Making Electric Bikes More Affordable
Sometimes people get sticker shock when they hear that an electric bike will cost a few thousand dollars.
What you should factor into the equation is that using an electric bike to commute and run some errands that you would normally use your car for will be saving you money that is normally spent on gas, oil changes, maintenance of the car, and parking fees.
With that in mind the overall cost of an electric bike is not so bad considering it is one of the least expensive electric vehicles available!
To make it even more reasonable there are a few financing programs available that make owning an electric bike easier than paying the full cost up front. The following are a few of the programs available.
1. First of all, check with your local electric bike shop to see if they have a financing program set up. GE and Citi have partnerships with some of the local shops. And here is one from Way2Go Leasing.
2. There are the new peer to peer loans that are becoming popular and offer competitive loans. Here are the two most popular right now:
Lending Club personal loan
And here is a good comparison chart for both.
3. Check with your local bank to see how competitive their rates and terms are on a personal loan. Wells Fargo seems to have a pretty good personal loan program.
4. Another option would be to use a home equity loan or line of credit if you own a home. These tend to have low interest rates.
5. If you live in the Portland, Oregon area there is a credit union that has bicycle loans with very competitive rates.
6. You could also break down ownership of an electric bike into monthly payments by using a good old fashioned credit card. The interest rate may not be as good as the previous options mentioned but it is still a feasible option considering that an electric bike is usually a fraction of the cost of a new(er) car.
These are just a few options that I wanted to share with you. As more catch my attention I will let you know.
When all the numbers are run and the dust settles, the monthly costs of owning and using an electric bike can be pretty reasonable with all the financing options available.
In fact, if you use an electric bike enough for commuting and/or running errands you may end up “justifying” the monthly payment on an electric bike with the money you save on gas, oil changes, maintenance, and parking fees. Of course “your mileage may vary” 🙂
In future articles I will get into more of the nuts and bolts cost comparisons of using an electric bike in lieu of a car for some trips.
What do you think? Would you be more inclined to own an electric bike if you could get a low interest rate loan to make affordable monthly payments?
Please leave your comments below!
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[…] Price = $2599 USD (See Making Electric Bikes More Affordable) […]
[…] You can expect to pay $2000+ (USD) for an electric cargo bike. This may seem like a lot, but when you consider how it can be used in lieu of your car for a lot of trips around town it starts to be more reasonable. The stop and start driving around town causes a lot of wear and tear on your car. By using an electric cargo bike instead you will save money on gas and maintenance (tires, oil changes, tune-ups, etc.). Not to mention having more fun . See this article for creative financing ideas for electric bikes. […]
Sure Electric bikes are expensive but so are smart phones and tablets. The new IPHONES are over 200 dollars and the monthly service charge is about 100 dollars, in another words 1500 dollars/year for a phone! At least with an Electric bike you get transportation, recreation and exercise.
Pete at Electric Bike Report says
Great points George! Electric bikes are expensive up front but pay you back
month after month, year after year.
Especially so when you do all your battery charging at work. 🙂
Plus most urban places you have to pay for parking. If you rent an apartment you have to pay for parking. Where I live its anywhere between $300-$1200/year for parking space.
My charger used 0.14 KWH for 12 miles of riding the new Ohm Urban today. Any idea of how much that cost?
Hi Norm, not much! Here is a break down of the cost to charge an electric bike.