If you’re researching electric bikes you have undoubtedly seen advertising for financing your electric bike. This type of loan is called point of sale finance and is a relatively new offering in the market. It allows consumers to spread out their purchase of a product over many months through a financing offer accepted at checkout, hence the term point of sale. The phrase ‘buy now, pay later’ is also often used. Typically, but not always, the rates are lower than you would see on a credit card. Companies like Klarna or Affirm partner with online retailers in order to offer financing on higher priced products, like electric bikes. Klarna and Affirm are both reputable financial institutions operating in the US and Affirm is the most common of the two.
Interest rates can vary from 0% (Yes, true 0% financing) to rates in the double digits. If the ebike brand offers a 0% financing offer only the very best borrowers will be approved. The reason this makes sense for ebike companies to offer is because they are able to convert more shoppers into buyers by having a financing offer.
Should You Finance Your Electric Bike?
In my opinion, the 0% offers can make sense assuming that the payment isn’t going to be a burden on your financial situation. For those who are offered a higher rate I would tread very carefully. As I mentioned earlier, the rat es can get quite high and unless you’re using the electric bike to commute to a job it simply isn’t a necessary purchase. It would be better to wait and save up for your electric bike.
Below I’ve compiled a list of the popular electric bike brands that offer financing. I also created a short video on financing your electric bike.