How to Save Money When Buying E-Bike

While it can fairly be argued that an electric bike will cut your transport costs sharply compared to other forms, the upfront cost can be prohibitive for many of us. Then again, looking at budget-friendly electric bikes you may notice some quality issues. Cycling Electric looks at the tools available to cut down your bill without compromising on quality or safety'

With competitive price and timely delivery, Seven Running sincerely hope to be your supplier and partner.

Before we dive right in there are some key things we'd like to mention and the first is our Cycling Electric Demo Day series, which to date, has been an unparalleled opportunity to try e-bikes from brands that are very focused on budget and entry-level value products. In the past, we've had brands like Estarli, Hygge, Tenways, Ampere, MiRiDER, and many more on our tracks and these really hone in on quality at a low price. There's no better way to save money than to know you've got the right e-bike first go, so a demo is really important, we believe.

For , our Demo Days are held as follows:

27th April , Odd Down Cycle Track Bath,
18th May , Lee Valley VeloPark London,
8th June , The Brownlee Centre, Leeds
7th September , Herne Hill Velodrome

Aside from these physical test events, do check out our buyer's guides, which have our thoughts on the best e-bikes for budgets inclusive of £1,000, £1,500, £2,000, and even the second-hand buying space. Find those all linked below.

Book your Cycling Electric Demo Day tickets

Use the Cycle to Work scheme

Pros
Probably the greatest saving you can make at up to 42% off the purchase price (which could be discounted too)
Your payments will be spread out over a fixed term

Cons
Unavailable to the self-employed and lowest-paid

The cycle to work scheme should be among your first thoughts when asking yourself if you can easily save money. For the uninitiated, this is one of a few rare salary sacrifice schemes that has survived over the years, whereby you choose your electric bike and pay it back monthly with a sum deducted from your gross pay cheque in accordance with the bike's retail price and the payment term.

Your first step in this process is to check whether your employer has an existing cycle to work scheme partner, something payroll or HR should be able to advise on. If they do not, you may wish to introduce them to companies like The Green Commute Initiative or GoGeta, among others, though these two providers seem, at present, to be offering the best and most flexible terms both to you the consumer and to the partner bike shop you decide to purchase from.

Speaking on behalf of The Green Commute Initiative, Joanna Flint summarises how the scheme works. 'If you want year-round savings on e-bikes, then the Cycle to Work Scheme is the answer. Essentially, it's a tax-saving scheme which you access via a salary sacrifice arrangement with your employer. An added benefit is that salary sacrifice schemes can help move you down a tax bracket helping you keep more of your hard-earned cash. Since , the Green Commute Initiative's (GCI) innovative model means there is no spend limit and no ownership fees to negatively impact scheme savings.'

That ceiling lift has now rolled pout wider in the marketplace and most providers now offer an uncapped spend limit on all of your kit, though the terms and structure of individual providers may vary.

Barry Scott, the Founder of GoGeta helps us crunch some numbers, to give you an example of the savings on offer.

'Say an e-bike is £4,000 at retail price. Via the cycle to work scheme it would cost £2,440. Even better, because cycle to work is normally a 12-month agreement, you pay this £2,440 interest-free over the 12 months. So, people can either pay £4,000 upfront or £203 a month for 12 months via cycle to work. It's a massive difference,' he explains.

In summary, the Cycle to Work scheme enables you to deduct the price of your bike (and any accessories) out of your gross wage, before any deductions have been made. Then you pay tax and national insurance on the lower amount, and can enjoy savings of over 40% on your purchase.

Pros
The flexibility of picking up a bike where you need it and not having to store it at home

Cons
You'll have to go looking for the nearest bikes
Costs have been rising

Now this solution won't meet the needs of everyone and you'll need to be pretty smart with how you play bike share scheme apps or subscription services. If you are using them near daily and paying a daily charge, then the costs are far very quickly going to add up and in fact, all in, you may well be spending enough to cover the cost of a new bike.

Fully Charged, a specialist electric bike retailer that began in London and has since expanded said that it had noted a trend of Lime customers checking their accounts and discovering just this. Dan Parsons from the business told us 'People would often find they are spending £70 to £100 per month. Add that up and over the course of a year you could buy an electric bike and lock, not to mention you'll have an owned asset.'

That said, if, for example, you're using the widely available Lime electric bikes you can buy things like 'Ride Passes' in various formats. Here you can unlock cheaper 24-hour passes, or 200- or 400-minute passes that give you unlimited rides, only capped by the time spent in the saddle. These can work out cheaper, especially since the per-minute charge is now much higher than it was only a few years ago.

As for subscription services, there are more than ever offering electric bikes to a set monthly budget. Among those services most popular at present, Blike is an innovative service that either allows you to pay, or uses the cycle to work legislation to see your employer meet the monthly cost. The perks of going this road include being able to choose the bike you hire, rather than being bound to a hire scheme build. Blike, for example, offers up e-bikes and electric cargo bikes from Cowboy, Estarli, Brompton, Volt and Raleigh. Monthly costs start at £71 per month, so while you may soon spend enough to buy outright, you do gain perks such as included insurance, maintenance and an option to own the bike after a defined period of payment, or simply cancel after one month.

