Can you get a second-hand bike on cycle to work?
Yes, if your employer's scheme allows it. Nothing in the rules requires a new bike. Where there is a restriction, it is the provider's own policy, and two well-known providers give opposite answers.
What the rules actually say
The DfT guidance defines a cycle using the Road Traffic Act: "a bicycle, a tricycle, or a cycle having four or more wheels, not being in any case a motor vehicle". It says nothing about age or condition. What the tax exemption depends on is that the bike is owned by the employer and/or a third party, and mostly used for commuting or business travel.
Why providers disagree
| Provider | Second-hand bikes | On what condition |
|---|---|---|
| Cyclescheme | Not allowed | Ex-demo bikes only, from a partner retailer, with a 12 month warranty |
| Green Commute Initiative | Allowed | A three-month warranty from a GCI registered bike shop |
Green Commute Initiative allows second-hand bikes with a three-month warranty from the retailer. Cyclescheme does not, apart from ex-demo bikes from a partner retailer with a 12 month warranty. Same legislation, opposite answers: each provider sets its own risk policy. CyclePerk is not affiliated with, endorsed by or acting for either, and names are used for identification only.
Why the warranty rule exists
The rules do not require one. Green Commute Initiative's guidance explains its own condition: the warranty "will come from the retailer you buy the bike from and also means you can only get a bike from a GCI registered bike shop which rules out buying from a private seller."
Providers that allow used bikes require a retailer warranty so that a trade seller stands behind the bike, which a private seller cannot do. It matters because the employer is hiring the bike to a member of staff, and the Consumer Rights Act 2015 applies to the hire of goods as well as to their sale. Whoever owns the bike carries its quality.
Buying from a private seller
Not through the schemes that allow second-hand bikes, because they require a warranty from the retailer, which rules out buying from a private seller. If you have found a used bike you like, the route is a shop that sells used stock and is registered with a scheme that allows second-hand bikes.
Does a used bike save as much?
The saving is the same share of the price, because it comes from paying out of gross salary rather than from any discount. A cheaper bike means a smaller saving in pounds and a smaller commitment. At the end of the hire, the value HMRC accepts for a bike that cost under £500 falls faster: 3% at four years and negligible at five. What happens at the end of the hire sets out the full table.
Sources
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