Cycle to work scheme - is it worth it?

Prothet_of_Doom

If you are new to cycling, don't let anyone tell you you can't get a decent commuting bike for less than £500.

I bought a Hawk Cycles 'mountain' bike in 1990 for £95. I've used it sparodically over the last 23 years, but upped my use the last 2 years to at least 20 miles a week, and I had to replace a few bits over the years, but apart from chain and rear sprockets, and more road friendly tyres (Puncture resistant), I've hardly spent a thing on it. Oh a new back wheel after an unfortunate accident.

This bike retails at about £140 now, so with lights, a helmet and mud gaurds budget £200.

If you turn out to be not as serious as you seem you've lost less cahs, and if you turn out to be serious, you'll always have a spare bike.

Guesthouse

WiggyDiggyPoo wrote: »

What an odd thing to say!

C2W can be a great help for the type of people on here, e.g. those with strict budgets and unable to take credit/have savings to buy a bike outright.

Speaking from experience I was able to get a bike whilst on my DMP that did not affect my repayments that I would have otherwise been unable to buy.

In real terms this was because I didnt have the cash up front at the start of my DMP to buy a bike, indeed I was on my dads old bike for a few months until I got my first C2W bike.

It was cheaper than public transport (£25 p/m vs £50 p/m) so I could actually pay more towards my debt by using C2W!

I think what's being got at, is that if you're paying for a shiny new bike simply because you can get a shiny new bike (whatever it's value) but you're not using it are you saving? You also have to look at things like the health benefits, saved commuting time(if the distance is right) and things like travel passes you might otherwise use.

I agree with you that for many folk it's a great way to get a decent bike. I used it to get a bike I simply wouldn't have bought outright with my own cash.

WiggyDiggyPoo

Guesthouse wrote: »

I think what's being got at, is that if you're paying for a shiny new bike simply because you can get a shiny new bike (whatever it's value) but you're not using it are you saving? You also have to look at things like the health benefits, saved commuting time(if the distance is right) and things like travel passes you might otherwise use.

I agree with you that for many folk it's a great way to get a decent bike. I used it to get a bike I simply wouldn't have bought outright with my own cash.

Ah, in that context yes I agree with tara747 and yourself (apologies to tara if I misinterpreted ) and yes if you're not going to use the bike, whats the point!

M.Johnson_2

WiggyDiggyPoo wrote: »

You will be accepted as this is one line of credit that isn't affected by a poor credit file, but as to how being on low tax/NI contributions will affect it I'm not sure.

In my simplistic mind I guess your savings will be less (as you don't pay as much tax/NI) than a higher rate taxpayer but you can regard it as an interest free loan for the bike?

Yes I view it as an interest free loan. If the bike gets stolen or something and I leave my job and stop making payments, who foots the bill?

WiggyDiggyPoo

M.Johnson wrote: »

Yes I view it as an interest free loan. If the bike gets stolen or something and I leave my job and stop making payments, who foots the bill?

Stolen is easy, you have to keep making payments and depending on the scheme will either still have to make a final payment or get a replacement bike if your employer wants it back at the end of the term. This is a very good reason why insurance is important.

Leaving differs from employer to employer, and is worth checking in advance, for me if I leave I need to settle any remaining payments (plus final payment) out of my final salary.

Mr_Singleton

I'm guessing that those on a final salary pension have to make additional allowances on the cost benefits?

A friend was made redundant after using this scheme and 'lost' most of the final payment he was owed by the company as settlement for the bike which put his finances in a mess for quite some bit after.

WiggyDiggyPoo

Mr_Singleton wrote: »

I'm guessing that those on a final salary pension have to make additional allowances on the cost benefits?

A friend was made redundant after using this scheme and 'lost' most of the final payment he was owed by the company as settlement for the bike which put his finances in a mess for quite some bit after.

Hmmm :undecided

A deduction would have been made from his last salary payment as he was leaving the company, that is normal for the scheme.

But it should not have been deducted from any redundancy payout especially a statutory one.

Are you sure your friend got his facts right?

callum9999

I know I'm just being tight but my £99 hybrid from Argos has been fine for me. It presumably takes a lot more effort to ride than a proper road bike but I just see it as a bit of extra exercise!

My commute is only 11 miles round trip though so I'm sure its worth spending extra for those of you doing 20+ miles daily.

PlumValley

It's worthy as it's burning my calorie.

TheStig1

i think everyone has missed a trick here.
At the end of the 12 or 18month hire period, you have the option to pay a 3% (for bikes purchsed for under £500 originally) or 7% (for bikes over £500) fee to the scheme for extended use over another 3 years with NO further montly salary payments. After this (4 years in total) they will let you keep the bike with nothing further to pay. Cheapest option by far.

Type 'Evans Cycles' and 'Transfer of Ownership' into google for further info.