Electric bike financing in Canada

If you’re looking for an easier commute to work or some extra motivation to get active, an e-bike could be the answer. And if you want to finance an e-bike in Canada, there are several ways to go about it.

In this guide, we’ll look at six e-bike financing options to help get you pedalling.

Option 1: Buy and finance an e-bike through the store

How it works: In-store electric bike financing is a quick and convenient option to get your new bike. Stores work with third-party providers to offer financing, and you can split up the purchase price into regular repayments over terms ranging from 3 to 60 months. 0% and low-interest financing are available, but 0% interest may only be available for an introductory period. Some retailers also offer Buy Now Pay Later financing, where you can split the purchase price into four equal payments over six weeks, with no interest charged.

Suited for: People looking for a quick and easy e-bike financing option. Keep in mind that you’ll typically need good credit to qualify for 0% financing.

Option 2: Finance an e-bike using a personal loan

How it works: You can use an unsecured personal loan from a bank, credit union or private lender to fund your e-bike purchase. Banks and credit unions have strict eligibility criteria, so you’ll typically need good to excellent credit to qualify. Many private lenders accept borrowers with bad credit, but you’ll need to settle for higher interest rates as a result. Loan terms typically range from 3 to 60 months.

Suited for: Borrowers with good credit.

Compare personal loans to finance an e-bike

Option 3: Buy and finance an electric bike through the manufacturer

How it works: If you’re buying your bike directly from the manufacturer, some e-bike manufacturers offer access to e-bike financing in Canada through third-party providers. This may involve a monthly payment plan with low interest rates, or a Buy Now Pay Later option that allows you to split the purchase price up into four payments with 0% interest.

Suited for: People looking for a quick and easy e-bike financing option.

Option 4: Finance an electric bike using a credit card

How it works: If your credit card has a low purchase rate, you could use it to finance an electric bike. It’s a simple way to pay for your purchase, and rates of around 8.99%-12.99% are available on some cards.

Suited for: People looking for convenient financing they can also use to cover a range of other expenses.

Less common options to get electric bike financing in Canada

Layaway

How it works: When you put an e-bike on layaway, you pay a deposit so the store will set the bike aside for you. You can then make regular payments or pay a one-off lump sum to cover the rest of the purchase price, and you become the owner of the bike once you’ve paid off the full amount.

Suited for: People who don’t want to borrow any money and people with bad credit.

Lease-to-own

How it works: Some e-bike retailers offer lease-to-own (or rent-to-own) plans where you can make monthly payments to rent and use an e-bike. At the end of the rental period once you’ve made all the required payments, you own the bike. However, be aware that the total amount you end up paying will typically be significantly more than the upfront purchase price.

Suited for: People with bad credit.

Can I use Buy Now Pay Later to finance an e-bike?

Yes, you might be able to use Buy Now Pay Later (BNPL) financing to buy an e-bike. This payment option is available at checkout from some retailers and e-bike manufacturers, and it allows you to divide the purchase price up into multiple payments as part of a short-term payment plan.

For example, let’s say you want to buy an e-bike for $1,600. You’d pay the first $400 at checkout, then make three more $400 payments at two-week intervals to complete the purchase.

There are often no interest charges, and while some BNPL services require you to pass a credit check, others don’t.

However, keep in mind that you may not be able to access a high enough credit limit to cover the cost of an e-bike, with some providers offering maximum limits of around $1,500-$2,000. You should also be aware that high fees may apply if you miss payments, while the returns process may be complicated if you decide you’ve bought the wrong bike.

E-bike financing with bad credit

If you’ve got bad credit, there are still multiple ways to finance an e-bike in Canada:

• Personal loan. Many online lenders offer bad credit personal loans with lenient eligibility criteria. However, steep interest rates often apply, so you’ll need to be sure you can afford to repay what you borrow. Learn more about the best bad credit loans.
• Credit card. It will be hard to qualify for a new credit card if your credit history is less than perfect, but you may be able to use an existing card to buy an e-bike. It’s a convenient way to finance an e-bike and you can take advantage of interest-free days, but you’ll want to make sure your card has a low rate to minimize interest charges. It’s also worth remembering that using up a sizeable chunk of your credit limit can hurt your credit score.
• In-store or manufacturer financing. You may be able to qualify for a Buy Now Pay Later plan with bad credit. However, low credit limits mean you may not be able to afford the e-bike you want.
• Layaway. You might not need to pass a credit check to put an item on layaway. The downside is that you’ll need to wait until you’ve paid off your e-bike in full before you can ride it.
• Rent-to-own. You can qualify for a rent-to-own plan if you have bad credit. But be warned that this is usually a very expensive option — you could end up paying significantly more than the upfront purchase price.

