Financing 101: How to Pay for a New Bicycle
Buying a bike is difficult enough without considering how to pay for it. There are many wonderful, inexpensive bike alternatives, but it’s difficult to ignore all of the lust-worthy bikes that tempt you to delve into your retirement savings.
There are a number of various ways to finance a bike, ranging from the most basic—paying cash—to the more complicated bike-specific mortgages, and we looked into the advantages and disadvantages of each. Although your ideal bike may appear to be out of your price range, there are ways to work with bike makers and stores and your bank to get you on the road sooner.
A word to the wise: Riding a great bike does not necessitate going into debt.
Can I Get Business Loans After Bankruptcy?
It’s a question small-business owners and entrepreneurs who have had to suffer the fate of others may be asking in search of funding. If you’re looking for an opportunity to get your business back on track and want to make a fresh start, bankruptcy should not be the end of your story. You can get approved for a business credit following bankruptcy.
It is likely that it is going to require you to devise a plan and exert more effort. It could be a long time and require several small steps, but eventually you can overcome the negative effects that bankruptcy laws in CA can have on your financial future.
A bankruptcy can remain for a period of time on the credit history for a period of 10 years in the event of Chapter 7 and seven years after the filing of Chapter 7 and seven years after filing Chapter 13. Also, be prepared for your score to fall between 130 and around 240 points, depending upon your credit score, as per the FICO score. However you are able to take steps to increase your odds of receiving that business loan or get capital from other sources.
Financing for Bike Shops
Layaway options are available at several local bike stores. Kris Dunbar, owner of Aztec Cycles in Georgia, notes that his shop offers a layaway option. The full price (including tax) is split into three installments if the bike is already in stock. The customer is only required to pay a third upfront and then has six weeks to pay everything off.
“We don’t always stick to that arrangement,” Dunbar adds.
“We inform each customer that it doesn’t matter how many payments they make as long as they are steady and don’t disappear after one payment,” says the company. It can take up to eight weeks or perhaps longer, but they are in good standing as long as they keep paying.”
Using Your Credit Card
If you have a credit card that you routinely pay off and that offers significant rewards or points for money spent, buying a bike with a credit card can be a smart option. Of course, the sooner you pay things off, the better, so make a plan and avoid the urge to buy a bike on credit. On the other hand, Trek has its credit card, which is accepted at over 1,000 Trek stores across North America.
The card is an excellent value because it provides six- and 12-month “No Interest Payment Plans,” which means you won’t be charged interest if you pay off the bike within those time frames.
Some businesses, such as the Virginia Credit Union, offer bicycle-specific loans. It’s worth inquiring about them with your bank or credit union; they usually have cheaper interest rates because you’ll often pay off a bike faster than a house or car.
Pay Cash for a Less Expensive Bike
If you’re buying a secondhand bike, sellers are typically prepared to work out a deal—especially if you have cash on hand and are ready to buy. Haggling is possible at some bike shops, but it’s uncommon. Still, the best approach to avoid an irritated spouse, a sad bank statement, or furious creditors is to limit your spending and pay cash. While the most expensive bike in the shop may be ideal, don’t overlook the mid- or low-end models, especially since top-tier technology sometimes finds its way into more affordable versions.