Cycle to work scheme “no guarantee of ownership”

12 Posts

Hi all,
I am looking into getting a new bike through the cycle to work scheme. Originally I thought this was a no brainer as it would mean paying for the bike out of my pre-tax income. However, my employer is using Vivup as their chosen provider of the scheme. Vivup’s FAQs state that there is no guarantee of ownership of the bike. Specifically, it states:
Q. What happens at the end of the twelve‐month hire period?
This sounds as though I will be paying the value of the bike over the 12 months hire period, then potentially have the bike taken away and own nothing. This doesn’t seem like much of a benefit to me. I’ve enquired about whether the hire costs are any cheaper than Cyclescheme, waiting to hear back but I doubt it is. Cyclescheme is so much clearer!
If it was a cheaper bike I would just buy outright but I’m considering an e bike that’s a bit pricey. What do people think? Any chance I have misinterpreted? Is it still worth getting a bike through this scheme?
I am looking into getting a new bike through the cycle to work scheme. Originally I thought this was a no brainer as it would mean paying for the bike out of my pre-tax income. However, my employer is using Vivup as their chosen provider of the scheme. Vivup’s FAQs state that there is no guarantee of ownership of the bike. Specifically, it states:
A. The Disposal Fee is the charge for the collection and disposal of the bicycle at the end of the loan period as there is no right to ownership through the Cycle to Work Scheme. Bicycles may be sold for a Fair Market Value at the end of the loan period under a separate agreement, although this cannot be guaranteed. The Disposal Fee paid may be offset against the Fair Market Value due. If you have any queries about what happens after the loan scheme has finished please contact Vivup on 01252 784540 or email: [email protected]
Q. What happens at the end of the twelve‐month hire period?
A. SME HCI Ltd (Vivup) will own the bicycle during the entire hire. Vivup will contact you at the end of the scheme to detail your options which, under a separate agreement, could include:
Extending the hire period. After 2 years (3 including the original hire) ownership of a £1000 bicycle can be transferred to you. If the original purchase price was less than £500, this can be actioned after just 1 year (2 including the original hire). Bicycles over £1000 can be transferred within 6 years, depending on their initial value.
Taking ownership for fair market value.
Returning the bike – if you decide not to keep the bike SME HCI Ltd (Vivup) will arrange for it
to be collected from you and recycled. Other information to be made aware of:
No guarantee of offer of ownership can be given to employees at any point before or during the hire period.
This sounds as though I will be paying the value of the bike over the 12 months hire period, then potentially have the bike taken away and own nothing. This doesn’t seem like much of a benefit to me. I’ve enquired about whether the hire costs are any cheaper than Cyclescheme, waiting to hear back but I doubt it is. Cyclescheme is so much clearer!
If it was a cheaper bike I would just buy outright but I’m considering an e bike that’s a bit pricey. What do people think? Any chance I have misinterpreted? Is it still worth getting a bike through this scheme?
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Are you going to follow up this...
It’s a great scheme, and if you can make use of it I think that you really should.
I found this on HMRC FAQs so I think you’re right that they are just covering themselves
That's one case I've heard of, and only one, so I think it's rare, but can happen.
It's worth me pointing out that not all shops charge this fee but the scheme my company chose only used shops that did.
Age of Cycle
HMRC Fair Market Value
Original price of bike under £500
Original price of bike over £500
The bike I want is a Ribble and it looks like they accept cyclescheme vouchers, so I can hopefully just go into the store and get them to set it up for me.
Thanks everyone. It sounds as though there is potentially some risk of throwing my money away if Vivup want the bike back but it’s unlikely to happen and buying through the scheme would save me some £££!
The ownership wording is a red herring though, it's a common misconception that people use against cycle to work to say they don't "own" the bike so don't want to use the scheme but that's like saying never buy a car on PCP or a house with a mortgage