Electric scooter prices have gone down significantly over the last few years, but even what are considered budget electric scooters today are still not trivially cheap.
More importantly, most people want a higher-quality scooter, and those can often end up costing close to or above $1000, which is already a considerable amount of money for most households.
That’s why financing has become a very popular option for buyers. Today, there are plenty of good options available, but there are also a few things you should be aware of if you’re thinking of getting financing for your electric scooter.
|Financing company||Merchants||Payment plans||Interest rate||Time to get approved||Credit check|
|Affirm||Voromotors, FFR, EWheels||Monthly (3, 6, 12, 18, 24, 36)||0% – 30%||1-7 days||Yes|
|Katapult||Voromotors||Weekly, bi-weekly, semi-monthly||Instantly||No|
|Klarna||PureElectric, GeekBuying||Pay in 4, Pay in 30 days, Monthly (6 to 36 months)||0% – 29.99%||4-24 hours||Yes|
|PayPal||Most merchants||Monthly (6)||0% – 23.99%||Yes|
|PayBright||Apollo, UrbanMachina||Monthly (12, 18, 24)||0% – 29.95%||<30 days||Yes|
Can I get an electric scooter on finance?
Financing is often easily available for electric scooters.
The easiest way to get financing is through the online merchant that sells the scooter, as they are often working together with a financing company, and the entire deal can easily be done online with just a few clicks. This is called the buy now pay later financing method, or the point of installment loan.
Alternatively, you can get a personal loan for buying your electric scooter, although that’s a more involved procedure.
How does financing an electric scooter work?
The best electric scooter merchants work together with third-party financing companies that make financing an electric scooter quite simple, and, in my opinion, pretty fair in many cases.
Typically, merchants in North America will provide their customers the option to get financing through Affirm, and merchants in Europe will provide Klarna as the main option. That’s just the general rule, however, as both Affirm and Klarna are international companies that work in most of the Western world. Getting financing for your scooter in the rest of the world might not be available through these companies, though, and it will likely have to be done by getting a loan.
Electric scooter financing with Affirm
The best online scooter brands in the US like Voromotors, FluidFreeRide, and EWheels, will offer financing options through Affirm. To use this option, you have to choose to pay with Affirm at checkout, create an account with them if you don’t already have one, and get approved, which usually doesn’t take too long (but the approval process takes anywhere between 1 and 7 days).
They are one of the first and fastest-growing buy-now-pay-later companies. They provide very transparent and easy-to-understand terms of service (the founder, Max Levchin, is also one of the founders of PayPal).
Affirm calculates an annual percentage rate (APR), which is the interest rate you will pay, and it takes into account your credit score to determine it, but a few other pieces of information as well. There are no hidden fees, and the cost and the interest rate you pay are determined upfront. They offer the options to pay over 3, 6, 12, 18, 24, or 36 months, although usually, it’s either 3, 6, or 12 months.
It is possible that you pay no interest rate through Affirm if your credit score is good. Down payment may or may not be required. Affirm is also known for not charging late fees, and not requiring a credit card as they lend directly to the merchant.
Keep in mind that Affirm may report missing or delinquent payments to credit bureaus, and that may affect your credit score.
Here’s how financing some of the most popular electric scooters in North America would look like through the merchants that offer Affirm as a financing option, assuming you get approved for the entire amount and there’s no need for a downpayment.
|Electric scooter||Original price||Interest rate||N. monthly payments||Monthly payment||Total interest||Price with interest|
|Kaabo Wolf Warrior||$3195||0%||3||$832||$0||$2495|
|Kaabo Wolf Warrior||$3195||10%||3||$845.88||$42.64||$2537.64|
|Kaabo Wolf Warrior||$3195||10%||6||$428.30||$74.80||$2569.80|
|Kaabo Wolf Warrior||$3195||15%||3||$853.01||$64.03||$2559.03|
|Kaabo Wolf Warrior||$3195||15%||6||$434.60||$112.60||$2607.60|
|Kaabo Wolf Warrior||$3195||15%||12||$225.45||$210.40||$2705.40|
|Mercane Widewheel Pro||$1269||10%||3||$430.23||$21.69||$1290.69|
|Mercane Widewheel Pro||$1269||10%||6||$217.84||$38.04||$1307.04|
|Mercane Widewheel Pro||$1269||15%||3||$433.86||$32.58||$1301.58|
|Mercane Widewheel Pro||$1269||15%||6||$221.04||$57.24||$1326.24|
|Mercane Widewheel Pro||$1269||15%||12||$114.67||$107.04||$1376.04|
Electric scooter lease-to-own with Katapult
Voromotors is the only company at the moment that offers easy financing through Affirm, but also offers the lease-to-own option through Katapult as well, which is a partner company of Affirm, and is an even easier way to get financing (often, customers that don’t get approved through Affirm, get approved through Katapult).
