Have I got the biggest bargain ever?
Discussion
After riding DH MTB for years I thought I'd give road cycling a go, I decided on a Planet X pro carbon on the bike to work scheme.
The standard bike is already very good value but due to my complaining at the excessive lead time I got a set of 50mm carbon wheels worth £500 for free!
So basically got the below for £600, that in my book is an absolute bargain. Tell me I'm wrong?
The standard bike is already very good value but due to my complaining at the excessive lead time I got a set of 50mm carbon wheels worth £500 for free!
So basically got the below for £600, that in my book is an absolute bargain. Tell me I'm wrong?
scubadude said:
Been trying to set up cycle-to-work here, its a minefield... Looks like a bargain upfront but its not your bike till you buy it at the end.
It seems to vary, at my wifes place the bike is garanteed to be yours after the 12 months with no further payment (not sure how or why, just how it is). However she was restricted to getting the bike from Evans.With mine I had more choice on where to get it, but not very clear on what happens after the 12 months. Also a very strict limit of £1000.
Dan_1981 said:
I was under the impression that come the end of the 12 month rental you may a nominal fee to keep using it / make it yours?
In some cases the fee isn't what I would term "nominal" also there are option to extend the lease period for further complication, also you need policies for people leaving employment before concluding the agreement, my investigation so far is that most company HR firms don't really understand it fully.scubadude said:
In some cases the fee isn't what I would term "nominal" also there are option to extend the lease period for further complication, also you need policies for people leaving employment before concluding the agreement, my investigation so far is that most company HR firms don't really understand it fully.
Exactly that, HR really didn't know at my place. Didn't fancy paying for it for 12 months and then finding at the end I either had to give it back or pay a fairly extortionate amount to keep the bike.HR suggested I treated it as a lease and simply had a new bike every 12months, which is probably ideal if you are soley buying a cheap bike to ride to work, but not if you're going for a £1000 bike (plus topping up at the shop in cash).
gaz1234 said:
so your effectively leasing the bike?
what about the m sport, lease?
No im effectively getting a 0% loan on the bike and not paying any tax on that figure so 40% saving. (My firm do not charge a fee at the end i beleive they absorb that, I work for a construction company that are very keen to be seen as a "best employer")what about the m sport, lease?
And the M135 is on a PCP which my car allowance covers leaving enough left for tyres etc, not that my car finance arrangements have anything to do with you or this thread!
Jeeez you get some right cash vs finance bellends on here at times
Oh and this picture was taken after id picked it up, i assume the seatpost was up that high when in the workstand.
The scheme also allows for you to "rent" the bike for a further three years. This prevents you from having to pay the 30% "final value fee" - instead, you pay a deposit equivalent to the value of the bike after the next three years, which is something nominal like 4% I think.
To all intents and purposes, you're buying the bike, but technically speaking you shouldn't sell it. I'm sure people do and I'm sure there's no way to find out, though. It's not like they're going to ask for it back at any point.
Pro Carbon looks good and those wheels are great, just be careful in crosswinds if you're not used to deep section tyres (riding behind Eddh, who was rolling on these wheels, over the Severn Bridge on a windy day is an experience I won't forget in a hurry!)
To all intents and purposes, you're buying the bike, but technically speaking you shouldn't sell it. I'm sure people do and I'm sure there's no way to find out, though. It's not like they're going to ask for it back at any point.
Pro Carbon looks good and those wheels are great, just be careful in crosswinds if you're not used to deep section tyres (riding behind Eddh, who was rolling on these wheels, over the Severn Bridge on a windy day is an experience I won't forget in a hurry!)
The final valuation is defined by HMRC - there should be no deviation from it.
Your employer can, however, gift you the bike so you pay nothing at the end, but it will be treated as a benefit in kind and you'll pay tax on it.
http://www.hmrc.gov.uk/manuals/eimanual/eim21667a....
Your employer can, however, gift you the bike so you pay nothing at the end, but it will be treated as a benefit in kind and you'll pay tax on it.
http://www.hmrc.gov.uk/manuals/eimanual/eim21667a....
Most schemes let you pay a 5 or 7% deposit to ride for another 3 years. After that the value is deemed nothing so it's yours.
So the overall cost is under 66% of the initial price for higher rate tax payers. Interest free. Sale bikes allowed. And after 12 months you can get another .
50 a month gets you a new 1k bike every 12 months , if you have the space..
So the overall cost is under 66% of the initial price for higher rate tax payers. Interest free. Sale bikes allowed. And after 12 months you can get another .
50 a month gets you a new 1k bike every 12 months , if you have the space..
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