In this week’s blog, we look a bit more detail into some options to help you afford that brand new e-Bike that you’ve been promising yourself, namely The Cycle to Work Scheme, 0% interest finance and how to trade in your old bike.
THE CYCLE TO WORK SCHEME
The Cycle to work scheme (cycle2work), introduced in 1999, is a government initiative to promote healthier work commutes and reduce pollution. The scheme is run through participating employers and offers the most cost-effective way to get new cycling equipment.
It allows employers to loan bikes, eBikes, eCargo bikes and trikes, safety equipment and hi-viz clothing to employees as a tax-free benefit, meaning you don’t have to pay national insurance or tax on these products saving you up to 42%. The cost is deducted from your payslip over 12 to 18 months.
For example, one of our most popular bikes the 2020 Raleigh Motus Tour Low Step a bike costing £2300, you could save £966!!
Who is eligible?
Employers of any size across the public, private and voluntary sectors can offer a tax-exempt loan scheme for their employees. Employees wishing to participate in the scheme need be paid through the PAYE system. The scheme is not available to the self-employed or employees on the National Minimum Wage.
Our stores accept most Cycle to Work schemes, and can save you upto 42% of the cost of a brand new electric bike, we can provide you with a quote in minutes.
Our favourite scheme is the social enterprise – Green Commute Initiative. They have helped us to create the first electric bike cycle2work scheme and we happily to recommend them knowing that you’ll get the best possible deal. Your employer can either use them on a regular or one off basis, there’s no sign up and each application takes about 5-10 minutes to complete from start to contracts being printed.
Not to boast (may be just a little:-) but we’ve been offering eBikes via our eBike cycle to work scheme in conjunction with the Green Commute Initiative for several years now.
Just some of the reasons why we love The Green Commute Initiative (GCI):
- -Social Responsibility – Much like ourselves, their vision is to get as many people out of their cars on to a bicycle improving health and well-being and reduce pollution and cut congestion. Their profits go back into helping more people get into cycling.
- -Not for Profit – GCI is also the only scheme set up as a not-for-profit social enterprise, their charter prevents them from getting into debt. so, can never have creditors and cannot become bankrupt. This means the ebikes are completly safe and will always end up with the customer. No other scheme currently offers this promise.
- -Member of the APPCG – GCI is an Associate Member of The All-Party Parliamentary Cycling Group whose goal is to open up cycling to more people in the UK, and people on their bikes more often. They use their influence as Parliamentarians to promote all forms of cycling.
- -City of London’s Best Practice Guide – Green Commute Initiative was the only cycle-to-work scheme to be included in the best practice guide. The Active City Network aims to make walking and cycling in the Square Mile safer and more comfortable.
- -FCA Authorised – The only cycle-to-work scheme provider authorised and regulated by the Financial Conduct Authority with no hidden clauses or any unfair Ts&Cs.
- -No Sting – Unlike other cycle schemes which charge up to 7% of the full value of the bike. GCI offers a free of charge loan after the inital hire period ensuring you get the full tax-break from the HMRC. Under a seperate agreement the ownership title is passed on to you for £1 (The £1 protects you from any possible future claims from the HMRC).
As another little incentive your bike package can include accessories such as helmets, bells, lights, reflective clothing, child safety seats, tools and spares.
How do I save money on the e-Bike?
Payments for your new electric bike will be deducted from your pre-taxed salary so that money normally paid in tax actually pays for your new ebike. The saving’s will vary depending on your tax rate (High Rate tax payers will save up to 42% – Low Rate tax payers can save 32%) and the way your employer chooses to configure their scheme offer. Payments can be made over 6, 12, 18 or 24 months making the purchase very affordable although most emplyers offer just 12 months.
It may be more tax efficient to just buy the eBike as a company vehicle. Check with your accountant or ask us for more details.
How do I get started?
Choose an ebike and talk to us about the upgrades and accessories that would work well for your intended use, and once you’ve chosen your brand new ebike and any accessories, we’ll email a few quotes, and you can consider which one you like.
Then all you have to do is convince your employer that IT’S A GREAT IDEA!
