Is it fair that bike shops add money on if you try to pay with a cycle to work voucher?!

[grellboy]

You might recognise my avatar from my earlier posy today - when I was pondering whether to buy a Roubaix or a Tarmac. Having emailed both shops they both told me the price would be more using a voucher, primarily because both bikes were in a sale already! The Tarmac would increase to £1150 - thus putting it outside the £1000 scheme limit - and the Roubaix to £790, which would still be annoying but within my reach.
Any body else have experience of this or able to justify it?

 

[SavageHoutkop]

Can't see why the shop would willingly up the cost of the Tarmac knowing it's then unsellable on the scheme. Mr SHK may need a new bike and was pondering the cycle to work scheme for it but it'd be RRP £1,050 so the shops would need to reduce it to make it work.

 

[Milkfloat]

Yes it is very normal. The shop has to pay a fee for C2W, so for sale bike they often pass this on, for a full price bike their margin can swallow this. There are a few places that do not do this - Evans is a prime example.

 

[mythste]

If it's a halfords voucher I believe its 15% the shop has to pay. Slightly less for most other Schemes.

Sucks a little for those of us that get a lot out of the scheme but I'd be hard pushed to call it unfair.

Spotted the Tarmac myself but had the rule in the back of my mind - If I remember correctly tredz take 10% off the sales price. So for example if it's been reduced by 25%, youd only get 15% off with a Voucher. Its in the T&Cs on their website.

 

[SavageHoutkop]

Interesting. My bike was done using the tax-break but without using the providers (i.e. my company did it themselves), so no charge for the shop.

 

[vickster]

Yes, because as above, they get charged to take the vouchers. Not all shops do, but many won't take the vouchers on a bike reduced from RRP to protect their margin

I used a Halfords voucher at my LBS for a specialized a few years ago, no fee but the bike was RRP

Go speak to Evans, they don't and will take on a reduced bike too

Specialized also restrict their dealers from offering discounts especially on current models, unless head office has set up the promotion

 

[Drago]

If you don't like it you could always pay cash. It's hardly 'unfair' if you have a choice of alternatives.

 

[vickster]

Can't see why the shop would willingly up the cost of the Tarmac knowing it's then unsellable on the scheme. Mr SHK may need a new bike and was pondering the cycle to work scheme for it but it'd be RRP £1,050 so the shops would need to reduce it to make it work.

Some shops allow top up, depends on the retailer

 

[winjim]

They don't add money on. They just don't take money off.

 

[SavageHoutkop]

Some shops allow top up, depends on the retailer

I thought it was against the tax rules though?

 

[vickster]

I thought it was against the tax rules though?

Well I'm sure it's not 100% legitimate but you're not getting any tax benefit on that £50, comes from taxed income. The benefit is only up to £1000, unless your company has a credit licence

I'd prefer to buy a reduced bike out of cash or even interest free credit if I needed to, rather than being tied to C2W

 

[mythste]

I thought it was against the tax rules though?

I spoke to an LBS once who said yes, it was against the rules, but if I wanted a £1300 bike for £1000 on the scheme theyd be happy to sell me a £300 pack of Gels with it

 

[helston90]

I'd try to top it up, I know shops that have done it in the past, even if you have to do it as two separate transactions with them. As mentioned above a £1000 bike on the scheme and a £150 pack of gels- still a great price for how much you're paying for the bike itself - £750 for the vouchers + £150 cash= £900 for a 105 equipped Tarmac.
I know someone once who used the scheme when you could only buy 'safety gear' or a bike, he had a bike already so he bought a few hundred £ worth of safety gear but the shop accidentally gave him a Mavic wheel set instead

 

[wayne11]

Just bought a giant tcr full carbon on cyclescheme,phoned cyclescheme before hand and according to them you are allowed to top up your £1000 voucher,you are not breaking any tax laws,as long as you are aware the bike is not yours until the final agreement has paid

 

[lutonloony]

as mentioned by Vickster, Evans don't charge for voucher redemption, you can use it against reduced prices. Also at the moment they give you a £60ish voucher for bits, and you an get a trade in on your old hack ( they seem pretty unconcerned about trade in bike). I am just waiting for my bike to arrive at shop. £1000 , but will end up with 160 to get some bits, suck as lock, and some shorts