End of cycle2work scheme - final payment / extended hire

[john]

Considering using employers cycle2work scheme to purchase a new commuter (or some wheels).

Keen to understand what the norm is at the end of the hire period. Having read a few posts elsewhere along with parts of the guidance from the scheme seems possible the bike (or components) will be offered back for an extended hire period and everything squared up after 36 months. However seems to be somewhat vague, tbh not sure if worthwhile.

 

[MatBH5]

With mine (through Cyclescheme), they take the final payment balance after 12 months, but base it on the value at 36 months. So you are all settled up after a year, but avoid paying the ‘final value’ on a nearly new bike. I think theoretically it means the bike remains theirs for another 2 years, under a rental agreement.... but they’re not coming to get it!
I paid that balance myself rather from salary iirc, so not subject to the tax benefit. Might be worth bearing in mind.
This was the 3rd time I’ve done it over 10 years or so... and I’m thinking of going again this year - it’s so efficient! Like getting 12-months 0% finance and only paying half price for the bike too.
hope that helps.

 

[brocklanders023]

Pretty sure my last one was just an extra payment to settle.

 

[MartinYorkshire]

Considering using employers cycle2work scheme to purchase a new commuter (or some wheels).

Keen to understand what the norm is at the end of the hire period. Having read a few posts elsewhere along with parts of the guidance from the scheme seems possible the bike (or components) will be offered back for an extended hire period and everything squared up after 36 months. However seems to be somewhat vague, tbh not sure if worthwhile.

Are you the employer ltd/sole trader? If you are, it's a total an utter waste of time and energy. Asking because forum etc.

 

[CassidyAce]

With mine (through Cyclescheme), they take the final payment balance after 12 months, but base it on the value at 36 months. So you are all settled up after a year, but avoid paying the ‘final value’ on a nearly new bike. I think theoretically it means the bike remains theirs for another 2 years, under a rental agreement.... but they’re not coming to get it!
I paid that balance myself rather from salary iirc, so not subject to the tax benefit. Might be worth bearing in mind.
This was the 3rd time I’ve done it over 10 years or so... and I’m thinking of going again this year - it’s so efficient! Like getting 12-months 0% finance and only paying half price for the bike too.
hope that helps.

This, but if I remember correctly, the bike remains Cyclescheme's, in name anyway, or the first 12 months plus the next 36 months, which is why that final payment, at the end of the first 12 months, is based on the estimated value three years on from that point (not the date you acquired the bike). In other words, the bike becomes legally yours after four years. So, you make monthly payments for 12 months, then you pay one extra final payment, and then you pay nothing more but the bike is not legally yours to sell for a further 3 years.

 

[brocklanders023]

With ours you can either own it after a year or add another 36 months on. Adding the extra means it's worth less so your final payment is lower but you do have the choice.

 

[MatBH5]

Actually that’s familiar. I think the system I used had a default to extend the hire for the cheaper fee, and you had to intervene to end early, pay more etc...

 

[john]

Thanks for feedback.
I am employee, new job offers the scheme.
Think it makes sense, likely sort it in the week

 

[brocklanders023]

You'll certainly save money John, regardless of the final payment. The Ragley Trig I just got cost £1699 and I sacrifice about £80 over 13 pay days. No discounts on new at the moment either so it beats cutting a deal.