Saving money on cycling: buying a bike, maintenance and getting Government help

Inspired by the Tour de France? Steve Edgell, chairman of the Cycle to Work Alliance, explains why getting back on the saddle could help your wallet.

Cycle to Work scheme

Buying through the Cycle to Work scheme (C2W) is the best way to save up to 48% on the retail cost of new bikes and cycling accessories if you plan to use your bicycle for the commute.

The government scheme gets you a tax-free bike and accessories worth up to £1,000.

Many employers already offer the scheme and, if they don’t, they can be easily convinced, because it’s free to set up and it saves them money on their wage bills.

Because employees pay back what they owe through a salary sacrifice they effectively reduce their gross pay, reducing their employer's National Insurance contributions by up to 13.8% of the value of all equipment supplied.

Here’s an example of what employees can save by taking advantage of the scheme:

For a person earning up to £45,000 per annum, buying a £700 bicycle, a £60 helmet and £90 of commuting accessories:

Salary sacrifice (from your gross pay) = £71.83 per month

Actual monthly cost (from your pocket in each pay period) = £48.84

Total cost (over 12-month payment term) = £586.13

You save: £263.87

You can work out what you’d save using this C2W calculator.

Reclaim miles cycled

HMRC states that employers may pay staff 20p per mile tax-free for using their own bicycles for business travel.

Note this doesn’t include travelling to and from your normal workplace unless it’s a temporary place of work i.e. you can’t claim mileage for commuting.

Some ‘green’ employers do offer bigger mileage allowances for employees using their own bikes to travel to work meetings - so always ask.

If your employer does not pay a mileage allowance for bike travel, you are entitled to claim the tax relief yourself.

If you’re self-employed, the same mileage rules apply, and it’s worth speaking to your accountant about other allowable cycling expenses that may apply.

Read our complete guide to tax saving - including tax returns - here

Could one bike fit all?

Think long and hard about what you need from a bicycle.

Some people have plans to buy two bikes to serve different purposes but may find that one bike could do both things, saving both money and storage space.

For example, a cyclocross bike (pictured below) can perform well on the road with slimmer road tyres for faster leisure rides and, when fitted with heavier duty tyres, mudguards and a rack, it can be used for commuting or touring.

End-of-season sale bargains

Much like the smartphone market, many bike retailers will lower prices of older models when new models are released so, if you don’t care a jot about having the latest model, you’re much more likely to pick up a bargain.

Some online retailers let you refine your search criteria by past years’ models. Often, the annual upgrades will be iterative rather than a larger overhaul of the spec.

‘End of season’ falls at different times for different retailers, so it’s well worth following online retailers and your local independent bike shops by subscribing to their newsletters and social media feeds.

This way, you’ll be first to know about end of season sales, promotional offers, and discount codes.

Also, have a look at cashback websites Quidco and Top Cashback, which occasionally include bike offers.

Get up to 36 months to pay off your new bike with a 0% purchase credit card

Buying second hand

Much like car dealers, some bicycle retailers offer discounts on a new bike if you give them an old bicycle, called a ‘trade in’ or a ‘part exchange’. The better the bike, the bigger the discount.

An alternative to this is to get your local bike shop to remove quality, working parts from your old bike and fit them onto your new frame.

It’s unwise to buy second-hand bicycles from online marketplaces if you don’t know what you’re doing - buy via a reputable retailer instead.

If you know exactly what size, make and model you want, and you’re comfortable doing your own basic maintenance checks on collection then it’s an option.

Police auctions, where stolen goods are legitimately sold to the public, are a safe way to buy second-hand bikes. Some police forces have their own eBay stores, or you can keep an eye on Bumblebee Auctions.

If you buy from sites like eBay and Gumtree you risk perpetuating the scourge of bike theft, as thieves – as well as legitimate sellers – use these sites to flog stolen bikes.

Use your initiative when communicating with or meeting sellers.

28 eBay buying tips, tricks and tools

False economies

There is such a thing as false economy, especially in cycling: what you pay is what you get.

If you’re on a budget, buy the very best frame you can afford, with cheaper component parts that can be upgraded over time.

On cheaper bikes, with proprietary components, you won’t be able to swap the parts so, if you plan to improve your bike, check the compatibility of the frameset.

Because good wheels and tyres are expensive, it’s common to see good frames with cheap, low-end wheels and tyres fitted for sale. These make a big difference to weight, rolling mass and grip.

With cheaper versions, you’re more likely to get punctures, and you will be forking out for replacements pretty quickly.

If you’ve got a friend who knows lots about bikes, or is mechanically minded, it could be wise to get them involved in your buying decision.

Care & maintenance

Cleaning, servicing and protecting key parts will make your trusty steed last a lot longer, so take good care of it.

You can minimise wear on expensive components with frame protectors, or simply wrap exposed parts of your frame in electrical tape or old inner tubes for cheap alternatives. Fitting mudguards will also help as these can stop stones and grit damaging your frame.

Don’t scrimp on security

If you buy a £1,000 bike and a £20 lock and it gets stolen, you’ll be pretty cross with yourself.

A good rule of thumb is to get a locking system that’s 10% of the value of bike and be rigorous about how and where you lock up. Don’t take any chances.

Often your insurer will stipulate which bike lock you need. Without their recommended lock, you may invalidate your insurance.

Read more about ways to insure your bike here

Cycling is already saving you

Compared to commuting on public transport, and travelling by car, cycling is already saving you money in the short term.

The longer-term savings are harder to quantify but, by getting fitter and healthier racking up miles in the saddle, you’re going to lower your health insurance premium, and the costs to the NHS of keeping you well as you get older.

An extensive five-year study of more than 250,000 UK commuters with an average age of 53, published by the British Medical Journal, found that people who regularly cycle to work cut their risk of cancer by 45% and heart disease by 46%. Overall, the risk of death from any cause was also reduced by 41%.

Steve Edgell is chairman of the Cycle to Work Alliance and managing director of Cycle to Work scheme provider Cycle Solutions. The views expressed in this article do not necessarily represent those of loveMONEY.