Cycle to work scheme, final payment

[MHeadling]

Had a nice e mail through saying my final payment is due on my bike I got through the cycle to work scheme which is £250.

Are there any good ways around this??

[ch!3f]

thats a tad cheeky id have ashumed the payments would have all been the same amount.ive just gone self employed and been looking in to it myself.

i would suggest ringing them and explaining your not in the situation to pay that amount of money but you want to pay it im sure they will take a couple of installments for it.

[GRIFF55]

Doesn't your boss pay that to keep bike. Then you pay him?
I looked into it a bit, but saved more buying an older year bike!

[mattr]

I think you can extend the lease by up to two years, for free. Then the £250 becomes zero.

Do some googling elsewhere. Most of the cycling forums (and money saving expert) covered this in some detail when final payments first started being asked for, and then again when the terms changed.

Final value used to be "one additional payment", then it changed to "market value less monies paid" or something. But there are ways round it.

[KRob]

Mark, depends which scheme you are on.
When I did some research recently, different schemes offered different end clauses. As mentioned there should be the option of your employer taking on the ownership of the bike so you don't have to pay anymore - but you still don't actually own the bike It would belong to your employer.

Then after whatever the period scheduled by the bike scheme (2/3/4 years or whatever) your employer can then pass the bike onto you as the market value it would then hold wouldn't require a final payment.

There's a table online somewhere that gives the final payment ratios of the different schemes but I can't find it at the moment - sorry.

[knighthawk]

I looked into this a few years back

The scheme that was offered to me was, you agreed to pay a monthly fee and after the set term you owed the final payment.

Now I was told I could either pay the final payment and the bike was yours !
or
You could trade the bike back in to right the final payment off but had to take out a new agreement on a new bike, effectively you leased the bike for a set term then lease a new one and so on.

Hope this explains it

[MHeadling]

I'v read on a few website that the govermant changed the final % , here is a paste from my link on the e-mail.

Cyclescheme Ltd is pleased to confirm that you have now completed the hire period for the cycle to work scheme provided by your employer. Your employer has opted to give you the opportunity to buy the Equipment you have hired and has transferred the ownership of the Equipment to us so that we may handle the purchase arrangements.
You must complete one of the below options by 27/10/2012.
You now have 3 options under the end of hire process:

• Extend the use period by signing an Extended Use Agreement with Cyclescheme Ltd.
• Purchase the Equipment by paying the market value.
• Return the bicycle to Cyclescheme Ltd.

For further details of each option please click on the relevant button below:
Extend the Use Period £70.00
(one off payment) This is a one off continuation deposit which allows you continued use of the equipment without transferring ownership.
Purchase the Equipment £250.00 This is a market value payment and ownership will transfer to you upon receipt.
Return the Bicycle At your own cost. You have the option to return the bicycle to Cyclescheme Ltd and no market value payment will be due.

[mattr]

Pay the 70 quid, continue using it. Don't think there is anything else to pay after that.

Until they lose interest and you then get the bike for nowt, i think its two years.

[MHeadling]

Yes been thinking about the £70 payment, how iv read it you pay the £70 then no payments for 35 months and then they review the final fee on the bike.

Unless iv got it wrong?

[mattr]

Originally Posted by MHeadling

Yes been thinking about the £70 payment, how iv read it you pay the £70 then no payments for 35 months and then they review the final fee on the bike.

Unless iv got it wrong?

You'd be better off checking on a cycling forum, they'll all have dozens (and dozens) of people who have been thro this before.

[Adam F]

Just done this myself...

Final payment £70, use for 35 and then its all yours.... (no additional payment)

[wacattack]

I looked into this recently and I was told I only had to pay the tax on the £250, not the full £250. If you paid the full £250 then I very much doubt there was any discount in doing the cycle to work scheme!

[MHeadling]

I rang the cycle to work scheme to discuss the final payment, the chap on the phone advised me to pay the £70 to extend the terms for the next 35 months then they value the bike at £70 at the end of this and keep your £70 deposit

No monthly payments either, apparently he said they had the £70 option as they didn't agree with the government final value figure.

[chrispattinson]

That seems very expensive.
My final value fee was a nominal £20 , which isn't even market value on my bike (cost £999)