Scooters can be a useful way to commute around town. For many people, paying for an electric scooter, GoPed, or moped up front can be difficult. Fortunately, there are a number of ways in financing a new scooter.
Plastic and Cash
The easiest way to purchase a scooter is to pay cash. Everybody likes receiving cash, and with a simple, one-time payment, you can be the proud owner of a new scooter. Unfortunately, a number of people don’t have a large sum of money upfront and may need to resort to other payment methods.
Credit cards are a viable alternative for those with good credit. The main credit card companies are Mastercard, Visa, Discover, and American Express. Make sure to ask if the store accepts credit cards before you make the purchase. As a rule, stores selling expensive items will accept the two most common cards, Mastercard and Visa. Not every retailer will accept Discover or American Express as a form of payment, so be sure and ask the vendor before you confirm the purchase.
Through a Third Party Lender
If you do not have the cash or credit to purchase a scooter, you can apply for a financing plan through a number of third party lenders. Many of the more popular stores will have finance plans of their own, so be sure to ask the salesman about your payment options. Alternatively, you can apply for a small loan from your local bank or credit union. If you already have an account with a bank, and have always been in good standing, then the chances of being approved are greater.
It is important to note that you must have a decent credit record before you can be approved for a loan. If your credit report shows a number of late payments, defaulted loans, or bankruptcy, the chances that you can have your scooter financed are less.
What to Look For
If you do decide to get a loan or payment plan, be sure to read all of the terms and conditions before you sign anything. It’s important that you don’t just a plan with bad rates and end up paying double the sticker price in the long run.
Good payment plans will usually have a zero down payment and flexible interest rates. Some of the more popular plans include the following:
1. A payment plan over 3 years with a 2.5% interest rate.
2. Six months with no interest, then payments with 12% – 13% interest.
3. 13% interest over four years.
For the second plan, be sure to check if there is a minimum and maximum payment. Ideally, you will want to pay it off as fast as you can. Interest adds up and can end up costing you a lot in the long run.
Overall, if you plan on financing a new scooter then you have a number of options available. Ideally, you will want to have good credit so that you will get the best deal with the lowest interest. Whatever you decide, make sure to do your research and read the terms and conditions carefully.