Some financing options that can get you on your dream bike today!
Why finance a mountain bike?
Mountain biking is one of the best ways to get outside and makes for great exercise – it’s also a relatively inexpensive sport except for one thing – the upfront cost to purchase the mountain bike itself. Whether you’re looking for a new hardtail or a full suspension, there’s no denying a new MTB purchase can be a lot.
Depending on what you’re looking for, a quality mountain bike can run you for anywhere from under $1,000 up to $10,000 or even more. This is a purchase that understandably can’t be afforded to be paid for outright by everyone that wants to get involved in mountain biking or upgrade their ride. Does this mean you should avoid the sport altogether?
Of course not! Thankfully in 2022 there are many options for riders looking to purchase a bike but who aren’t able to afford to pay the entire cost upfront.
Financing options to pay for your mountain bike
Option #1 – Bike shop financing
Many, if not most bike shops offer some form of financing when buying a bike from their shop. They understand that the cost of a new mountain bike purchase is not something that many can afford to pay up front.
Similar to how a car dealership operates, many bike shops use a financing partner to facilitate the purchase and financing of mountain bikes from their shop.
This allows riders to get on their dream bike now instead of waiting around for months or more while they save up for the entire cost, and converts what would be one big lump sum payment into more affordable monthly payments (or in some cases bi-weekly payments).
Option #2 – Buy now pay later (BNPL) companies
There are many different buy now pay later companies out there, and in fact many of these are already partners with bike shops and manufacturers to allow them to provide their customers a financing option.
However, you as the consumer can still make use of these companies in many cases even if your local bike shop does not. Some of the most popular buy now pay later companies include Affirm, Afterpay, Zip, and Pay in 4 by Paypal.
Affirm can provide you with a one time use virtual card specifically for a large purchase such as for your dream bike. You can simply use it like you would use any other credit card, and once the transaction goes through you will have an installment loan with monthly payments (or biweekly depending on your terms). Keep in mind this will also usually include interest, with interest rates ranging from 0% to 30%.
Option #3 – Credit union bike loans
Some US credit unions offer loans for bike purchases, including Fusion Credit Union, Unitus Community Credit Union, Redwood Credit Union, Providence Credit Union, and Stanford Federal Credit Union just to name a few.
Taking advantage of competitive interest rates offered by these credit unions can allow you to pay for your bike in smaller, regular payments, and are a great option if your budget is stretched.
Option #3 – Credit card
Credit cards are another financing source to pay for your new ride with. More and more credit card companies, including American Express, Citi, Chase and U.S. Bank have special financing arrangements like installment plan programs for their consumer credit cards. Under these plans, consumers are able to enroll eligible purchases (like a shiny new MTB) and then pay off the balance in fixed monthly payments.
The other option with using a credit card to buy your MTB is to simply put the entire balance on your credit card. This is a way to get some new wheels in a pinch, just watch out for the monthly interest costs if you aren’t able to pay your balance in full.
Pros and cons of using financing to pay for your new MTB
Pros
- Get your new ride now instead of waiting
- Open up more MTB options to choose from, including pricier full suspension MTBs
- Allow you to have more fun on the trails and tackle better trails that might require a better bike
Cons
- Interest on the financing can increase the total cost you pay for the bike
- Can eat into your MTB gear budget for many months or even years
Credit score requirements
Whenever you’re talking about financing, your personal credit score will be a factor, and its no different when it comes to financing an MTB purchase. The requirements can vary by lender, and generally speaking the higher your credit score, the easier and cheaper it is to finance a large purchases like a mountain bike.
You are able to get approved by Affirm for an installment loan if you have a credit score of at least 640.
Afterpay does not have any credit score requirement, but makes approval decisions based on whether there are sufficient funds available through your credit or debit card, the purchase price, whether you have other loans with Afterpay and how long you have been using Afterpay.
Zip and Pay in 4 by Paypal do not have clear thresholds for what credit scores they will lend to, but they do conduct soft credit checks, so obviously the higher your credit score, the more likely you are to be approved (all things being equal).
Conclusion
Whether you’re just getting into the sport of MTB or a seasoned shredder, we all know that the cost of a new mountain bike can be prohibitive.
Keep these financing options in mind next time you are in the market for a new ride – it may be more in reach than you think!