Cycle to work scheme help

Nasqueron

richardawaller wrote: »

I started a Cyclescheme in February and I'm confused about their claims.

The overall value of the bike and equipment (including the expensive lights that got stolen) is £424.98.and I've been having £35.42 deducted from my wages every month and will through to February when I come to the End Of Hire options when I'll have the option to buy the bike outright at 18% of the original cost. However after 12 months of £35.42 I'll have paid the whole value of the bike and accessories, so with the end of hire payment added on the true cost is about £500 which is inconsistent with the website's claim that you'll save at least 25% on the bike.

Even if I say that £100 of that would've been tax (below average salary) bringing the actual expenditure on the scheme down to about £400 from £424.98 then really £25 is 6.25% of £425. I wanted a cheaper bike but was told that sale items weren't eligible in the scheme and I couldn't afford to buy a bike outright so went for the instalments approach. With hindsight I may as well have got one out of the catalogue and let them add the interest, it'd have been better for me. So I feel like I've been (excuse the pun), taken for a ride. It doesn't seem to be what it claims to be

Richard - compare your take home pay before and after the scheme - you will notice the take home pay is reduced by less than the monthly payment taken out pre-tax - that is the saving. You don't save on the total cost of the bike as that would mean either the store makes a loss or your employer has to pay for it!

Your maths is almost certainly out, having done the scheme twice I can guarantee you that the money that my take home pay was reduced by was about 2/3 of the money taken monthly

Bike shops might get funny with sale stuff but they are eligible, any bike is, just the shop being difficult - the scheme means they get the full payment of the bike from your employer - I got my last one through Evans and used their trade-in offer as well giving me £100 of accessories free!

Also, the 18% of the price thing is misleading, unless you have a really weird scheme, all the major ones give you 3 options - buy out the bike (pointless), extended rental for 2-5 years for a fixed deposit (sometimes nothing, cycle scheme charge 3% of the value for certificates under £500) or return the bike. There is no requirement to pay the 18% in the normal schemes (and the schemes themselves do not recommend this).