A mate is looking at a £950 hardtail on Cyclescheme.
At the end he has to pay "fair market value" minus whatever he's paid.
How do they calculate the fair market value?
Cheers
I think after the first 12 months the value is calculated at 25% of the original price. However, you can continue the hire period, free of charge, and the value drops as time passes.
B.
25% after 1 year or £70 admin fee to keep it for a further 3 (I think) by which time the value is £0.
Age of cycle
Acceptable disposal value percentage you must pay
1st number = Original price of the cycle less than £500
2nd number = Original price if the bike was £500+
1 year old...
18%
25%
18 months
16%
21%
2 years
13%
17%
3 years
8%
12%
4 years
3%
7%
5 years
Negligible
2%
6 years & over
Negligible
Negligible
Do what I intend to do - ride it, then leave it in the shed for 6 years.
Hi, Ive just settled my final bill on a £900 Trek plus £60.00 worth of accessories - £30.00
From Cyclescheme
You now have 3 options:
1. Under a separate agreement with Cyclescheme, you pay a small, one-off refundable deposit (3% or 7% including VAT of the equipment value*) and continue to use the bicycle for up to 3 years. The monthly payments are zero. At the end of this period, Cyclescheme refund the deposit if you do not wish to keep the equipment.? This option will cost you £70.00.2. Take ownership of the equipment by paying Cyclescheme a much higher valuation (e.g., for a one year old bicycle this would be 18% or 25%* of the certificate value in accordance with HMRC requirements).? This option will cost you £250.00.
3. Return the bicycle to Cyclescheme, at your own cost.
on my voucher worth 1k