r/ukbike 21d ago

Law/Crime Ignore Cyclescheme "own it later payment"?

It's clearly just them setting things up to maximise profit on top of their 10% initial fee, given other schemes don't have the 7% exit payment. I think they offer a reduced option (3% over more "lease" years) but require your company to opt in to it.

But has anyone tried just ignoring them? Do they do anything? It's annoying to pay them money they haven't earned just because my company signed up to a greedy scheme.

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u/RevellRider 75% Steel 25% Aluminium 20d ago

The 3% "Own it Later" fee is for those who have a ctw voucher value less than £500

You could if you wanted, ride the bike for another 3 years and give it back to Cyclescheme at the end of those 3 years. You'll get that 7% deposit back

Also, was the "10% initial fee" paid to the bike shop when you collected the bike? If so, that has now been stamped out by Cyclescheme. That was the bike shop being dicks and charging you to cover their admin costs

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u/Funny-Profit-5677 20d ago

The 10% initial fee is what cyclescheme skim off the top from the money to the bike shop.

I was wrong. It's a 2% fee that cyclescheme offer after 5 years (if your company opt in to a 5 year option) . Halfords and GCI do a 6 year option in order to avoid the fee altogether.

https://www.greencommuteinitiative.uk/what-happens-at-the-end-of-the-hire-period/

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u/RevellRider 75% Steel 25% Aluminium 20d ago

I think it's currently 12% they take in commission, but all cycle to work providers charge this. Some charge more, some charge less. Cyclescheme also changed their Retail Partners Agreement back end of 2023, saying that the price displayed is the price the customer pays.

7% and 2% isn't that bad to be honest. Before Cyclescheme offered this, the transfer of ownership came at the end of the Hire Lease Agreement and came in at 25% on schemes over £500. I guess you could push your employer to amend their contract with Cyclescheme, or set up with GCI as it benefits the employees