Shop around (e-bikes have never been so cheap)

Pros
There has never, and may never again, be so many steep discounts in the market

Cons
Discount hunting can be frustrating, especially as the popular sizes tend to sell first

Undoubtedly, even in the present climate, you may be looking at the prices of electric bikes and double-taking, but believe us when we say, some of the market's bargains at the present time are simply unprecedented. There has never been and may never again be a better time to snag deals.

We'll let you in on a poorly kept secret; the bike industry is severely overstocked, generally speaking, on the back of a surge in demand and delay in delivery times attributed to the Covid years. As the laws of supply and demand dictate, oversupply means sales. The level of oversupply we're witnessing has never been seen before and so the supply chain is nervously trying to correct before even more stock arrives.

The upshot of this is that when things do stabilise, the market will be very cautious about ending up in the same situation again and prices will likewise solidify at a higher rate, one that accounts for the high inflation that's happened since Covid.

Buying a conversion kit

Pros
You can retrofit to your existing bike
A little cheaper than a new e-bike

Cons
Some kits are similar in price to second-hand e-bikes
Your bicycle may not be designed to take forces of a motor and thus require parts upgrades
It's tricky for a newcomer to understand, but it's all too easy to buy illegal or low-quality kits by accident

There's a good chance you've seen converted electric bikes on the streets by now, in particular if you live in a city where food delivery riders operate. Not all conversion kits are created equal, however and while these can save you hundreds of pounds and are arguably the more sustainable choice in that they enable you to convert your existing bicycle, you'll need to understand what it is you're buying to ensure you're not breaking the laws of the roads.

As you may have spotted in press headlines to do with electric bike speed and indeed fires too, the conversion kit space is, more so than off-the-shelf electric bikes, one that can be fraught with dangers and/or illegality. When purchasing an electric bike kit you are required, if you intend to ride on public roads, to buy something with no more than 250W of power potential and capable of assistance of only up to 15.5pmh. Should you buy anything above that, then legally speaking you're creating a motorcycle and with that you'll need to buy insurance, tax and MOT the vehicle and have a licence. You'll also not be able to ride on cycle paths.

Now, if you're happy to do your research and comfortable in the knowledge that some home kits are best fitted by a professional, then there are reputable suppliers such as Swytch (review here), Boost, Bafang, Skarper and Byqee. Each of these has varying methods to achieve the goal. Bafang's for example, may require the replacement of the bottom bracket to install a mid-motor unit, while Boost tends to rely on a wheel change with a hub motor equipped. Meanwhile, Skarper has a new idea, using a modified disc brake to propel and stop the bike.

Accounting for these modifications, it's worth bearing in mind that you more than likely will have voided the manufacturer's original warranty, which is no big deal on an old bike that's past its terms anyway, but is less desirable if you are still covered. Accounting for the additional forces that you'll be putting through the bike, it's certainly advisable to make sure you upgrade the brakes to a good set of hydraulic disc brakes and also account for the fact that tyres, chains and cogs are likely to wear faster on account of the additional torque going through them.

For context on pricing, a typical boost conversion kit retails from £435 for a DIY kit, while a Bafang mid-motor conversion shows up from £350 onwards. As linked above, the new Swytch Go system is currently available on an early bird rate, but is likely to settle at £599.

Finally, Cycling Electric strongly advises against fitting overpowered kits, even more so if you are not an experienced cyclist. Not only do your legal liabilities change, but very often the levels of power some kits can offer are incompatible with safe operation of what was a bicycle, but is now a DIY motor vehicle.

To recap the legal stuff, here's the rules around what classifies as an electric bike:

An assisted limit of 25kmh (15.5mph)
A maximum power output of 250W
Able to be ridden on roads and cycle paths
Does not need a licence, tax, nor insurance
Is essentially a bicycle in its legal standing
Is based on a pedal-assist system. Throttles are not permitted unless the e-bike is type-approved.

Buying second-hand electric bikes on a budget

Pros
Can be an excellent way to bag a deal
There are an increasing number of reputable marketplaces where listing quality is high

Cons
It's hard to verify, accurately, an e-bike's history without traceable paperwork
If unused, battery may have degraded

As luck would have it, the quality of online electric bike marketplaces has really improved of late. The likes of AutoTrader and BikeSoup have come in and professionalised the second hand electric bike sector, adding to a handful of other specialist websites dedicated to the resale of bikes and e-bikes. Of course, you can also lean on eBay, or Facebook marketplace. Just remember that priority number one when buying second-hand is being fairly sure you are buying from a reputable seller; after all, second-hand marketplaces can often be the platform of bike thieves to move products along.

