Cycle to work scheme

A question about : Cycle to work scheme

We've just again been offered the cycle to work scheme, and I'm tempted to do it. Seriously tempted. My only concern is is it actually worth it, do you save money? What are other people's experience with the scheme? Currently I drive 17 miles each way (on the motorway) to work, although the 'shortest route' distance is only 12 miles (it's just clearly faster by car to go on the motorway, and take the extra 5 miles. Cycling I'd go the shorter route obv) which costs me on average Ј30 a week. If I only cycled in one day a week (doable) I'd save my petrol money and more (the bike I'm looking at is Ј540, which according to their calculations is ~Ј20 pm payments from me) so from that side it's not a worry, it's just would I be better off saving and buying a bike outright? All the signs obviously point to it being better value, my main point of confusion is the fact that the bike is 'hired' and I will have to buy it off them at the end of the scheme. Thanks in advance!

Best answers:

• I don't think there's any doubt that cycling is cheaper if you do actually cycle!
  Also it's a good idea to get accessories, helmet if you want one, a lock for sure, lights (though these can be purchased cheap from dx.com, so perhaps not lights), mudguards, rack, luggage if appropriate.
  I would post on https://www.bikeradar.com/forums/viewforum.php?f=40052 for more advice.
  There's some more detail here regarding hire implications:
  https://www.bikeradar.com/gear/articl...-scheme-18360/
  Short version is that you don't need to worry about it.
• I have bought 3 bikes on the cycle-to-work scheme over the years. You "hire" the bike as a technicality, the final payment to "buy" the bike is normally Ј5.
  The only thing you need to consider is that if you want a decent commuter you'll pay Ј300-Ј400. Accessories (lights, mudguards, locks etc.) may come to Ј100-ish. You'll then pay, say (for the sake of argument) Ј600 over 12 months. You will then receive back all the tax on those earnings, so if you pay 20% tax (just as an illustration) you'll pay Ј50 a month and get Ј10 rebate. This can be a really good deal, but you'll need to check one thing.
  Sometimes you can get a bike at a 30% discount, and if you shop around you could get a lock cheaper than instore. However, the more tax you pay the better the deal so if your partner or a close friend is a high tax payer you could buy one through them and just pay them the money upfront. (I got my partner his bike and he saved 40% off a bike with an already good price so it made total sense for us to do this, it's a bit against the rules but still within the spirit though - it gets him off public transport and exercising and it's not like we're exactly making a profit out of the deal).
  Hope this helps.
• I'd say spend an evening doing some boning up on prices. I've had Specialized bikes and always been happy, but my partner got a Giant and it's so light and cost about half what mine did so I'm really rating them right now.
  If you can get a credit card with 0% spending and maybe cashback too you could possibly do better than you'd get with the cycle-to-work, but it's a tough time out there for retailers and you could get last year's model and cycle to work from a shop willing to play ball so that extra 20% off and interest free over a year could work out better.
  Whatever you do, for me taking up the scheme was one of the best things I've done.
• You say you already have a mountain bike, if its o.k and not a downhill rig, it will easily do 25 miles per day!.This is not a long way on a mountain bike at all.
  What you need to do is put slicks on the wheels and it will go fast enough and you will save yourself a fortune. The forks should lock out, if not get yourself a rigid fork from On One and fit it yourself.
  You dont need to get a hybid or road bike for this distance your not doing the Tour de France
• I'd love to see the figures for people who have bought a bike on the Cycle to Work Scheme and then actually used it, even once, to cycle to work!
  It's a tongue in cheek title
• I bought a Ј1,000 Specialized Sirrus which worked out about Ј650 for me with the cycle to work discount.
  The lock, lights, mudguards and pitlocks added up to about Ј200 but now it's fully paid off and I'm using it for its second year, and I pay about Ј200 a year in servicing and bits.
  However.... I cycle an average of 100 miles a week, and every now and again do a big run (London to Brighton or something).
• Cycle to work used to be worth it, however since the treasury rules on the payment for the token value of the bike were changed a couple of years back - typically now expect to pay around Ј50-Ј100 rather than just a few pounds - its usefulness is debatable.
  Our company offered a CTW scheme, however we had to use Halfords. After the treasury rules were changed, it worked out cheaper to negotiate deals with local bike shops than go through this.
  Our company withdrew from the scheme and now gives financial incentives for people who cycle, which has been highly effective in getting people out of their cars. They fund this by leasing the car spaces they are not using to long term car storage company.
• I must warn of my experience with cycle to work.
  Bike cost Ј700. tax savings over the year (Ј16 x 12 months) were Ј191. Therefore bike has cost me Ј508. Not bad but having just paid final month i'm given three options
  1. Pay another one off payment of Ј46. Total savings now Ј145 and i still do not own the bike for another 3 years and then i will be faced with these similar choices again.
  2. buy bike for Ј161 which, over a year means i pay Ј669. a saving of about 5 percent of the purchase price. pretty crap considering it was billed as saving 32% of the price through tax.
  3. return the bike to them at my own cost (more than Ј46 i imagine).
  Logic dictates i take option 1 but i am flabbergasted at how i was led to believe a nominal fee would enable me to buy the bike from my employers and hence make the savings above (191 - nominal fee). What happens now is the cycle to work extortionists take back ownership of the bike from your employers and then proceed to bend you over in the manner detailed above. Now i know how the cycle to work scheme made several million pounds profit last year.
  I would think long and hard about taking up this scheme again and would suggest considering as an alternative saving for a while and buy a bike that is new but from last years or the year before range before they got replaced by this years. that way you will get a good spec bike for less and it will still be new to you. Alternatively use any of the 0% finance options or take your chances on e bay other auction websites. Credit where credit is due this great business model but surely the savings make this closer to a hire purchase agreement than salary sacrifice incentive.
• Can people be in a cycle to work scheme without having to hire purchase a new bike?
  A mileage allowance arrangement?
• I've always wondered what any company would do if you decided to return the bike. They wouldn't want it, or the hassle of reselling it on the open market. I doubt they'd want to hire it to someone else (possible legal problems re: maintanence).
  If you offered them a nominal Ј5 I doubt they'd turn you down just to be rid of it.