Should I buy an E-Bike or E-Scooter using Financing or Outright Cash?

If you are an e-bike customer in Singapore, we now offer 4 different financing options for your e-bike and e-scooter. The 4 different options are: 1. Cash outright 2. Credit card financing 3. Cash Financing 4. Short-term cash Financing. Which is the best option suited for your needs and situation?

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We compare 4 different payment options for e-bike and e-scooter Financing

In a modern and technological advanced society like Singapore, people are always finding new ways to move around in a flexible and easy way. While public transport is an easy option for most Singaporeans, it is not necessarily the cheapest one.

The latest and one of the most affordable option will be the all new and foldable Electric Bicycles or E-Bikes. Getting an E-Bike may not be the cheapest upfront, but the running cost of an E-Bike is about $0.005/km or $0.30 per 60km.

With the current pandemic situation, you might not want to squeeze in a train full of other passengers. So why not ride to work and enjoy the morning breeze?

Here is how you can get/plan for one!

Cash upfront Payment

Cash is king! Many people will prefer to put full cash on a device. This option usually allows you to have more bargaining power with the retailer such as free gifts or a slight discount. Cash payment is always preferred as it is fuss free for both the retailer and customer.

Depending on the retailer, you are expected to get a discount/gifts worth of $50 to $100.

However, you will need to set aside around $1300 for an electric bicycle. This option is not the cheapest for everyone and given the current difficult times, paying $1300 upfront may not be the best option.

If you do not have the amount readily available, then you may have to save up for it. The opportunity costs of saving up could be loss of food delivery income or loss of savings in taking public transportation. So the longer you wait to save up this amount, your opportunity costs goes up!

A typical food delivery rider earns at least $1,800 per month and public transportation costs is about $280 per month. So you are either losing $1,800 per month or spending $280 per month when you could be spending nothing owning an e-bike!

Credit Card Financing

Credit cards are one of the simplest and easiest way to pay for items. While it depends on your card company, many of them do offer 0% interest instalments with payment periods of up to 36 months!

Financing on a credit card will mean that you do not have to go through the process of a credit check and finding a guarantor. However, not all retailers offer this option as offering credit card payment option is quite costly, this is especially true when the retailers are giving out huge discounts.

Here we have a breakdown of what you will be paying a month on a $1300 E-Bike:

Instalment Period6 Months12 Months24 Months36 Months
$/Month*$217$109$55$37

*all figures rounded up to the nearest whole number for easy reference base on 0% interest

The downside is that freelancers or ad-hoc job workers may not qualify for credit cards. And these are the people who need their e-bike or e-scooter the most since they use these devices for work purposes and as a way to generate income for themselves via food delivery. So this group may have to consider the last option…

Cash Financing

Not everyone has access to credit card so when you are not able to qualify for credit, then this is your most likely option. This is where cash instalment plans help people to get their hands on an E-Bike and start working their freelancing food delivery jobs ASAP.

This is how you can get faster approval by the company.

  • Payslip/CPF contribution (6 months) OR;
  • Working Singaporean Guarantor above 21 years old (may not be required)

Here is how your $1200 E-Bike monthly repayment will look like with a cash instalment plan on 3% interest .

Period6 Months9 Months12 Months
$/Month$236$170$136

*all figures rounded up to the nearest whole number for easy reference base on 0% interest

The figures are not much different in comparison to credit card instalments. It is important for you to look at the terms and condition of the agreement carefully. It is important that terms are in compliance with the Monetary Authority of Singapore (MAS) before you sign the agreement, this helps to protect you as the terms are fair for both consumer and retailer.

While some shops may offer in-house loans, they have huge penalties that are in favour of the retailers. Check with the shops if their terms are under MAS guidelines, if not, avoid them at all cost!

Perks of Cash Instalment

Paying in cash instalment will mean you have the bargaining power of cash payment and enjoy slowly paying up your purchase! By using cash instalment, most retailers incur less cost as they are not charged heftily by the credit card companies. Hence, they typically offer more perks in terms of freebies to the customers:)

It is also important that in times like this, economic situation will make us think twice about making such purchase. By slicing the payment into small chunks, it allows consumer to make better decision and have their own personal transport!

What if the cash instalment period is too Long?

If you think the cash instalment maturity period is too long typically 6-12 months, and you think your sales income can more or less pay for the e-bike before that period, then you may want to consider short-term cash financing. 

Grab Pay has launched a short-term cash financing program called “Grab and Paylater”. Purchase an e-bike and split the payments into 4 bite-size payments within 3 months.

If you are buying for example the MIDO e-bike for $1399, then pay upfront only the first of 4 payments of $350 and you can take your e-bike home. Subsequent payments of $350 will be charged at the end of each month. 

This short-term financing makes sense if you are working full-time for Grab food delivery and you are confident of earning at least $2,000 per month. 

Conclusion

With so many payment options, owning your own personal transport is not a difficult task. However, before you sign any documents, do check with the retailers if they are following MAS guidelines to provide for such hire purchase services.

Here is where you can start owning your own E-Bike and/or e-scooter with our Cash Financing facility here.

Falcon PEV’s in-store 0% 12-month credit card financing plan is available for all DBS and Citibank credit card holders. 

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