Cycle to work - £1000 limit

[okgo]

They have said that they take the 7% just after the end of the 12 month period, not at the end, that way its all done, so no, you're right it costs 7% more than it used to.

In that 3 year period you're not tied to anything, so pretty much its the same as it used to be in that the bike is your after 12 months (assuming they are correct and take the 7% up front as opposed to after).

[oyster]

swerni said:

okgo said:

The long an short of the scheme is it will cost you 7% of the bikes value as a final payment, apart from that its exactly the same.

The final payment was after 12 months not after 4 years so it's not exactly the same.
if you pay off in the same time period as the old scheme it will cost you 25% + vat.

Only if you want to claim full ownership after 12 months though.

If you continue renting it (for free) for a further 3 years then it's 7%.


In other words it makes little practical difference (unless you wanted to sell the bike between 1 and 4 years old).

[anonymous-user]

swerni said:

okgo said:

The long an short of the scheme is it will cost you 7% of the bikes value as a final payment, apart from that its exactly the same.

The final payment was after 12 months not after 4 years so it's not exactly the same.
if you pay off in the same time period as the old scheme it will cost you 25% + vat.

In theory, but why would anybody do that!!. Pay 7% & ride the bike for 3 more years then they sign it over to you. You can leave jobs etc as the contract is with CycleScheme. So pay the &%, ride it, get another £1000 bike for about £500 + that £7%

[okgo]

oyster said:

Only if you want to claim full ownership after 12 months though.

If you continue renting it (for free) for a further 3 years then it's 7%.


In other words it makes little practical difference (unless you wanted to sell the bike between 1 and 4 years old).

and lets be honest, many people will still be selling them in that period righly or wrongly, they're un trackable anyway. They don't ask what you're buying do they.

[anonymous-user]

okgo said:

oyster said:

Only if you want to claim full ownership after 12 months though.

If you continue renting it (for free) for a further 3 years then it's 7%.


In other words it makes little practical difference (unless you wanted to sell the bike between 1 and 4 years old).

and lets be honest, many people will still be selling them in that period righly or wrongly, they're un trackable anyway. They don't ask what you're buying do they.

In the past I have wondered if some 'brand new unwanted gift' £1000 bikes being sold for £700 when a week old are actually purchesed on the scheme (or not as the case may be at that time!). I have obtained 2 bikes through the scheme, still own both, the receipts were made out to me the same as if I had paid with my own cash/cheque...

[okgo]

Of course they are.

As you have said there is no possible way of them tracking it, and for all the scheme know you could have spent that £1000 on inner tubes.

[danrc]

Update time.

The scheme has now been set up at work so the new bike is a go go!!

Thanks for all of the replies so far, here is the info I got from work.

The company buys the bike VAT free, I sacrifice 12 monthly payments from wage before Tax and NI comes off. After 12 months I can pay between 18 and 25% of the initial value of the bike back to the company and the bike is mine. Option 2 is to take it on for a further 2 years with a 3% deposit. Once the 3 years is up, I keep the bike and the 3% deposit is taken as final payment.

If I decide not to keep the bike, I don't pay anything after the 12 months, or after 3 years they will return my 3% deposit.

Anyway, now to decide what bike to get!!!

As I mentioned at the start, the bike has to be bought from here:

http://www.alpinebikes.com/

I know this is above my £1000 limit, but the genesis bikes get a great write up - any thoughts on this?

http://www.alpinebikes.com/shop/genesis/core-40-20...

Any input is appreciated!!