The Cycle to Work Scheme has been updated, and no longer has a £1000 upper limit! Save up to 47% on your new bike, and pay over 12 months, interest free...
Whilst the Cycle to Work scheme does not cost you or your employer any extra, we the retailer are charged a significant fee by Cyclescheme. Unlike the Green Commute Initiative, which is run as a Social Enterprise, Cyclescheme is a for-profit business, part of a larger multinational.
As such they seek to maximise their profits by charging retailers a handling fee of 10% of the bike's value - despite the fact that exactly the same amount of administration is required regardless of the bike's cost; there's no difference in the process.
This means that we are unable to credit back the cost of an initial bike fit against a bike purchased using Cyclescheme, and cannot waive the labour charges for building the bike as we would usually do on a cash purchase.
However, there are still significant savings to be had. For example on a £5000 bike there'd be a nominal value of £5350 including a full fit, but that would still only equate to an actual cost to you of around £2850, spread over 12 months interest free, making for repayments of only £236 per month.
We feel strongly that Cyclescheme's excessive 10% fee is holding back adoption of the cycle to work scheme, since retailers already working on tight margins simply cannot afford to offer the scheme on this basis. A flat fee would more accurately reflect the nature of the work they do, but at the very least a smaller percentage is required. This is something we're actively working to address.