UK Bike2Work scheme

Yah know... `been poking around ES and can find NO mention of the UK Bike2Work scheme?

Seen here:
http://www.bike2workscheme.co.uk/

We are Bike2Work. And we get people on bikes.

As the UK's no.1 independent provider of the Government Cycle to Work scheme, we believe that bikes are good for everybody. Because healthier, happier employees mean a more productive staff for Employers.

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In other words... governments making the purchase of a new bike ... including Euro "pedelec" electric bikes .... "cost less"... aka making new bikes "cheaper" to buy.

Just curious to hear from anybuddy about "how it's going"...

I have never looked at it closely, or taken it that seriously, it has been around for quite a number of years. i think repayments for a bike purchased is taken from your gross salary every month before any stopages such as income tax and national insurance contributions.
I just put £2500 as a bike cost into the calculator and it said i would save £500 on tax and £300 on national insurance over a 12 month repayment plan of £141 per month net cost. Thats actually about 30% discount.

You can only buy from dealers that are in the scheme and if your employer supports it. Dealers have to give up I think 5% of the sale price, so some won't join the scheme. I would guess that something like about 10% of the UK forum members use the scheme to buy their bikes.

TKS folks. "about 30% discount"... and "10% of the UK forum members use the scheme to buy"... "UK forum"? aka pedelec ppl?

I still hold out hopes for the DIY folks (in North America, at least...) BUT buying new may be "harder to justify" versus manufacturers "jumping aboard" the "ebike steamroller" (amusing term...). And "economic theory" dictates a downward pressure on prices given more and more competition... Add to this governments "sweetening the pot" for new pedelec bikes w/zero for conversion kits and bits... Anyway... all fun to watch for one urban traveler who picked up their first two-wheeler with assist near two decades ago, when locally electrics could be counted as in the dozens at that time. 8)

The savings are 32% (20% income tax and 12% national insurance contribution) from £10,000 up to gross earnings of £42,000. Any earnings above this point get a higher rate of reduction of 42% as tax and n.i go up too.

People don't use the scheme because it's difficult to find a dealer with the bike you want, who's in the scheme. The dealers in the scheme have to give a percentage to the scheme, so it tends to be only the dealers selling high margin bikes that are in the scheme. High margin bikes are often expensive, and the dealers selling the high bang-for-buck bikes are unlikely to be in the scheme. Basically, it's not just a case of finding the bike you want at the best price, then paying 30% less by using the sceme. That can work in some circumstances, but mostly it doesn't.

There's also some complications about wnership because you don't own the bike while you're paying for it.

d8veh said:

People don't use the scheme because it's difficult to find a dealer with the bike you want, who's in the scheme. The dealers in the scheme have to give a percentage to the scheme, so it tends to be only the dealers selling high margin bikes that are in the scheme. High margin bikes are often expensive, and the dealers selling the high bang-for-buck bikes are unlikely to be in the scheme. Basically, it's not just a case of finding the bike you want at the best price, then paying 30% less by using the sceme. That can work in some circumstances, but mostly it doesn't.

There's also some complications about wnership because you don't own the bike while you're paying for it.

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My employer does accept the scheme, and there are some big retailers such as Evans cycles and Wiggle that are on board.
If i was in the market for a high end mountain ebike like a specialized Levo, or similar *new* model, then there is money to save. Otherwise, yeah, you'd probably find some bikes 30% cheaper in non bike scheme retailers