Bike to work scheme - fair value?

[nammynake]

At the end of the 12 month rental period, there is the option to buy the bike at fair value (or words to that effect). Can someone tell me approximatley what this will be (e.g. as a % of the original price)?


Thanks

[anonymous-user]

It depends on your employer.

Most are a nominal sum between £1-£10. Generally your employer won't or can't tell you beforehand as it's to do with HMRC's funny tax rules and maintaining tax exemption.

[RobDickinson]

Usualy with a used bike its 50% of the purchase price after 1 year then 10% off pa after.

[lost in espace]

Five percent seems to be the norm.

[anonymous-user]

Does that help?

[nammynake]

el stovey said:

Does that help?

So it's a minimal amount really. Well that information has tempted me even more to buy a new bike. I'm still toying between a new bike and upgrading my current one though - a 2005 Hardrock with v brakes. Frame and bike geometry suits me well, but I can't help thinking that upgrading components (forks and brakes to disc) would give a more enjoyable ride....

decisions decisions...

[mackie1]

Does the frame have the flange for the rear calliper mount? If so upgrading may be better value. The SLX groupset is great value bunch of kit. Add a suitable fork (assuming 100mm then a RS Reba Race would be perfect) and maybe a nice new wheelset and you're away.

To my knowledge the scheme covers bikes and bike related equipment so you should be able to buy the upgrades through the scheme no problem.

Edited by mackie1 on Wednesday 21st April 10:01

[mk1fan]

The scheme covers buying a bike AND equipment. You can't just buy equipment.

As for the original question it depends on the employer. Some don't charge anything as it effectively has a zero value to them.

There are definative rules to the schemes but there are also companies that massage them.

[mackie1]

Just read it again and it appears you are correct. However it's only bending the rules and sticks to the spirit and it's unlikely anyone will actually check/care so it might still be doable.

ETA linky: http://www.dft.gov.uk/pgr/sustainable/cycling/cycl...

ETA again: I think I'm being charged about £20 for my ~£850 voucher after a year. Doing it again now! Anyone know how long cyclescheme vouchers take to come? I want my new bike now dagnamit!

Edited by mackie1 on Wednesday 21st April 10:31

[nammynake]

mackie1 said:

Does the frame have the flange for the rear calliper mount? If so upgrading may be better value. The SLX groupset is great value bunch of kit. Add a suitable fork (assuming 100mm then a RS Reba Race would be perfect) and maybe a nice new wheelset and you're away.

To my knowledge the scheme covers bikes and bike related equipment so you should be able to buy the upgrades through the scheme no problem.

Edited by mackie1 on Wednesday 21st April 10:01

Yes the rear frame section has the brackets for fixing discs (little round eyelet things protruding)/

[wagon and horses]

chatting to the guys at halfrauds when I got my bike to work bike sorted they gave me a good insight...

they all enter into it, get a bike in year 1 and pay the monthly installments, then pay the nominal end of year fee.

then they get a new bike in year 2, selling the bike from year 1 - the cash from this fully covers the payments for year 2.

Result = free bike over 2 years!

[baldy1926]

I had thought of getting one with the met then i heard rumours that they wanted 50% as the value so i thought sod that

[GreatGranny]

baldy1926 said:

I had thought of getting one with the met then i heard rumours that they wanted 50% as the value so i thought sod that

They will not want 50% of the value.

Otherwise you pay, say £600 for a £1000 bike over 12 months and then another £300 at the end totalling £900!

If they do just hand the bike back at the end of the 12 months and start again!

[jaf01uk]

GreatGranny said:

baldy1926 said:

I had thought of getting one with the met then i heard rumours that they wanted 50% as the value so i thought sod that

They will not want 50% of the value.

Otherwise you pay, say £600 for a £1000 bike over 12 months and then another £300 at the end totalling £900!

If they do just hand the bike back at the end of the 12 months and start again!

Our lot just charge 1 extra payment to retain your bike at the end, although they seem reluctant to disclose this at the start. All the people who bought at the start have now finished their schemes and the ones I've spoken to have just paid 1 more month to keep the bike,
Gary

[pdV6]

jaf01uk said:

Our lot just charge 1 extra payment to retain your bike at the end, although they seem reluctant to disclose this at the start. All the people who bought at the start have now finished their schemes and the ones I've spoken to have just paid 1 more month to keep the bike,
Gary

I think that they are not allowed to disclose this at the start without technically forefitting the tax-exempt status of the scheme.

[SoliD]

Think I have my final install payment this month, will be interesting to see what my company takes from me at the end, some of my colleagues who done it the year before said they had not been charged any extra. Might do it again and get myself a lower end road bike for the winter, depends if my company let me take 2 out just over a year apart.

[Allblackdup]

I've just entered into my employers scheme and when i asked how much the final payment would be, i was told no more than my regular monthly amount.

[Dudd]

Place i used to work did it and a few of us did it twice a year apart, Off road and on-road bikes. The company charged us nothing to keep the bikes as it had no value to them and would have cost them money to deal with the bikes had we given them back. i.e; time used selling them/finding a buyer, cost to business for this time, condition/value of bikes.