Finance Your Electric Bike
Electric bike financing is a topic that has a lot of parts to it.
Firstly, different retailers may offer different financing options, and there may or may not be tax rebates offered by Canada or by different provinces, at a provincial level.
In this article, we will cover these topics.
A common question that gets asked is, are monthly payments an option for e bikes?
There are many reasons why someone would want to make monthly payments on e bikes.
The monthly payment feature would allow for users to spend less money up front and finance their bike. If someone cannot make the whole payment at once, or just want to keep more of their money in their savings, this is a more cost-effective way of purchasing an e bike.
E bike financing comes in a few options.
First, different retailers may have their own options to finance the bikes.
Another option is Payplan by RBC.
Yet another popular option is Affirm financing.
These options allows you to use a payment method and make payment plans to pay later, and not all at once.
Can You Make Payments On An Electric Bike?
Yes, you can make payments on an electric bike. Getting a Affirm loan is one that is approved by most companies.
Some companies also offer their own financing options. It is best to look into the bike shop and ask them directly what their financing options are for purchasing a bike from them.
What is Paybright (Now, Affirm)?
A monthly payment amount might be more feasible to many users, so having a Affirm account allows a user to fund their e bike in monthly payments. Previously, Paybright, the process is usually quick and simple, and provides instant approval. The Affirm payment plans show the user exactly what they pay up front, so there are no surprises. They would show the actual monthly payment, and not a vague loan amount.
Affirm also offers flexible payment options, where they allow the user to make equal monthly payments in a plan that they choose: between six and twenty four months.
The interest rate on these plans can vary between 0% to low interest, and to regular interest rates.
It is very likely that these can be set up as pre authorized payments that come directly out of your bank account.
For more information, it might be a good idea to contact Affirm for all the details, or the individual retailer who offers this as a financing plan.
Does Trek Offer Financing in Canada?
Yes, Trek does offer financing in Canada for qualified buyers. The two options on their website include:
- 0% interest rate for 12 Months on bikes that are $3000 and more
- A term of 24 Months for bikes $500 and more (no interest rate listed)
Are Ebikes Tax Deductible?
While there are no tax deductibles for E bikes, both Liberals and Greens offered to introduce rebates on their election platforms.
Liberals had pledged a 30% rebate up to a maximum of $500, and Greens promised up to $1000 off the purchase of an e-bike.
In Nova Scotia, there is a rebate of up to $500 for a bike of $1200 or more. An application to claim this rebate can be made using the website: EV Assist.
This may see a rise at some point in the future, but it hasn’t been implemented yet.
Is there a rebate for electric bikes in Ontario?
No, at this time, there are no rebates for electric bikes in Ontario.
Do you need insurance for eBike in Canada?
No, insurance is not needed for eBikes in Canada. The driver will not need a driver’s license, vehicle permit, or license plate to ride or own the bike either. The driver, however, must be at least sixteen years of age or older in most provinces. They must also wear a helmet that is an approved motorcycle or bicycle helmet, and have to also keep the bike in working order.
Make Your Ebike Dreams Come True
Whether you decide to finance your e bike or not, it is a good idea to be aware of the different options out there, so that you can make an informed decision.
While Affirm is a popular financing option, many individual retailers can have their own financing scheme, and it is best to contact the retailer directly to see what they offer, and then compare it with the different options to ensure you are getting the best deal.
Furthermore, even though Canada does not offer rebates for the electric bike yet, there is a good chance that at some point in the future they would offer some kind of incentive, since these are becoming more in demand, and enables a user to reduce their carbon footprint by almost half.