hackbike 666
Guest
Aye,when you can save up a bit more and buy a new one.
ebay is weird
- Thread starter stephenjubb
- Start date
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Aye,when you can save up a bit more and buy a new one.
If it's a grand new, that is the ideal price anyone who has access to a Cycle To Work scheme. £1,000 would (depending on personal tax circumstances) end up costing around £50 a month for 12 months, which means they are paying the same as your 2 year old model and spreading the payments interest free.stephenjubb said:
I'm not sure what proportion of the target market for a Super Galaxy would be doing that, but I'd think that bike at that price would be just the ticket for someone who is genuinely thinking of a bike for a longer commute.
If it's a grand new, that is the ideal price anyone who has access to a Cycle To Work scheme. £1,000 would (depending on personal tax circumstances) end up costing around £50 a month for 12 months, which means they are paying the same as your 2 year old model and spreading the payments interest free.stephenjubb said:
I'm not sure what proportion of the target market for a Super Galaxy would be doing that, but I'd think that bike at that price would be just the ticket for someone who is genuinely thinking of a bike for a longer commute.
Norm said:
As you say it depends on personal circumstances: you only pay only £50/month if you are paying income tax at 40 per cent - most people aren't.
Don't forget 'salary sacrifice' also means that you forego employers' pension contributions on that money (assuming they make any!) - so the savings may not be quite as brilliant as they first appear.
But yes - the 60 per cent of the new price is a lot. I might consider paying that if there was a guarantee, but otherwise I think 50 percent would be my limit.
The other reason why it didn't sell was that it was listed as local pickup (although he later says he will courier for an extra £50).
Norm said:
As you say it depends on personal circumstances: you only pay only £50/month if you are paying income tax at 40 per cent - most people aren't.
Don't forget 'salary sacrifice' also means that you forego employers' pension contributions on that money (assuming they make any!) - so the savings may not be quite as brilliant as they first appear.
But yes - the 60 per cent of the new price is a lot. I might consider paying that if there was a guarantee, but otherwise I think 50 percent would be my limit.
The other reason why it didn't sell was that it was listed as local pickup (although he later says he will courier for an extra £50).
patheticshark
Well-Known Member
- Location
- Clowndon
You're also asking over the odds for postage and the listing doesn't show posting as an available option at the top, only in the text itself.
patheticshark
Well-Known Member
- Location
- Clowndon
You're also asking over the odds for postage and the listing doesn't show posting as an available option at the top, only in the text itself.
Some schemes pass on the VAT savings to the employees, so there's 15%. Even without that, take into account the savings on employee's NI (11%) for those earning up to the UEL and people paying at basic rate are looking at savings of over 30%. With the VAT saving, that will be over 45% and higher rate tax payers earning over the UEL could be saving well over 50%.andym said:
I wanted to be brief as this was about ebay rather than the Cycle To Work scheme. I can go further into it if you like.
The savings are from 30% to 55%, I'll stand by my earlier post.
Some schemes pass on the VAT savings to the employees, so there's 15%. Even without that, take into account the savings on employee's NI (11%) for those earning up to the UEL and people paying at basic rate are looking at savings of over 30%. With the VAT saving, that will be over 45% and higher rate tax payers earning over the UEL could be saving well over 50%.andym said:
I wanted to be brief as this was about ebay rather than the Cycle To Work scheme. I can go further into it if you like.
The savings are from 30% to 55%, I'll stand by my earlier post.
I bought a bike through Cycle-2-Work and didn't get the VAT back (I'm not sure whether that's because the rules have changed since then or simply because my employer pocketed the VAT). The scheme is definitely a bargain if you can also get back the VAT.
Fair point about saving on the National Insurance, but the point remains that if you're a basic-rate taxpayer the scheme may not offer as much of a saving as as it first seems - especially if it ties you into a more expensive retailer. If for example you were with an employer that offered the Evans Ride2Work scheme the asking price for a Super Galaxy would be £1449. This compares with £999 from Spa Cycles. So buying through Ride2Work might not be such a great idea.
