The latest e-bike buzz is undeniable, with more riders embracing sustainable movement. Government and corporate organizations alike are supporting the growth of e-bikes as an alternative mode of transportation. But here is the smart financial question: are you leasing or buying an e-bike?
Well, opinions differ amongst professional riders on which is the better option: to buy or lease. In this blog post, we will give you a breakdown of leasing and purchasing an e-bike. We will explore the pros and cons to help you choose the best option for you.
Let’s Talk Basics: What Leasing vs Buying Means
Before you decide on what side to pick, let’s clarify what it means to buy or lease an e-bike.
What It Means To Lease An E-bike
Leasing an e-bike is a subscription-based model that allows you to use an e-bike for a fixed monthly payment. But you don’t own this e-bike outrightly.
The good news? You don’t have to worry about insurance, maintenance, or even repair. All of this is already included in your monthly payment. Hence, there’s no need for heavy upfront cost or any form of long-term commitment.
Companies such as Vanmoof offer this service, allowing riders to access a premium e-bike for a low price per month. Although leasing isn’t a common concept in the US, Europeans are familiar with this concept.
What Does It Mean to Buy an E-bike?
Outright ownership is what it means to buy an e-bike. All payments could be made up front or in installments. The bike belongs to you, and it’s your responsibility to handle insurance, maintenance, and repairs. Even modifications and resale are up to you to handle. This is a pay, own, and ride traditional way of acquiring an asset.
Brands like VanMoof make buying a new e-bike easier because of their convenient plan of 3-month installment payments.
Pros and Cons of Leasing
Leasing is a great option depending on the rider’s circumstances and commitment. Here are some perks and drawbacks of this choice :
Pros
Upfront Cost
Upfront cost makes leasing a great option for beginners, adventurers, and casual riders. You get to test the waters without dropping an upfront cost of thousands at once.
Upgrade Flexibility
As a pro rider, you understand the desire to try a new model or ride. Well, leasing makes this possible as you can upgrade to any model of your choosing.
Short-term commitment
If you are on a work trip or vacation and only need an e-bike for a season, the leasing option will serve you better. This will help you save long-term costs.
Maintenance and Repairs Included
Can you imagine a world where you don’t have to worry about either maintenance or repair? Leasing an e-bike takes away this burden from you.
Maximize the Company’s Benefit
If you are based in Europe, especially Germany and the Netherlands, leasing an e-bike could be one of your company employees’ transport programs. A government initiatives for sustainable commuting which allow employers to deduct e-bike lease commitments from your gross income. This cuts down on the overall cost and also lowers your taxable income.
Cons
- Too many parties are involved with lots of documents to fill out, especially if you are using an employee’s transport benefit program.
- Most of the time, leasing contracts take three years, and default or sudden termination of the plan might cost you a huge sum.
- For long-term use, the cost accumulates and surpasses a one-time purchase price.
- You have less control over the bike, as some providers do not allow customization.
Pros And Cons of Buying An E-bike
For active riders, buying an e-bike is a great and smart decision. Below is a list of the pros and cons of buying an e-bike.
Pros
- You gain full ownership, which allows you to resell, customise, and even upgrade the part.
- Long-term savings after payment, as you are only burdened with maintenance and repair costs. And if you learn a few DIY skills, you will spend less on maintenance and repair.
- Incentives and rebates are available to e-bike owners from the government.
- Buying an e-bike is economically wise if you carry gear, commute daily, or are involved in the delivery business.
Cons
- For short-term commitment, the upfront cost is too expensive.
- E-bike maintenance, repair, and servicing parts are solely your responsibility.
- The emergence of newer models with upgraded technology makes you want an upgrade.
- Price depreciation if you plan to resell to upgrade.
Lifestyle Factor: Which One Suits You?
Your lifestyle is a better determining factor of what option is economically best for you. Below is a list of lifestyles that suit both buying and leasing options:
Leasing an e-bike
- Lease an e-bike if you are cycling for the first time.
- This is the best option if you run a tight schedule and can’t deal with maintenance or servicing.
- Best choice for occasional city commuter.
- Only need it for 1 year or less.
- Your employer offers a lesser subsidy scheme for leasing.
Buy An E-bike
- If you have a long-term use and you are not just experimenting for a short-term.
- You are an active riders who have fun while biking.
- You are up to the task of upfront investment of $1000 and probably a monthly maintenance plan.
- You love to customize your e-bike and gain total control of it without a long list of involvement.
Should You Lease or Buy An E-bike?
Leasing or buying an e-bike can be an advantage and disadvantage on riders circumstance. Consider your lifestyle to decide which of the option will favour you.
Take advantage of government incentives to strike a good bargain if you intend to buy the e-bike outright. For leasing, check out with your organization human resource to know if you qualify for a leasing benefit.
For an average quality bike you will spend above $1000 to own one. Leasing on the other hand, will cost an average subscription of $100 -$150 per month.
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