Purchasing a new bike can be as easy as walking into a bike shop and chatting with the owner for a half hour or as complicated as buying a house. Likely the more expensive the bike, the more likely it is to get a bit complicated. Unless money is no option or you have been saving for awhile, financing a bike is great option. There are also many options as to how you are going to be financing a bike, such as a credit card, a bike specific loan, or a bike shop pay as you go program. Lets decide which option is best for you!

Credit Cards

Going the credit card route for purchasing a bike is one of the more risky ways of purchasing a new bike, if you miss a payment, but lets hope that doesn’t happen. Credit cards offer great rewards for big purchases and sometimes will reward you for a quicker payoff. Some credit card companies even offer periods of zero to low interest rates, a great tool to capitalize on if you are sure the debt will be paid off. A good reminder that just because your credit card has a $10,000 limit, doesn’t mean you need to max it out when financing a new bike.

Bike Specific Loan

Trek offers a deal which is called a credit card but we will call it a bike specific loan since they own the credit card. They offer special six and twelve month financing plans as well as payment plans for up to 60 months. There is no annual fee with this card, and it is accepted at over 1,000 Trek retailers. Unitus Credit Union of the Pacific Northwest, for example, offers low, fixed-rate bike loans. Unitus is onboard with promoting a healthier lifestyle, and believes cycling is a great way to do that. Unitus has made financing a bike simple, easy and available to almost anyone. Check your local banking options to see if you qualify.

Pay As You Go

This is one option that makes buying at a local bike shop that much better. Try financing a bike at a large department store, doubt it happens, especially as easy as the local bike shop. Financing at a shop can be very simple and normally just requires a talk with the owner or manager and you can be riding a new bike today! Typically a down payment is required and normally a cash down payment will make financing a bike a little cheaper. Local bike shops are understand financing a bike is difficult, but they are there to help!

Buy a Used Bike

Sometimes financing a bike is illogical, but purchasing a used bike makes perfect sense! Maybe you can’t afford your dream bike right now, but there’s no reason you can’t get rolling on something used. Normally if you are purchasing a used bike you can get more bang for your buck anyways. Bike shops may allow you to finance a bike that is used; over the next couple months you can pay back the debt or even work there in your free time!

Bike Insurance

The worst part about financing a bike is that you really don’t own the bike yet. Yes you can ride it, race it, do whatever you want but you are still paying back the debt. If an accident occurs and the bike is broken you are still required to pay the loan back. This is where bike insurance can save you from making payments on your broken bike. Velosurance offers insurance that covers theft, crash and vehicle damage at a low monthly rate. The monthly rate is based on how much you determine your bike is worth and they will cover up to that amount.