NHS cycle to work scheme
I’ve been looking at this and had a quote on a bike costing just under a grand with 12 x monthly payments of £53.66 giving a total of £643.92 when tax deductions etc are taken into account.
Sounds good except…………………………
SmeHci have a commission (according to the supplier and which has to be paid separately by me) of 12.5% AND charge a ‘disposal fee’ of £120 at end of term. So ‘bargain’ of £643.92 suddenly becomes less of a bargain at £888.92.
A few questions arise out of this.
1. Do retailers normally just absorb this fee rather than pass it on to the customer?
2. SmeHci are receiving £245 on the deal. Are they providing the credit, or is it simply an administration of money advanced by the Government?
3. Am I the only one who thinks this ‘disposal fee’ is a bit of a piss take and simply a means of increasing profits as presumably very few ‘disposals’ actually take place and it is a simple transfer of title to the goods.
It’s still a good deal in as much as it saves me over £100 with interest free credit for a year but it strikes me that the real winners in all this are SmeHci, who, depending on how the bikes are funded, are either making a good profit, or a very very good profit with virtually no risk.
There is just something about it which doesn’t feel quite right to me.Posted 5 years agodruidhMember
Well done for actually working it all out and not being seduced by the initial apparent saving.
IMHO, the scheme should now only be considered a way of getting cheap credit. Let’s face it – if you went into a LBS with £1k in cash, you’d be able to negotiate some sort of discount off RRP, or even opt for “last years model” and save even more.Posted 5 years agomikewsmithSubscriber
Normally the end of year fee is the charge to take the bike from the lease to private ownership and the tax implications of that. I can be reduced by extending the hire to 3 years. When I did Cyclescheme the LBS absorbed the 10% fee as that is what they would normally offer in a discount but all C2W purchases were at Full Retail.
Sounds like they are getting a little greedy.
However if you get interest free from the LBS they are paying the interest for you – no such thing as free 🙂
The biggest question is do you need the bike?Posted 5 years agocrikeyMember
A good relationship with your LBS will save you as much and maybe more, and they’ll say your name when you walk in the shop, a bit like Cheers.
The NHS scheme is too little, too late and is run by some wally in an office who gets paid too much for doing too little.Posted 5 years ago
The biggest question is do you need the bike?
That gave me a laugh and of course I don’t need it but when did that ever matter with a new bike!
It isn’t a bike I can get through my LBS and there is no ‘last years model’ to be discounted (no prizes for guessing what I want 😉 )
I think what is really putting me off is that much of the tax savings appear to be going to a private company for doing a bit of paperwork and isn’t in the (presumably) well intentioned spirit of the scheme.
I must be getting a social conscience in my old age! 😆Posted 5 years ago
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