C2W or 20% discount with 2 year IFC

[Powely]

Before I finally take to plunge and buy my new bike, which is the better deal?

The cycle to work scheme at the top budget allowed or £1k bike with 20% discount with 2 years interest free?

I can't get my head around how the scheme works? I'm also a little off put by the hire not ownership [part of the C2W scheme. And if for whatever reason I don't stay at the same employer for the full term does the penalty kill the discount?

 

[Spartak]

I've finished my years payments with C2W scheme & was hit with an extra payment to continue 'hiring' for a further term !

In your case 20% off & 2 years IFC sounds a good deal

 

[Powely]

Yeah, I'm not convinced by the C2W but I'm thinking that's because I don't fully understand it, as there are so many people who buy through the scheme? They must know something I don't. Also hasn't the scheme changed recently, so it's no longer such a good deal?

 

[vickster]

Ask HR to tell you what the total C2W payment will be, it depends on your tax code (whether a lower or higher rate txpayer). Remember, you'll be paying the IFC out of taxed income.

Not everyone can get IFC, nor get the bike they want from a retailer offering IFC, hence the C2W option. I suspect as many people buy IFC or on a 0% CC as C2W, they just don't use Cycle Chat necessarily.

As said, you also need to decide whether you will definitely be in your current company for 2 years, if not, and you leave, you'll need to pay the balance, but not sure how that works in terms of tax etc

I would decide which bike you want (I don't think you have done that yet) and see what the best price is for C2W and IFC and then do the sums. Some retailers don't offer sale discounts on C2W as they have to pay a fee

I'd personally buy with IFC. Whatever you do, make sure you insure the bike - either way you don't want to be paying for something you no longer own...