For basic tax rate payers working for employers who won't refund the VAT, it definitely doesn't mean a 40 per cent saving - especially if you are lucky enough to be in a decent pension scheme. As with everything else it pays to shop around and do your sums.
PS I agree with the fundamental point that the cycle2Work scheme is inevitably going to have a negative effect on prices for nearly-new bikes. Also I definitely think that the Cycle2Work scheme (in all its varieties) is a good thing - but so are secondhand bikes, if the price is right.
Fair point about saving on the National Insurance, but the point remains that if you're a basic-rate taxpayer the scheme may not offer as much of a saving as as it first seems - especially if it ties you into a more expensive retailer. If for example you were with an employer that offered the Evans Ride2Work scheme the asking price for a Super Galaxy would be £1449. This compares with £999 from Spa Cycles. So buying through Ride2Work might not be such a great idea.
For basic tax rate payers working for employers who won't refund the VAT, it definitely doesn't mean a 40 per cent saving - especially if you are lucky enough to be in a decent pension scheme. As with everything else it pays to shop around and do your sums.
PS I agree with the fundamental point that the cycle2Work scheme is inevitably going to have a negative effect on prices for nearly-new bikes. Also I definitely think that the Cycle2Work scheme (in all its varieties) is a good thing - but so are secondhand bikes, if the price is right.
I bought a bike through Cycle-2-Work and didn't get the VAT back (I'm not sure whether that's because the rules have changed since then or simply because my employer pocketed the VAT). The scheme is definitely a bargain if you can also get back the VAT.
Fair point about saving on the National Insurance, but the point remains that if you're a basic-rate taxpayer the scheme may not offer as much of a saving as as it first seems - especially if it ties you into a more expensive retailer. If for example you were with an employer that offered the Evans Ride2Work scheme the asking price for a Super Galaxy would be £1449. This compares with £999 from Spa Cycles. So buying through Ride2Work might not be such a great idea.
For basic tax rate payers working for employers who won't refund the VAT, it definitely doesn't mean a 40 per cent saving - especially if you are lucky enough to be in a decent pension scheme. As with everything else it pays to shop around and do your sums.
PS I agree with the fundamental point that the cycle2Work scheme is inevitably going to have a negative effect on prices for nearly-new bikes. Also I definitely think that the Cycle2Work scheme (in all its varieties) is a good thing - but so are secondhand bikes, if the price is right.
Fair point about saving on the National Insurance, but the point remains that if you're a basic-rate taxpayer the scheme may not offer as much of a saving as as it first seems - especially if it ties you into a more expensive retailer. If for example you were with an employer that offered the Evans Ride2Work scheme the asking price for a Super Galaxy would be £1449. This compares with £999 from Spa Cycles. So buying through Ride2Work might not be such a great idea.
For basic tax rate payers working for employers who won't refund the VAT, it definitely doesn't mean a 40 per cent saving - especially if you are lucky enough to be in a decent pension scheme. As with everything else it pays to shop around and do your sums.
PS I agree with the fundamental point that the cycle2Work scheme is inevitably going to have a negative effect on prices for nearly-new bikes. Also I definitely think that the Cycle2Work scheme (in all its varieties) is a good thing - but so are secondhand bikes, if the price is right.
It is a good saving, if it is in your scheme. I'm just trying to get my scheme changed, using the excuse that only one person has used the scheme so dropping the VAT would be a further incentive.andym said:
Indeed, that was all I was trying to suggest. That the price (at £600) was 40% less than a new bike, that is in the same ball park as many people would be saving, so I used it in my illustration.andym said:
It is a good saving, if it is in your scheme. I'm just trying to get my scheme changed, using the excuse that only one person has used the scheme so dropping the VAT would be a further incentive.andym said:
Indeed, that was all I was trying to suggest. That the price (at £600) was 40% less than a new bike, that is in the same ball park as many people would be saving, so I used it in my illustration.andym said:
