Last Updated on January 29, 2024 by Igor Karni
If there’s one downside to e-biking that the majority of e-bike owners would agree is the most hassling, it’s cost. E-bikes may offer game-changing advantages, but most of them — especially the models truly worth the dough – almost always belong in the “big-ticket” category. Indeed, this is why buying an e-bike can be compared to no less than purchasing any kind of large-scale vehicle, such as a car.
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This rings true for most countries, which is why most people tend to rely on loans when buying the e-bike that suits them, regardless of how lofty its price is. And if you reside in Canada, you are in luck because there are relatively numerous amount of financing options you can choose from.
In this post, we will outline all of them and talk at large about Canada’s e-bike financing as a whole.
Read also: How much does it cost to own an e-bike? And, What is the difference between cheap and expensive e-bikes?
Requirements for Canada electric bicycle financing
Not all of the financing options mentioned here have the same requirements, but there are areas where they meet, so to speak. In Canada, for instance, there are all-encompassing requirements for loans eligibility, and they are as follows:
- Must be a permanent Canadian resident.
- Be at least 18 years old or older.
- At least one or two types of Canadian IDs (e.g., driver’s license, passport, permanent residence card, etc.)
- Have a fairly acceptable credit profile – with approval usually based on analysis of the borrower’s credit report.
These requirements may appear more lenient, considering other countries’ requirements, but it’s quite evident that e-bike financing eligibility is no different from standard bike financing requirements in Canada.
Read also: Best e-bike financing options in the USA, the UK, Canada, Australia. And, Rent, buy, or lease an e-bike?
This could also be attributed to the fairly seamless and quick way you can apply for loans through PayBright, which is the leading option for most e-bike riders in Canada.
Leading E-bike Financing Organizations in Canada
E-bike Financing by Type of Financing Available
| Type of Financing | Options Available |
| Financing by E-bike Brands | Alterego (via PayBright) Biktrix (via Klarna and PayBright) Emmo (via PayBright) Giant (via PayBright) Rad Power (via PayBright) Scooteretti (via PayBright) VoltBike (via PayBright) |
| Financing by E-bike Retailers | Amego (via PayBright) Cit-E-Cycles (via Loans2Go) Ebike BC (via PayBright) Sudbury E-bike (via PayBright) |
| Bank Financing | N/A |
| Other Financing Options | Paypal Credit |
Financing by electric bicycle manufacturers in Canada
If you look over a lot of the Canadian e-bike brands that offer to finance or just go over the table we have created, you’ll soon see that they have one common denominator: PayBright.
It’s possibly the go-to choice for the general Canadian riding public and the favorite tie-up of most companies. Almost all major brands, like Giant, use PayBright for the following reasons:
PayBright – offers a very flexible, no-nonsense way for you to pay for your dream e-bike, and it has no shortage of eye-catching terms like repayment options that offer between 12 to 36 months based on specific provincial laws. Interest rates also start at 0% for 3 months. This increases to 9% for 6 months and 19% for 12 months and beyond.
The entire process can be done fully digitally as well. You only need to enter the exact maximum purchase amount and your personal details, then await approval, which usually doesn’t take a long time.
Take note that there is often a minimum amount required for you to be eligible, though, and this is often dictated by the brand or retailer. These range from $300 to $25,000 to $1,000 to $30,000, to cite examples. It varies a lot that much is certain, and this highlights PayBright’s sheer adaptability. Also, most loans are considered open, meaning borrowers can pay them back at any time without fear of incurring fees or penalties.
Klarna – Developed by WebBank, Klarna’s global reach makes it another option for Canadian riders. Certain brands and retailers offer promotions that offer 0% APR for purchases fully paid within a 6 to 12-month duration. For most standard purchases, though, a 19.99% interest rate naturally applies. And a $35 penalty is usually incurred upon returned payment or late payment.
It uses a daily balance method to determine the current balance. The method involves compounding the interest daily based on new charges, and interest for the previous day (plus fees), then subtracting payments and credits from the total.
Read also: What are e-bike rules and regulations in Canada? And, What to do with e-bike insurance in Canada – in this article.
Financing by electric bicycle retailers in Canada
Most of the retailers said above, like Biktrix and Amego, also opt to partner with PayBright and most are subject to the terms of the said platform. Nonetheless, there are a few like Cit-E-Cycles that also open their doors to other partnerships, namely Loans2Go.
Loans2Go offers loans from $500 to $10,000, with all applications available for submission online. Borrowers have the freedom to choose their monthly payment dates. One advantage of this platform is that they offer comparatively lower rates than the others mentioned here (even lower than credit cards, actually). Loans are open as well, although they only provide a maximum of 3 years for all borrowers.
Bank financing for electric bicycles in Canada
Regarding the seeming absence of bank financing options for e-bikes, most of it hinges on the fact that electric bikes are considered “power-assisted bicycles” or “PABs” in Canada and not as “motorized” vehicles.
Most banks, like Novascotia Bank, for example, only offer loans for motorcycle and leisure vehicles, leaving most riders to just look for specialized e-bike financing instead. Whether this will remain the norm in the country still remains unclear.
Other financing options for electric bicycles in Canada
The sole option available in this category is viable simply because of its global scope. Canadians can still rely on Paypal Credit to actually gain funding for their e-bike.
It has to be made clear, though, that not a lot of local brands and retailers have Paypal Credit as a financing option. At best, this only applies to certain US or international shops that support Paypal Credit AND also happen to ship their products to Canada.
Paypal Credit – You can often enjoy 0% APR from stores that have Paypal Credit as an option, especially if the purchase is fully paid within 6 months. The platform has a very low minimum purchase requirement of $99 (US) to be eligible.
That said, though, the platform has a Variable Purchase APR of a high 25.49% for new accounts. The rate is often determined by the Prime Rate (based on credit card agreement). There’s also a minimum $2 (US) interest charge.
Read also: How much does it cost to own an e-bike? And, What is the difference between cheap and expensive e-bikes?
A few words in conclusion
Since you are opting for electric bike financing, you are probably well aware of the time value of money. It’s obvious that there are a lot of options available to Canadians, just from the comprehensive reference we have made available here.
What’s evident from the facts stated above is that there is an overwhelming preference for PayBright, making it the clear dominant option when it comes to e-bike financing for regular consumers.
That said, we hope that this article will serve as a reliable source of essential information for you to weigh your options more carefully and make a better – if not the best – decision.
Let us know how we are doing! Have another question or a recommendation for us? – reach us via this contact form.
Igor is a sustainable mobility and green energy advocate. His mission for Easy E-biking is to help make electric cycling simple, practical, and fun. Follow him on Facebook and LinkedIn.
