Whether you’re looking to lower your carbon footprint or downsize your vehicle, you might want to buy a two-wheeled mode of transportation. But can you finance a scooter or moped?
Even low-end scooters can cost thousands of dollars, which you might not have lying around when you’re ready to buy. Here’s how you can finance your new ride — and decide whether it’s a good idea to do so.
Are you ready to buy a scooter or moped?
Scooters and mopeds aren’t exactly the same, but they’re both two-wheeled motor vehicles. They’re more powerful than a bike but less intense than a motorcycle. They have small engines, and most are limited in speed.
They aren’t for everyone, though. You should take into account weather conditions, safety hazards, and items you typically travel with before buying a scooter or moped. If you live in a state where it rains or snows a lot or if you need to travel with tools or bags, a scooter or moped might not be a worthwhile investment.
But if you’re looking to downsize your car to save money on payments, gas, or both, you might want to consider investing in a scooter or moped. The cost depends on the type of vehicle — just like a car. The cost of a scooter or moped can range from a few hundred dollars to more than $10,000.
If you’re doing only local driving or aren’t doing much driving at all, a scooter or moped might be a good choice.
Can you finance a scooter or moped?
You can finance a scooter or moped, but there are different options for different vehicles.
Dealerships and third parties
Depending on where you buy your scooter or moped, you might be able to finance it through the dealership. Most dealerships and stores offer financing through third-party lenders. Even online sellers offer financing on scooters and mopeds.
Always keep the annual percentage rate (APR) in mind when you take out a loan. The APR is the amount you pay in interest and fees on a loan over the course of a year. A high APR means more money will come out of your pocket.
Don’t settle for dealership loans because they’re convenient; they might not always offer the best terms. Explore your other options first.
You can skip the dealership and its financing options by getting a personal loan instead. Personal loans are a good option if you want to stick with a bank you know, get a better interest rate, or both. You can browse our list of some of the top lenders for personal loans to find the best option for you.
Before you use a personal loan to finance a scooter or moped, make sure you know which make and model you plan to purchase. You should avoid taking out a loan that’s too large since it’ll be that much more for you to pay back. But you also want to cover the full cost of the scooter or moped so you aren’t struggling to afford the purchase.
While personal loans are a big help when it comes to financing, it’s important to read the fine print before you take out a loan. Look at your expected monthly payments as well as the interest rate and terms. If a personal loan is going to negatively impact your budget, look for other payment options.
Can you afford a scooter or moped?
If you’re looking for a different mode of transportation or don’t want to deal with the expense and hassle of a car, getting a scooter or moped might sound appealing. But it’s still an investment. You might save money on gas and upkeep, but you’ll need to buy covers, helmets, and other protective gear.
Don’t forget that Mother Nature doesn’t care about your schedule, either. What are you going to do if it rains or snows? This is something to consider as you shop around.
Do your research before you buy
Can you finance a scooter or moped? Yes. But you shouldn’t buy the first one you see, and you should be sure financing makes sense for you.
It’s OK to get financing help as long as you’re able to make payments on time and in full. Continue being responsible with your credit, and you should be in great shape to get a scooter or moped (if that’s what you decide).
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|