"Who owns the bicycle?"
[i]The bike and equipment remain the property of the employer throughout the hire period.[/i]
"Who is responsible for maintaining the bicycle?"
[i]It is the employee’s responsibility to maintain the bike.[/i]
Fair enough - but how come I have to pay for replacement parts?
Brake blocks, tyres etc. Who owns the replacements?
If it was a car owned by the company they'd pay for all spares and replacement parts wouldn't they? So why's it different with a bike?
Well thats an issue you need to take up with your company then. But to be honest you are getting a bike tax free and an interest free loan, so I wouldnt moan about it.
Its good that you are able to access the scheme. Lots of others cant.
And when the hire period ends and you stop paying. Who owns it if the company havnt asked for it back?
[i]Who owns it if the company havnt asked for it back? [/i]
it's still theirs. Just like a car they didn;t specifically ask for they keys for.
Don't ride it then you won't have to replace anything.
But really, that's bugging you? Some people want way too much for free.
The employer owned the original brake blocks, tyres etc. You use them and replace them, so they also own the replacements.
It's like if I use your bottle of milk from the fridge, then buy another bottle, the replacement bottle is yours.
YOU'VE USED MY MILK! I was just gonna make a cuppa............
Too much deliberate ambiguity in the whole scheme - it's time it was put out of its misery and the govt did something useful like dropped the VAT from bikes and exercise equipment.
The missus gets cyclescheme with work, Christ knows why but anyway once id added up the monthly payment and the final purchase fee I could get a better discount as a paying customer.
😆 ask a stupid question.
There's new bottles of milk in the fridge everyday, I've never bought one. 😉
[i]Some people want way too much for free.[/i]
Here, ang on! FREE? Who's getting anything for [i]free[/i]??
Who's getting anything for free??
Your company by the sounds of it. 😆
Same with a lease car.. innit
[i]Same with a lease car.. innit[/i]
Is it? Ok.
So if/when I give the bike back after a year, it would be wrong to put the worn out old bits back on?
If you buy a bike on interest free credit, doesn't the credit company own or have rights to it till its paid off?
From what I was aware the giving it back isn't an option. It's a way to buy a bike not lease one.
Too much deliberate ambiguity in the whole scheme - it's time it was put out of its misery and the govt did something useful like dropped the VAT from bikes and exercise equipment.
Exactly what I've been saying every time this comes up. Lose the VAT on the first £1000 of any bike and it's then a benefit open to all. And the most ridiculous thing of all with the present system is that it gives the greatest benefit to higher rate tax payers.
[i]it would be wrong to put the worn out old bits back on?[/i]
don't see why. as long as they have a few miles in them.
our lease cars used to specify stuff liek minimum acceptable tyre tread on returned cars but they didn't state how much brake pad material needed to be there.
[i]From what I was aware the giving it back isn't an option.[/i]
That's all rather ambiguous - https://www.cyclescheme.co.uk/employers/employer-faqs#/getting-a-bike/faqs/what-happens-at-the-end-of-the-hire-period
if they want my bike back after a year/when i leave.
it aint gonna be worth jack to anyone.
different if it had just sat in the shed all its year like most of the bikes bought.
ill be surprised if it even lasts the year.... keep riding into cars 😀
also in my contract thats signed by me AND the company. it states "if you leave the company within the lease period the total payable in full for the bike will total no more than that of the 12 equal payments agreed to come from your salary"
which contradicts what is said on the cycle scheme website - so its printed out and highlighted and in my folder at home 😉
How it works in relation to some car scheme is irrelevant. This is how this scheme works, either get on board and enjoy what basically equates to free finance or don't.
Sorry sir 🙁
So if/when I give the bike back after a year, it would be wrong to put the worn out old bits back on?
Yes, because your employer bought nice shiny new parts.
What you could do is, as soon as you get the bike, remove all parts and put them in a safe place, fit your own parts, and then swap back when you give the bike back.
But my parts would wear out and then I'd have to replace them at my own expense!
After the first year, use the extended hire period to bring down the buy back price.
These schemes have always had some fundamental flaws TBH, who pays for shagged brake pads is the least of them...
composite - Member
How it works in relation to some car scheme is irrelevant. This is how this scheme works, either get on board and enjoy what basically equates to free finance or don't.
That’s basically it really, do some proper sums, look at how the whole scheme stacks up against financing your own bike purchase by other means.
Factor in the likely end of hire term purchase cost,
consider the convenience of filling out a couple of forms (online?) and getting a voucher Vs applying for a credit card/finance or saving up to buy the bike, and make your own judgement...
But no you don’t own the bike until the hire period is over, and a final transfer of ownership fee has been paid, that hire period and the final fee can vary from scheme to scheme...
slow day at work choosing your new bike then? 😆
Don't get all the fuss with cycle scheme. Get a bike (in my case spent about 2k) payed 80quid for 11 months, then made A final payment of 130 to lease the bike for the next 3 years, at which point I will own the bike
Wife did the same, (much lesser value) and sold it after 18 months!! Even though it is really on lease still :-/ and has now got another better bike through same scheme
Really don't see what the fuss is about
[quote=DezB ]From what I was aware the giving it back isn't an option.
That's all rather ambiguous - https://www.cyclescheme.co.uk/employers/employer-faqs#/getting-a-bike/faqs/what-happens-at-the-end-of-the-hire-period
br />
that's only the way that cyclescheme implement things. Remember, cyclescheme are a PROFIT MAKING COMPANY who offer a way to implement the government "cycle to work" scheme that allows employers to lease bukes to you. WHich brings me to the second point...
It's NOT hire purchase or interest free purchasing. It's NOT your bike, it belongs to the company, and they don't [i]have [/i]to sell it to you. Moreover, if they tell you in advance how much you'll be charged to "buy" it at the end, then it [i]becomes[/i] HP and thus is ineligible for Tax Relief, so negating one of the few remaining benefits of the scheme
But my parts would wear out and then I'd have to replace them at my own expense!
And how is that different to if you owned your own bike?
Dont use a company to run your cycle scheme - do it yourself. Thats what we do, its easy simple and works out very cheap.
Buy the bike from anywhere, I charge the employee gross over one or two or three years. Final value is bugger all as the bike is worn out and they have replaced worn parts.
Easy if you do it yourself, hard if you follow daft rules.
mikewsmith - Member
slow day at work choosing your new bike then?
No, just a slow commute on it! 🙂
Exactly what I've been saying every time this comes up. Lose the VAT on the first £1000 of any bike and it's then a benefit open to all.
Tax free toys for grownups?
Has anyone actullay just given the bike back? just to see what would happen?
youll be charged a disposal fee 😉
I got my commuter on Cyclescheme a couple of years ago but I don't think I'd do it again now. Seems a lot less hassle to just get 12 months credit from Evans or something.
[i]get 12 months credit from Evans or something[/i]
Hmm, at least I had the option of buying from a decent shop, but yeah, I wish I hadn't been limited to £1000 cos canti-brakes are a flippin nightmare!
It is worth bearing in mind that you pay almost the full value of the bike. On my scheme I do not own it until 43 months. I have bought a new bike and no longer want it. It is going to depreciate a lot in value in that time.
With finance though don't you end up paying full value of the bike or worse over the value of it from interest. I got a £900 road bike but ended up just under £600 for it on cycle to work scheme. And that's after the final percentage fee. No hassle doing it either.