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Electric Bikes: Average Costs & Financing Options

Cost of Electric Bikes & Financing Options
Jason Steele
Jason SteeleUpdated June 5, 2023
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Electric bikes are becoming more and more popular in the U.S. and around the world. In 2023 alone, it’s estimated that 40 million e-bikes will be sold globally. There are lots of reasons to hop aboard this trend. Electric bicycles can be fun to ride, they’re less expensive than cars, and they’re better for the environment than driving. How much are electric bikes? They typically cost a few thousand dollars. Read on to learn more about the electric bike cost and the e-bike financing options available. 

What Are the Different Types of Electric Bikes?

There are three classes of electric bikes, categorized by the amount of motor assistance they give a rider. With Class 1 electric bikes, the motor kicks in only when you pedal, and it stops assisting you when the bike reaches 20 mph. These are generally the most affordable e-bikes, and they can be ridden on city streets and many bike paths. Class 2 electric bikes are similar to Class 1, but they also have a throttle-powered mode in which no pedaling is required. You can use them on city streets and many bike paths.Class 3 electric bikes are pedal-assist bikes like Class 1. However, when these bikes reach 28 mph, the pedal assist stops. Class 3 bikes are faster and more powerful than the other types. They’re allowed on city streets, and are often used for commuting or for transporting items like groceries. However, they may not be allowed on bike paths.Choosing which class e-bike to buy is a major decision you’ll need to make.

How Much Does an E-Bike Typically Cost?

So, exactly how much are electric bikes? The electric bike cost can range widely, from around $300 to over $10,000, depending on the brand and type of e-bike you’re buying. The average cost of an electric bike is approximately $2,000 to $3,000. E-bikes can be a good way to save money on gas, so that might help justify the cost. Plus, there is electric bike financing you can explore. For instance, a personal loan could help fund the cost of a bike. You can explore the top personal loans of 2023 to find one with the best rates and terms for you.

Starting Costs for Low-End or Used Electric Bikes

The cost of an electric bike that’s used or low-end may be as little as $200. However, before purchasing a used electric bike, you should ask the current owner about the age and capacity of the bike’s battery. If you have to buy a new battery shortly after purchasing the bike, the cost could be considerable — anywhere from $350 to $800. Then, examine the battery. If it’s not removable, it could be difficult, expensive, or even impossible to replace it when it dies. If a used bike has been used extensively, you may end up spending more on maintenance and repairs than the cost of buying a brand-new bike. Be sure to do your due diligence before going this route.

Common Maintenance Costs

Like regular bikes, or car ownership for that matter, electric bikes experience wear and tear over time and require maintenance. Batteries, motors, displays, brakes, tires, and controllers are some of the parts that may need maintenance and repair over the course of the bike’s life. Factor maintenance costs into your budget when purchasing an electric bike.Experts advise replacing your electric bike battery every 700 to 1,000 charges. To put that in perspective, most electric bikes can travel between 20 to 60 miles on a single charge. A new battery can cost between $350 and $800. Other common maintenance costs include brake adjustments, which can run between $20 and $30, and patching a flat tire, which can cost up to $20. You should also do a general tune-up on your e-bike every six months, or after 500 miles. A tune-up generally ranges in price from $75 to $100.Recommended: 10 Possible Benefits of Obtaining Personal Loans

What Can Affect the Price of an Electric Bike?

There are several factors that can significantly affect the electric bike cost, such as the type of bike and brand. Well-known brands can cost more, but they may also be more reliable. The battery, motor, and design of the bike can all affect the price as well. The better the battery and the more powerful the motor, the more expensive the bike will generally be. In addition, a bike that has electric components like the battery, motor, and wiring designed within the bike frame can cost more than a bike with an externally-mounted battery and hub motor. There are rebate programs that can help you save money on an e-bike. Some cities provide rebates for electric bikes. For example, Denver offers residents up to $300 on the purchase of an e-bike. Check with your local government to see if it offers a similar program. And some employers offer commuter benefits that can be applied to the purchase of an electric bike. Speak with your HR department to find out if your company has such a benefit.

Financing Your Purchase

Paying for an e-bike with cash can help you avoid paying interest. But if you don’t have the funds on hand, there are several e-bike financing options.Financing at checkout: Many electric bike brands offer electric bike financing at check-out through a third party like Klarna, Affirm, or PayPal. In some cases, the financing may be interest-free. However, there may be late fees or penalties for paying off the amount you owe early. And the interest-free offer may be limited to a specific introductory period. Read the fine print to understand all the financing details before you sign up.Personal loans: Another e-bike financing option is to apply for a personal loan. Personal loans are flexible and can be used for a variety of purposes, including buying an electric bike. With a personal loan, a bank, online lender, or credit union lends you a lump sum that you repay with interest in installments over time. The higher your credit score, the lower the interest rate you may get. The way personal loans work is that once you’re approved for a loan, you may expect to receive funds quickly, typically within one to five days. Credit cards: You could also use a credit card to pay for an electric bike. This can be a fast and convenient way to make your purchase. However, the interest rate on credit cards tends to be high. If you can qualify for a 0% intro APR credit card, you won’t accrue interest during an introductory period. But if you don’t pay off the e-bike before the introductory period ends, interest will kick in.

The Takeaway

Electric bikes can be a cost-effective and environmentally-friendly way to commute to work or run errands, or simply to have fun riding outside. But e-bikes can cost several thousand dollars to buy, and they require regular maintenance you’ll need to pay for. Be sure you understand the full costs of an e-bike before you buy one, as well as the financing options available.If you’re interested in taking out a personal loan to purchase an electric bike, Lantern can help. By filling out one simple form, you can compare offers from numerous lenders all at once to find the best rate and terms for your e-bike needs. Check your rate today with Lantern.

Frequently Asked Questions

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Photo credit: iStock/AzmanJaka

About the Author

Jason Steele

Jason Steele

Jason Steele has been writing about credit cards and award travel since 2008. One of the nation's leading experts in this field, he has contributed to dozens of personal finance and travel outlets and has been widely quoted in the mainstream media.
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