How do I convince my Employer?
Your employer tops up your National Insurance contributions by 13.9% of your wages. Most companies will be able to reclaim the VAT (if applicable) and offset the costs of the bike against their Annual Investment Allowance boosting their return by up to 30%. Theres an incentive! Please contact your HR department, to find out if your workplace is taking part. If you would like somebody to explain this to your employer, just drop us an email with a phone number, email address, and the contact person.
How many e-Bikes can I buy on the scheme?
You can buy up to 2 electric bikes per time.
Remember we’re not just selling the latest thing – we REALLY know eBikes….since 2005. Get in touch or even better pay us a visit to discover more.
Our experience = your niggle free fun!
Electric Bike Finance
Our E Bike Financing Options
Select the finance option on the checkout page or let the store technician know if you’re buying in our showrooms.
All you need to do is:
1. Spend a minimum £1500 and above
2. A 10% deposit is required but paying more will reduce your monthly commitment.
We offer 5 simple finance options to help you spread the cost of your purchases.
· 12 months interest free finance on orders of £1500 and above
· 24 months interest free finance on orders of £3,000 and above
· 36 months interest free finance on orders of £4,500 and above
· 48 months interest free finance on orders of £6,000 and above
The table below shows you how much monthly repayments will be based on the total order value. (table coming soon)
WHEN DO MY REPAYMENTS START?
Your monthly repayments will begin one month after your purchase has been delivered.
Are there any arrangement fees or hidden extras for credit?
No. There are no arrangement fees or hidden extras.
Credit subject to status and affordability. Terms & Conditions Apply. The Electric Transport Shop Ltdare a credit broker and are Authorised and Regulated by the Financial Conduct Authority.
Credit is provided by Hitachi Personal Finance, a division of Hitachi Capital (UK) PLC Authorised and Regulated by the Financial Conduct Authority.
NOTE: Finance is only applicable to UK residents
When you buy online from The Electric Transport Shop Ltd you have the choice of applying for instant finance by adding your purchase to the shopping basket, selecting the option to PaybyFinance, and completing a finance application form. The whole process only takes a few minutes and is simple and secure. Once your finance application is approved, you will receive an e-mail advising you of how to download the finance agreement. Please read this carefully checking that all the details are correct, then either e-sign the agreement, if offered, or print and sign the finance agreement twice. Post the document to the address shown on the finance agreement. Following receipt of your finance agreement and a few additional checks, your goods will be dispatched.
Applying for online ebike finance
Applying for online finance couldn’t be easier or more convenient. Once you’ve chosen the products you’d like to purchase, simply complete a brief online application form accessed via the ‘checkout’. Just follow the simple instructions, entering your personal details as required and we’ll do the rest.
PLEAE NOTE FINANCE IS NORMALLY NOT AVAILABLE IN CONJUNCTION WITH ANY OTHER OFFER OR SALE PRICE. Call us to receive our best prices, including the finance service you would like.
YOUR QUESTIONS ANSWERED
Here are some of the most commonly asked questions regarding online finance.
Once my application is approved, what happens next?
Within minutes of your application being approved, you will be presented with the option to sign your credit agreement. If you are offered the ability e-sign your credit agreement and choose to do so, a PDF of your credit agreement will be displayed on screen. You should read the credit agreement carefully before clicking all the relevant sections agreeing to its terms. Once you have agreed to the terms of the credit agreement The Electric Transport Shop Ltd will be notified and you need do nothing more. If you are presented with the ability to print and return your credit agreement you should print the PDF agreement, read it carefully and then sign the document following the instructions on the covering letter. This signed document should then be posted to the address shown on the covering letter of the credit agreement. Note that products will not be allocated to your order until your completed and signed agreement is returned and received by Hitachi Capital. Shipment of your goods will follow soon after your agreement has been returned to our finance company.
Will your credit score me and if so, what does this mean?
