What You Should Know About Bike Finance

What You Should Know About Bike Finance

Bike finance allows you to make purchases using installment payments instead of paying an up-front lump sum sum. Many national banks and credit unions provide competitive financing options for bikes.

Begin calculating your budget to find out whether bike financing is right for you. Utilize this worksheet and come up with a realistic amount that works towards financing a new bike purchase.


Bike finance can be an ideal way to purchase a two-wheeler without jeopardizing your savings. Before making your decision, however, it’s essential to understand how this type of funding works as well as your ability to repay any loans in case of emergencies.

Bicycling can be an excellent method of transportation in busy cities, and many invest in two-wheelers because of their convenience and cost-efficiency. Furthermore, biking can be an enjoyable activity that improves cardiovascular and brain health.

Saving up for a bike requires considerable funds, so saving rather than availing of installment plans may be the better option to avoid interest expenses and preserve savings for other purposes. An online calculator can help determine how much savings are required to buy one; once this amount has been set aside, invest it wisely so as to build your corpus over time.

Credit Score

Banks typically employ a credit scoring model that evaluates borrowers’ abilities to repay debt, with one major element being credit utilization ratio (the ratio between outstanding debts and total available limits).

Lenders will take into account your employment and income when reviewing loan applications, so having stable employment and an excellent credit score are good ways to ensure you can pay back any loans they issue.

Manufacturer Financing:

Many bike manufacturers directly provide financing options to customers, like Harley-Davidson. Retailers acting as brokers also offer finance credit on bike parts, accessories and technology costing over PS250 that fall outside of FCA regulation; it is therefore vital to communicate clearly with your dealer’s finance team and understand your situation prior to applying for any loans in order to avoid errors and avoid being misled into taking out loans that end up becoming problematic later on.

Bike Store Financing

When purchasing a new bike, some stores provide in-house financing with credit cards. Although this may seem convenient, it’s essential that you understand exactly how much interest is accrued over time and any missed payments could harm your credit rating and make future loans harder to come by.

Some lenders impose limits on what types of bikes they will finance; Southeast Financial only finances bikes that are under 10 years old – this poses a problem for buyers looking for used or older bikes.

Many bike companies also provide interest-free or zero per cent APR financing solutions when making purchases, like Trek’s six and 12-month “No Interest Payment Plans,” while Wiggle offers no APR on purchases over PS280.