Cycle to work end of scheme payment

Nasqueron

Matt_22 said:

It says that I agree for £31.67 to be taken from my salary. But is this not the case as I wouldn't pay the vat on the bike?

You pay VAT on the bike unless you have some exemption 

Nasqueron

Matt_22 said:

Nasqueron said:

Matt_22 said:

Is there an option to keep renting after a year?

The scheme you quoted as using offers this yes, it's the same with all C2W schemes

1) Pay the bike off in full (lose savings) and take ownership
2) Extended rental for 3-5+ years (fixed fee / deposit depending on scheme) after which the bike is written off and becomes yours so you save money
3) Return the bike to the scheme or company

Option one would be pay the bike off in full? At the end of the lease?

At the end of the scheme you are allowed to pay the fee and take ownership yes but it wipes out all the savings you made by using the C2W scheme hence why nobody in their right mind would do it - you might as well just get the bike on a 0% credit card 

MacPingu1986

Matt_22 said:

I have just signed up to get a student discount as I have a college email address I can get one. This offers 9% off the value of a bike. I may just go with this. So then own it
 And don't have to pay any large charges if leave. Or paying off the value of the bike at the end of the scheme.

Matt - people have explained to you quite a few times now how the scheme means you get roughly 30% off the PP if you're a base rate taxpayer, or 42% if your a higher rate tax payer. There are no material charges at the end unless you choose there to be (and why would you?), everyone chooses the minimal charge for the extended rental which then converts to ownership.

If it was me - I would go for 30% off the cost of the bike, and a 12 month interest free loan to buy it with, rather than a much smaller 9% deduction.

Herzlos

There's a fairly high fee if you buy the bike after 1 year (about 25%), which wipes out a lot of the savings (but still gives you 12 months interest free), but most people opt to rent it for 3 years where the fee is much lower (about 3% under £500 and 7% above) which still results in a reasonable saving vs paying retail.

It's worth noting that places like Halfords do pretty regular 25% off sales (there's one now), and that the used bike market has really weakened after the covid boom so you can get a decent 2nd hand bike for much less. There's almost certainly a used bicycle charity/co-op in your city that'll sell you a refurbished bike with warranty if you don't want to take the gamble buying from a stranger.