A mate is looking at a £950 hardtail on Cyclescheme.

At the end he has to pay “fair market value” minus whatever he’s paid.

How do they calculate the fair market value?

Cheers

I think after the first 12 months the value is calculated at 25% of the original price. However, you can continue the hire period, free of charge, and the value drops as time passes.

B.

25% after 1 year or £70 admin fee to keep it for a further 3 (I think) by which time the value is £0.

Age of cycle
Acceptable disposal value percentage you must pay

1st number = Original price of the cycle less than £500
2nd number = Original price if the bike was £500+

1 year old…
18%
25%

18 months
16%
21%

2 years
13%
17%

3 years
8%
12%

4 years
3%
7%

5 years
Negligible
2%

6 years & over
Negligible
Negligible

Do what I intend to do – ride it, then leave it in the shed for 6 years.

Hi, Ive just settled my final bill on a £900 Trek plus £60.00 worth of accessories – £30.00

From Cyclescheme

You now have 3 options:
1. Under a separate agreement with Cyclescheme, you pay a small, one-off refundable deposit (3% or 7% including VAT of the equipment value*) and continue to use the bicycle for up to 3 years. The monthly payments are zero. At the end of this period, Cyclescheme refund the deposit if you do not wish to keep the equipment.? This option will cost you £70.00.

2. Take ownership of the equipment by paying Cyclescheme a much higher valuation (e.g., for a one year old bicycle this would be 18% or 25%* of the certificate value in accordance with HMRC requirements).? This option will cost you £250.00.

3. Return the bicycle to Cyclescheme, at your own cost.

on my voucher worth 1k