How it works with Cycle Solutions
You can watch Cycle Solution’s summary video on how it all works here.
Below is a step-by-step guide on exactly how purchasing the FLIT-16 through Cycle Solutions works.
1. Choose your ebike & accessories, then request a quote from us
Choose your ebike colour, and any accessories that you’d like to add.
Email us at [email protected] with the following details to request a quotation:
– Your ebike colour
– Your chosen accessories
– Your Cycle to Work scheme provider
– Your full details (including first name, last name, shipping address, mobile phone number and your employer’s company name)
We’ll then get back to you with a quotation so that you can start your application.
2. Start your cycle to work application
Once you’ve received your quotation from us, you can start your application. You need to apply to Cycle Solutions for the amount shown on your quotation including the 12% Cycle Solutions commission.
Here an an example: if you’re ordering just a FLIT-16, without accessories, you need to apply for £2,238.88 (£1,999 + 12% Cycle Solutions commission). This will be higher if you are adding accessories to your order.
Your employer and Cycle Solutions will then review your application and pay us the total amount of your package. In turn, we pay Cycle Solutions their commission (please note that we do not benefit from adding the commission to your package as this is ultimately paid to Cycle Solutions).
3. Receive your letter of collection
Once your application has been approved you’ll receive a Letter of Collection from Cycle Solutions, which you need to send to us.
We will then prepare you ebike order for delivery.
4. Start your monthly repayments (TAX FREE!)
Here’s when you start saving!
Once your Cycle Solutions letter of collection has been processed, you’ll start making monthly payments to your employer. These payments are deducted from your salary before tax, which is why this is known as a salary sacrifice scheme.
With Cycle Solutions, your payment period is typically 12-18 months. During this payment period, Cycle Solutions technically owns the bike and you rent it from them.
Using a £1,999 ebike on a 12 month payment period as an example, and taking into account Cycle Solutions’ 12% commission, you could expect the effective price after tax savings to be:
- £1,522.44 if your maximum income tax rate is 20%, saving you £476.56 (24%)
- £1,298.55 if your maximum income tax rate is 40%, saving you £700.45 (35%)
What happens after the rental period?
Once the rental period is up you have three options to choose from:
1. Zero cost extended hire –
You can sign up to an extended rental agreement. You will have nothing further to pay and the ownership will automatically transfer to you after the extended rental period finishes.
2. Immediate ownership for Fair Market Value –
Take ownership of your FLIT-16 immediately by paying Cycle Solutions the market value (e.g. for a one year repayment period this would be 25% of the value of the FLIT-16 in accordance with HMRC requirements).
3. Return –
You can arrange for Cycle Solutions to collect your FLIT-16 and return it.