Whether you are already an e-bike enthusiast who is looking to purchase a new model or you haven’t yet sampled the delights of a power-assisted bicycle and are keen to try, you have come to the right place.
Electric bikes are becoming increasingly popular as a mode of transport for people of all ages, allowing you to transform your commute to work, avoid traffic and minimize pressure on your joints.
That said, they can be costly.
Fortunately, there are several ways you can finance your new e-bike. Keep reading to discover exactly what they are.
What is electric bike financing?
If you are new to financing, and electric bike financing in particular, it is a good idea to find out exactly what you are letting yourself in for before you sign on the dotted line. Electric bike financing is a type of buying goods on finance where you buy a bike and pay for it in instalments.
Electric bike financing is a beneficial option if you can’t afford to pay for your preferred electric bike all in one go, but you don’t want to wait to save up for your purchase.
You will be able to find many financial companies and e-bike shops such as Bikes Direct that offer electric bike finance online, each with their own terms and conditions.
Things to consider when taking out e-bike finance
Can you make the monthly repayments?
Depending on the type of e-bike financing that you take out, it is important that you choose a realistic time scale for paying it back. There is no point in committing to paying x amount over 6 months if you are going to struggle to make your payments each month. Having to extend your payment term can result in a daily increase in your interest rate, resulting in having to pay back a lot more than you initially borrowed.
Do you have good credit?
Making the decision to buy anything on finance is not one that should be taken lightly. Borrowing money from a lender or the store that you are buying your e-bike from is not the same as borrowing from family or friends. However, if you are going to go down the financing route, you want to make sure you are in the best possible position to do so. Namely, that you have a good credit score so that financial companies will know that they can trust you, and in turn, will offer you a better rate of interest.
Would a short-term loan be better?
Unless you are extremely lucky and you have found a 0% interest and 0% APR electric bike finance agreement, you will be paying more over time than the original cost of the bike. In fact, in some cases you could be paying quite a lot more. Therefore, it can be a good idea to look into the possibility of taking out a short-term loan to cover the cost of your new e-bike instead.
The benefits of a short-term loan include:
- You can borrow small amounts
- You can apply and be accepted online
- There are lower total interest payments
- Quick funding time
- You do not need a good credit score
Whatever financing option you choose for your new electric bike, make sure you can comfortably make your repayments and take care to read the safety manual first as no one wants to have a Simon Cowell accident, now do they?