In April’s issue we ran a feature on funding your habit — how to afford your new bike. We spoke to the Bike Leasing Company’s Paul Mander-O’Beirne, who took us through some of the details about leasing a new bike rather than buying one. Here are a few clarifications from Paul…
£5k bike would actually only cost £3.5k over the 2 years and not the £4k mentioned in the article.
For three quarters of the lease, your monthly costs would be less than £12.87 a week on this £5k bike! That sounds pretty affordable.
At the end of the lease you have several flexible options including handing it back, buying it or extending the lease.
If you chose to buy at the end of the lease, you’ll only have paid an equivalent APR of less than 6 per cent. Compare that to bank loans out there at 20 per cent APR for equivalent amounts over two years!
It’s the way to keep running costs at their minimum.
Bike Leasing Company take on the majority of the risk in relation to depreciation.