Once your initial Hire Agreement has finished, Cycle to Work will be in touch to discuss your options relating to the transfer of ownership. This is a process that Cycle to Work must go through to ensure the scheme remains compliant.
You will be able to choose from three options as follows:
- Extend the Hire Agreement with Cycle to Work at no cost to yourself. At the end of the extension, you can take ownership of your goods at no cost. (Most popular option.)
- Return your goods to your local Halfords store and have nothing further to pay.
- Take ownership of the goods straight away. This will incur a one off charge based on the fair value of your goods. Goods initially costing less than £500 have an 18% residual value after 12 months, down to zero after 4 more years. Goods initially costing over £500 have a 25% residual value after 12 months, and this value reduces each year, down to zero after 4 more years.
The hire period is 12 months.