Is electric bike financing with no credit check available in Canada?

Yes. If your credit history is less than perfect, it’s possible to finance an e-bike in Canada without completing a credit check.

One option is to get a personal loan from an online lender. Many lenders offer no credit check loans to suit people with bad credit, but high interest rates often apply. It’s worth comparing some of the best installment loans and their lender eligibility requirements to find out what’s available.

Layaway is another option worth considering. While it means you’ll need to wait until you’ve paid off your e-bike before you can actually ride it, the fact that you’re not actually borrowing money means you typically won’t need to complete a credit check.

How to save for an e-bike

If you don’t want to take on debt to get an e-bike, these tips can help you save the money you need to buy it outright:

• Create a budget. Put together a weekly budget to work out how and where you spend your income. Do you have enough left over after all your regular expenses to pay off an e-bike?
• Work out where you can cut back. Next, think about the areas of your life where you can cut back on spending, like cancelling the gym membership you never use or eating out a little less often.
• Open a high-interest savings account. Make your money work harder for you by opening a dedicated savings account. Compare high-interest savings accounts to get the best bang for your buck.
• Automate your savings. Set up a recurring transfer from your chequing account to your savings account. That way you’ll grow your balance each week or month without lifting a finger.
• Avoid temptation. Don’t give in to temptation and dip into your savings account to pay for things you don’t really need. Keep your eyes on your savings goal: a shiny, new e-bike.

Representative example: Phil finances an e-mountain bike

Phil wants to get active and lose a little bit of weight, and after a test ride on a friend’s e-mountain bike, he decides he wants one of his own. But with the model he wants retailing for $4,000, Phil knows he can’t afford to buy it outright on his current budget. He doesn’t want to dip into his rainy-day fund to buy the bike, so he decides to compare e-bike financing options from four different lenders.

Check out the results of his comparison in the table below.

	Lender A	Lender B	Lender C	Lender D
Amount borrowed	$4,000	$4,000	$4,000	$4,000
Interest rate	0%	11.99%	13.99%	7.99%
Loan term	18 months	48 months	36 months	12 months
Admin fee	$99.99	$0	$0	$0
Total interest	$0	$1,055.15	$920.88	$175.22
Total cost	$4,099.99	$5,055.15	$4,920.88	$4,175.22
Monthly payment	$227.78	$105.32	$136.69	$347.94

Phil decides to apply for financing from Lender A. It offers the cheapest total cost of the four lenders compared, and Phil knows he can manage the $227.78 monthly payment on his current budget.

Bottom line

If you’re not paying the full purchase price of your new e-bike upfront, there are several e-bike financing options to consider. Make sure you shop around to find convenient and affordable financing that won’t leave you spinning your wheels.

Frequently asked questions

• Can I get an e-bike on finance in Canada?

  Yes, there are several ways to finance an e-bike in Canada. You could buy your new e-bike with a low-rate credit card, take advantage of in-store or manufacturer financing, or even take out a personal loan. Layaway may be worth considering if you want to take advantage of sales without taking on any debt, while rent-to-own programs are another option (albeit an expensive one).

• Am I eligible for e-bike financing?

  Eligibility requirements vary depending on the lender and the type of financing you choose. However, you will generally need a steady source of income to qualify, while minimum credit score requirements may apply with some lenders.

• I'm searching for e-bike financing in Toronto. What are my options?

  You can finance an e-bike in-store, through the bike manufacturer, or by purchasing with your credit card. Other e-bike financing options in Toronto include layaway, taking out a personal loan, or considering a rent-to-own program.

• Can I get 0% e-bike financing?

  You may be able to qualify for 0% e-bike financing with a Buy Now Pay Later provider. This allows you to split the e-bike purchase price into multiple payments, with zero interest charged. Alternatively, some e-bike retailers and manufacturers also offer 0% financing on approved credit. However, you may need to meet income or credit score requirements to qualify.

• Are e-bikes worth it?

  It depends on your personal situation. If you're looking for an easy way to commute to work and save on the cost of public transportation or fuel and parking, an e-bike could be perfect. Similarly, if you want to start cycling as a form of low-impact exercise but you want help tackling steep hills, an e-bike may be a good investment.