Cycle2Work and Halfords

MrGrumpy

Huge Member
Location
Fly Fifer
Ok I`m going to buy a bike through cycle2work but I`m limited to £500. The bike I really fancied was an extra £50, do you think Halfords could do me a deal as such ? Its really a bit of a pain becuase I know some folks using other schemes were able to add to it, although I reckon its not really allowed !
 
You should ask. If you don't ask, you'll never know!!!
 

skwerl

New Member
Location
London
technically you can't add to the company contribution because of the legal issues around the contract. remember the comp owns the bike and leases it to you. If you pay 10% of the pruchase cost then you'll both own a share, blah, blah, and it gets complicated.
I was able to top up when I got my bike but that was 2 years ago. Most suppliers have closed that option now.
Halfords are also unlikely to offer a deal because of the cost to them of bikes-for-work. It reduces their margin and leaves no room for negatiation on price. They might offer a discount if you agree to buy X amount of accessories though.
 

skwerl

New Member
Location
London
I seriously doubt that. I imagine that the % sales they make through bike-2-work is pretty minimal. They'll make more money on Carrera bikes but it's still not going to be much of their total P&L.

Of course, if you can demonstrate otherwise please do. Otherwise please don't discount other people's comments as "Rubbish"
 

vernon

Harder than Ronnie Pickering
Location
Meanwood, Leeds
Sorry, maybe rubbish was the wrong word.

Halfords wouldn't do the scheme if there wasn't profit in it for them. Why else would they?
There might be a profit in it for them but their margins might be squeezed. I have seen a handful of posting in other forums claiming that, while bike dealers are participating in the scheme, they do so a list price and not at their advertised discount prices.
 

Keith Oates

Janner
Location
Penarth, Wales
Every company has to make a profit or go 'bust'. In the case of Halfords it is just the same and of course when we say people make x% profit we forget their overheads etc. that have to come out of that!!!!!!!!!!!!!!!!
 

skwerl

New Member
Location
London
I'm sure they are making money out of it. But as a % of their overall profit I imagine it's pretty small. The thing is, with companies of that size, you chase every profit you can. Sometimes companies even run loss-leading ventures because of secondary revenue, e.g. Halfords get repeat custom for spares, servicing, accessories etc.

As vernon says, the cost to smaller companies is significant. Condor had to add a profit margin to the list price of my bike because the normal profit is wiped out when they sell bikes-for-work. Not sure if that's to all suppliers or if it was just Halfords (my bike was ordered through Halfords and supplied to them by Condor). The net cost to me is still going to end up at about 65% of retail so I don't care about the increased price.

Mr Paul - your comment is spot on. It's unlikely anyone will get a discount because they're already saving up to 41% on list so it's safe to assume most customers aren't going to try and haggle for further savings. Still, if you rock up at Halfords and say "I want that bike but my Company cap is 500 quid" they may discount the price to get the sale. Depends if they think you're bluffing or not.
 

alicat

Legendary Member
Location
Staffs
Mr Grumpy

Have you tried asking your company if they will raise the limit? My company limits the cost to £1000 which is the limit at which they need a consumer credit licence. A higher limit would get round your problem nicely and give you the opportunity to add some accessories to the deal as well.
 

DLB

Senior Member
Would somebody whose whose bought under this scheme give me some idea of how much of a bargain the bikes are.

I'd be interested to hear how much you paid per week etc and how much you had to pay at the end of the agreement.
 

skwerl

New Member
Location
London
DLB said:
Would somebody whose whose bought under this scheme give me some idea of how much of a bargain the bikes are.

I'd be interested to hear how much you paid per week etc and how much you had to pay at the end of the agreement.
I can't tell you how much I'll pay at the end but it's s'posed to be around 5% of purchase value.
My bike was £1130. The scheme paid £1000 and I paid the rest. I then paid £50 quid a month (interest free!) for 12 months. Come October next year my 3 years will be up and I'll be offered the chance to buy the bike for approx 60 quid.
Net cost to me is 600+60+130=790, for a bike that cost 1130
 

DLB

Senior Member
skwerl said:
I can't tell you how much I'll pay at the end but it's s'posed to be around 5% of purchase value.
My bike was £1130. The scheme paid £1000 and I paid the rest. I then paid £50 quid a month (interest free!) for 12 months. Come October next year my 3 years will be up and I'll be offered the chance to buy the bike for approx 60 quid.
Net cost to me is 600+60+130=790, for a bike that cost 1130
your costs make sense to me but not the 3 years??? If you pay £50 for 12 months surely the bike will be yours after a year? Or am i missing something here?
 

Lisa

New Member
Cycle2Work

I'm an employer reviewing who we use for Cycle2Work in our flexible benefits scheme next year. Last year we used Halfords, and no one took it up. Are there any other schemes you recommend? Does it make a difference that you have to buy the bike in Halfords rather than an independent shop? Thanks.
 

AcademicX

New Member
Location
East Yorkshire
Lisa

Halfords claim to be able to obtain bikes from most major suppliers (certainly Specialized, etc.). They essentially act as the delivery point for the supplier (you just collect the bike from your nearest Halfords store).

They also have a relationship with Planet X who supply a respected range of road & cross bikes. Their sister-company, On One, supply mountain bikes.

I got a Planet X Uncle John crossbike via my employers Cycle2Work scheme.
 

thejonesy

New Member
Location
In a house
I bought a PX bike through the Halfords scheme, it's a bit of a hassle getting it sorted between the two companies, took about five weeks in total to get the bike, Halfords only invoice for the bikes they buy on your behalf twice a month. I pay just over 50 quid a month for 12 months and then I have to pay a nominal amount at the end of the agreement to take ownership of it. I would recommend the scheme as long as you aren't in a hurry for a bike! There's an e-mail contact on the Halford CTW website and they are pretty good at responding to questions etc.
 
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