do Ribble and Dolan
http://www.paulscycles.co.uk/m7b0s6p4495/GIANT-DEFY-COMPOSITE-2-2012
http://www.paulscycles.co.uk/m7b0s6p5513/CUBE-AGREE-GTC-PRO-2014
http://www.paulscycles.co.uk/m7b0s6p5541/GIANT-DEFY-COMPOSITE-2-2014
http://www.paulscycles.co.uk/m7b0s6p4506/CANNONDALE-SUPERSIX-105-2012 (only if tall)
http://www.paulscycles.co.uk/m7b0s6p5219/CANNONDALE-SUPERSIX-TIAGRA-2013
Rose & Canyon also do some very good deals, as do Ribble and Dolan
^on the above- Pauls only offer 6 months interest free on special offers (and even then it's only some)- if you wanted 12/18/24 months I'd personally take out an interest free credit card, pay on that, and set up DD to cover costs, - and as they're offering a (dated) Cannondale supersix 105 £2000 down to £1050 I would skip the C2W completely.