Credit scoring is the process used by financial services companies to evaluate the credit risk of new applicants. This technique will be applied to your application for online finance. Credit scoring works by awarding points for each answer given on the application form such as age, income and occupation, together with information obtained from credit reference agencies. This information allows us to produce consistent decisions, ensuring all our applicants are treated fairly. Credit scoring does not discriminate on the grounds of sex, race, religion or disability.
If you decline my application, what is the reason?
In addition to credit scoring, we also take into account confirmation of your identity, validation of certain application details, existing commitments and information held at the credit reference agencies. Though we are unable to provide you with a main reason for decline of your application, it is usually based on one, or a combination of the following:
· Your credit score (note that every finance company will score you differently)
· Adverse credit reference agency information
· You are considered to be overcommitted
· You are aged under 18
· Your existing account performance with other lenders
What type of information do credit reference agencies hold about me?
Some of the information is public information, for example electoral roll, County Court Judgements and bankruptcies. Other lenders may also file information about accounts you hold with them for instance this could include your payment history and outstanding balance on these accounts. Any requests for credit, where a credit reference search has been undertaken, will also be filed, although the result of the request is not recorded.
How do I obtain a copy of this information?
You should send a cheque for £2.00 made payable to the relevant company, together with details of all addresses at which you have lived over the last 6 years:
· Consumer Help Desk Experian Limited PO Box 8000 Nottingham NG1 5GX
· Equifax Ltd., Credit File Advice Centre. PO Box 1140. Bradford, BD1 5US
· Consumer Services, Callcredit Limited, PO Box 491, LEEDS, LS3 1WZ
The above listed agencies will provide details of information relating via these addresses. If you believe that the information is incorrect, you can ask the agency to correct it.
If my application is not successful, can I re-apply?
Yes. We acknowledge that your circumstances change and just because we have refused a previous application, it does not mean that we’ll automatically turn down a further request. We do suggest however, that you leave at least 6 months between applications.
Who is eligible to apply for online finance?
To apply for finance, you must be over the age of 18, work at least 16 hours a week, or be retired with an income. You must also be a resident of the United Kingdom and have lived in the UK for the last 12 months or more. Unfortunately, we are unable to offer online finance to residents of Eire. Homemakers aren’t excluded from applying under their own names; however we will require the employment details of your spouse in order to process your application.
Can I request delivery to an address other than my home?
In order to safeguard against fraudulent applications, we regret that we’re able only to deliver goods to the home address of the applicant. Saturday morning deliveries can be arranged if this is more convenient for you.
ELECTRIC BIKE TRADE IN
Upgrade – Recycle
We reuse, repurpose and recycle everything we can because the earth needs it, and you need the earth and therefore it’s part of our customer service mission. As part of this responsible service offer we guarantee to buy your e-Bike back from you at any point in the future offering you a credit towards your next purchase.
We consider e-Bikes not bought from us only against a new electric bike purchase.
Non working e-Bikes – we will also consider offering a trade in value for non working e-Bikes.
Although we can give an indication of trade in value without seeing the e-Bike we will need to see it before making a final offer.
The not so small print….
We service all traded in electric bikes, replace any parts that need or will soon need replacing, and perform battery and charger tests before selling on with a warranty. We also have to pay VAT on the sale price. For these reasons you will not be offered a market price and this service should be considered as a matter of convenience rather than the way to achieve the best sale price.
At Electric Bike Sales, we dont have push sales staff only highly trained e-bike technicicans. So when you visit one of our stores, you’ll be served by an experienced technician whose job is to help you figure out which make and model is right for your particular needs and look after you from that point on. Electric bikes are technical products, and it helps to know your stuff. So whether you shop online or in-store, you can have peace of mind that you are buying the best from the best.
Customer Support 01223 360208
You will find our stores at:
118-120 Newmarket Rd, Cambridge CB5 8HE
125 Magdalen Rd, Oxford OX4 1RJ
32 Walmgate, York YO1 9TJ
35 Lower Redland Rd, Bristol BS6 6TB
Please pop in. (To protect our customers and colleagues, we encourage customers to use our efficient appointment system – contact us by phone or email to book. We are keen to support NHS and key workers, so please get in touch for free servicing and huge discounts.)