What you need to know if considering e-bike financing

Now that you have selected an electric assist bike, you may want to know if e-bike financing is an option. And should you finance all or part of the purchase to get the right bike that will fit your needs over the next two to five years? With the growing popularity of electric bikes, many lending institutions are now offering attractive financing for electric bikes. Yes, and some manufacturers are currently offering 0% financing. So do a little more shopping for the best loan rate that fits you.

Should you consider e-bike financing?

Called “point of sale finance,” this type of loan is a relatively new offering in the market. It allows consumers to spread their purchase price over several months through a financing offer accepted at the time of checkout. The phrase “buy now, pay later” holds true here. Typically, but not always, the rates offered at a local lending institution or bike shop are lower than you would see using a credit card.

Adding a few accessories to the bike purchase

First, check with your local bank or credit union, like Infinity Plus, to see if their bicycle-specific loan program fits your budget. Some programs allow you to borrow 120% of the bike’s cost to buy accessories (helmets, locks, baskets/panniers, lights, etc.).

Do they offer attractive loan packages that you like at the bike shop or through the bike manufacturer online? Interest rates can vary from 0% to rates up to the double digits. It usually depends on your credit rating for the rate you will qualify. If your credit score is not high enough, you may have to pay a certain amount of the purchase down or a higher rate.

In our opinion, here at HaveFunBiking, the 0% or slightly higher rate can make a lot of sense, assuming that the payment isn’t burdening your financial situation. On the other hand, if you only qualify at a higher rate, it might be better to wait and save up for your electric bike. Unless you’re using the electric bike to commute to a job and can justify the added monthly cost.

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