Basically, Katapult customers enter into a lease-to-own contract, which is an agreement to lease a product with the option to own it. Once you get the product, you can choose the Early Purchase Option, which will allow you to simply pay for the product and buy it, or you can continue to make the lease payments on a weekly, bi-weekly, or semi-monthly. The first payment is done at checkout.
When evaluating a lease agreement, Katapult takes into account the cash price of the product, the state in which the customer resides, the maximum term a customer can lease the product, and the state/city sales tax rate.
Katapult doesn’t even check the credit history in many cases, which makes it very attractive for a lot of customers with bad credit. The evaluation and approval process is very quick and you can get your financing in a matter of minutes for loans of up to $3500, which will cover the vast majority of scooter purchases.
However, leasing with Katapult can have a high interest rate, and you may end up paying quite a lot more for the product in the end.
Let’s take a look at the EMove Cruiser at Voromotors as an example. With a price of $1499, the initial payment with Katapult might be around $45, and if you pay off the lease in less than 90 days, the scooter may end up costing you a bit more than $1500, which is not too bad. However, the total full-term cost of ownership, which will include all of the lease payments over the course of a year, may end up as high as $2845, which is more than double the original price of the scooter.
So, if you’re getting financing for your scooter through Katapult, make sure you can pay it off in 90 days or less, otherwise, the price may become too large.
Electric scooter financing with Klarna
Popular scooter merchants and stores in the EU and the UK like PureElectric and GeekBuying will offer financing options through Klarna. Getting financing through Klarna involves only selecting the option to pay with Klarna at checkout.
Similar to Affirm, Klarna offers point-of-sale loans. What makes Klarna stand out from the other larger point-of-sale loan companies is that most of their plans are interest-free. They do have some plans with interest as well, but mostly they make a profit by charging small late fees.
The two most popular installment plans offered by Klarna are Pay in 4 and Pay in 30.
With Pay in 4, the payment is split into 4 equal payments that are due every two weeks. Late fees can be up to $7.
With Pay in 30, you pay nothing when you buy the product, and then have 30 days to pay for the product in full. This option is great for customers who just want to try out a product and believe they might return it or ask for a refund.
Besides those two plans, Klarna also provides customers with the option to get financing. Customers can choose to pay back the loan anywhere from 6 to 36 months, and interest rates can sometimes be 0% but they can go up as high as 29.99%, although most loans will have an APR of 19.99%.
Additionally, the Pay Now option that is available through the Klarna app can sometimes help you find price drops and pay less for products.
Klarna does take into account credit card history when deciding whether to approve new clients, but there is no minimum credit score required, and you don’t need a credit card to be accepted. Also, Klarna will report failures to pay on time to credit bureaus.
Electric scooter financing with PayBright
PayBright is a Canadian buy-now-pay-later financing company, that got acquired by Affirm a few years ago. There are several options available, both with and without interest.
The approval process for PayBright is typically very short.
The financing loans can have an interest rate of anywhere between 0% and 29.95%, and the period can be 12, 18, or 24 months, but sometimes even more for larger purchases, like up to 60 months. In addition to the interest rates, you will pay monthly fees ranging from $1 to $4. These payments can affect your credit score, and PayBright needs to check your credit history for approval.
Additionally, PayBright offers installment plans without interest rates, like the Pay in 4 plan, which lets you split the payment into 4 equal bi-weekly payments that don’t affect your credit score. While there are no interest rates with this plan, late payments incur a penalty of $10, and missed payments a penalty of $30.
