its free and then you do a zero value transfer at the end of the term.
I would tend to expect a final payment at the end. Unless its an extremely long term or the bike was worth peanuts to begin with there would still be some money to pay.
For the OP.
Cycle to work was always supposed to have a final payment at fair market value. These figures may or may not be accurate any longer but for a bike over 500 quid it was:
25% at one year
17% at 2 years
7% at 4 years
People took the piss for several years until HMRC got a tad bored and started enforcing it.
The normal approach was therefor to still pay for the bike over 1 or 2 years but then have another 2-3 year extension with no charge at which point the cost would drop a tad. although some companies might now spread the cost over all the years.