My employer gives us the bike at the end of the 12 month period as a gift. I bought a £1000 bike, (a model which was sold out pre-order by the way, so would never have been discounted) and over the 12 months paid about £82 a month pre-tax, £48 post tax. Total so far £576.
HMRC consider the residual value of the 12 month old bike to be 25%, or £250. As I was given the bike as a gift HMRC make me pay tax on that value, £250 x 40%= £100. I am taxed PAYE, so my tax code was adjusted to pay off that £100 over 12 months.
The total cost of my £1000 bike was therefore £676. Even if I could have found a bike discounted by 32% I very much doubt I would have been able to get interest free credit on it.
SO, it you want a popular bike and want easy monthly payments, then go for it. Don’t forget added benefits that some schemes include a good percentage of the bike’s value in equipment vouchers etc.
ALso, don’t forget that if you are in the Halfords scheme you are not forced to buy a Halfords bike. I have just ordered a 2014 Cube Peloton Race from my LBS.