Electric scooter financing with PayPal
One of the simplest, most universal ways of getting financing for your scooter is through PayPal. In general, every merchant that accepts paying through PayPal will likely enable you to pay monthly as well (which is most online merchants today). You can split payments over $99 in 6 monthly payments.
PayPal will not charge you interest if you make the monthly payments on time, but if you don’t, there could be an APR of 23.99%, or a late fee of up to $40. They will also check your credit score, and probably not approve you if you have one below 700.
Electric scooter financing on Amazon with ShopABunda
Finally, a very useful company that you should be aware of if you’re thinking of getting financing for your scooter is ShopABunda. This is a company that provides financing for Amazon purchases in an easy way, and it may be the only company of this kind. Since electric scooters are often bought through Amazon, and Amazon itself doesn’t offer a native financing option, ShopABunda can be quite useful and help you achieve really low monthly payments.
Getting a loan for buying an electric scooter
Besides the online financing platforms, getting a loan through a more traditional financial institution for buying an electric scooter is also an option. The terms will depend entirely on your bank or the company that gives you the loan, and the process may be more involved, but also it may be worth looking into if you can get lower interest rates or better terms.
Is it hard to get electric scooter financing?
While electric scooters are not very cheap, they are also not too expensive in most cases, so the financing amounts are typically not too large. That’s why getting financing for an electric scooter is often not very difficult. However, it is possible to get denied financing, especially if your credit score is bad.
How long does it take to get approved for an electric scooter loan?
Usually, electric scooter loans take between several hours and one day to be approved. There might be certain exceptions to this, such as with some more complicated situations and loan applications (Affirm can take up to a week, and PayBright up to a month to approve a loan). After the loan is approved, the merchant gets paid within several days.
What is the interest rate for an electric scooter loan?
The interest rate you will pay on your electric scooter financing will vary based on the merchant, the financing company, and, most importantly, on your credit score. People with a good credit score, that choose to pay over a smaller period of time, may even get a 0% interest rate with some merchants and financing companies. However, interest rates can go as high as 30% or more for people with bad credit.
How much is a monthly payment for an electric scooter?
The monthly payment for your electric scooter will depend on the cash price, the number of payments you have to make, and the interest rate of the loan. So, if a scooter costs $1200, and you get financing on it for 12 months at a 10% interest rate, a monthly payment will be $110, and the total price will be $1320.
Can you put a down payment on an electric scooter?
Most financing companies will let you put a down payment for your electric scooter purchase. If you are getting financing for your electric scooter, it is financially sound to put down as much as you can. That way, you will end up paying less interest. That’s why many people simply choose to wait a little bit and save up some money so that they can either pay for the scooter in cash or make a larger down payment and pay less interest later.
Can you buy a scooter with a credit card?
Buying an electric scooter with your credit card is possible. However, the interest rates will probably be much higher than what you can get through one of the online financing companies like Affirm or Klarna.
How can I finance an electric scooter with no credit?
Financing an electric scooter with no credit might be possible through a company that provides financing with little or no credit history checks, or doesn’t require an extensive credit history to approve the financing. The best option in this case might be a least-to-own program like Katapult.
What credit score do you need to finance an electric scooter?
While not cheap, most electric scooters are still not too expensive either, and most of them will not cost more than $2000. That’s why usually there will be no minimum credit score required for financing an electric scooter. Still, the better your score is, the easier it will be for you to qualify and get more favorable terms and lower interest rates, which will result in a lower cost overall.
Do merchants prefer financing?
Some merchants may profit more when you choose to finance your scooter instead of pay for it upfront. They might get a share of the interest you pay to the financing company as additional profit.
Usually, this is more common for brick-and-mortar shops and dealers that may try to offer you financing through a more traditional financing institution. That’s why it’s recommended to find out the price of the scooter from retail stores before you let them know how you’re planning to pay, as they might try and push you towards getting financing through their partners even if you don’t really need one.
This is not very common with online merchants, however, as neither Affirm nor Klarna, the two most popular online financing options, don’t share the interest with the merchants, and online brands will typically have no preference on how you choose to pay for your scooter.
Is an electric scooter a good investment?
Electric scooters are an excellent investment, especially for people who live in developed countries where electricity costs are high. The average electric scooter will pay itself off in 4 to 6 months just by cutting down your transportation costs, and you will end up saving between $400 and $1200 every year.