Once more, we're not trying to discourage you from saving this way, truly you can find some immense bargains on such marketplaces. One notable effect of the comedown on the back of the aforementioned Covid bike boom is that those who flocked to buy e-bikes during the pandemic, well, very naturally there has been some enthusiasm drop off as old habits have died in the face of a return to normality. E-bike sales surged as a result of bike shops being one of few businesses allowed to remain open and cycling being a permitted exercise form. Since then, supply of second-hand e-bikes with low mileage has remained high.

So, if you are going to try to save cash this way, what tips have we?

To up your chances of buying something verifiable, follow a similar process you may when buying a second-hand car. Ask for as much paperwork as possible, just to be sure the buyer is authentic. Any record, paper or digital, is a welcome step to ensuring you are not buying a stolen e-bike.

Next, if you can, take with you somebody who is somewhat mechanically minded. It's useful to have a trained eye look over the frame and key components for obvious signs of fatigue, such as cracks near the welds, as one example of a fatal flaw that would be worth avoiding at all costs. Better still, if you're serious about the bike and the seller is willing, ask to meet at your local bike shop in tandem with an appointment with their mechanic who will run a professional eye over the product. The upside of this is you'll also gain somebody with knowledge of the digital elements, able to check battery health, the condition of the electrics and potentially even be able to spot signs that the bike has been either tampered with or stolen.

Are you interested in learning more about Electric Motorcycle? Contact us today to secure an expert consultation!

Know your brands (and pricepoints)

Pros
You know that the brand is focused on value to a price point

Cons
Know that you will get what you pay for
Lesser known brand name finishing kit is more likely

If you've been going in circles looking around at budget electric bikes you will more than likely have encountered a few brand names repeatedly. There is no shame what's over in declaring that you serve the budget end of the market and some brands do proudly, while others just put forward a catalogue capped at a relatively low price point. Every sector needs an entry level.

So, if you're in the e-bike space and wondering who those brands are that prioritise affordability, but do so whilst maintaining quality and legality in the product brough to market, then we will give you some tips. Look up brands like EBCO, Beameo (lead picture), Estarli, Claud Butler and Mycle, to name a few that we are well familiar with and that we can vouch have a benchmark of quality versus affordability.

Pros
A good way to spread the cost evenly
Make savings on your commute costs now, use savings to pay off bike instead

Cons
Keep an eye on the terms and conditions and be sure you can pay it off in good time.

While not necessarily a way to save money, being able to spread the cost and manage your payments is one way to access the benefits ahead of time, making savings on your transport sooner and thus being able to pay back the full cost faster in smaller, manageable chunks. Of course finance deals have variable terms and conditions and will require you to have a fair credit score, but in many cases when buying an electric bike you can access deals that remain at 0% for a period of at least a year.

Leon Mepham is an expert on consumer finance who works with bike shops to offer their customers V12 Finance packages. He tells Cycling Electric 'Finance options have an APR and a length of time. Examples could include 0% APR over 12 months or 4.9% APR over 24 months. Essentially, there are two types of retail finance. Un-regulated (0% up to 12 months) and regulated (any other finance options).

'Unregulated finance only offers options up to 12 months, so on more expensive ranges the monthly payments may be too much. Therefore, the customer would need to seek out a retailer offering regulated finance with a greater range of finance options. All-in-all, customers need to establish what they can afford per month, how long they're happy to be paying the bike off for and if they're happy to pay interest to have the facility to do so.'

You can access a finance calculation tool by heading to cycleassociation.uk/finance-calculator. 

If you are actively shopping for cheap e-bikes, or to a set budget, why not check in with our guide to the best cheap electric bikes.

Buying electric bikes on a budget: FAQs

How can I be sure that I'm getting good value for my spend?

We always say that it's quite sensible to try before you buy, so we wholeheartedly recommend attending a Cycling Electric Demo event, or visiting your local e-bike showroom for a test ride before you commit your budget to an electric bike. A test ride can reveal a lot about whether you will gel with the e-bike, from sizing considerations, to whether you are comfortable and it will also get you used to the idea of pedal assist and familiarise you with what to expect in terms of feedback on your own efforts.

When budgeting for my e-bike, should I hold back cash for accessories?

This is a personal choice, but we recommend taking note of what comes built in to your e-bike and then considering the essentials that you may need. If it does not have in-built lighting, this is something we would consider semi-essential if you will ride after dark. Likewise, if you intend to use your electric bike for shopping then it's sensible to have some budget set aside for either a pannier rack, if it does not come equipped, but also some compatible bags to clip on.

Which Cycle to Work providers can I use?

A non-exhaustive list of firms you could reach out to for help include The Green Commute Initiative, Cyclescheme, GoGeta, Cycle Solutions and of course, the likes of Halfords and Evans Cycles have their own options if you buy from these sources.

Are electric bikes bought to a low budget risky?

We suggest that you buy from a long-standing manufacturer from the bike world if you want a cast-iron quality guarantee, but if you are shopping for electric bikes on a budget you'll likely be advertised a wide variety outside of this sphere. So, the best advice we can give you is to make sure you are buying an electric bike with a road legal 250W motor and to avoid anything advertised as being above this. Otherwise, try out buyer's guides in the £1,000 to £1,500 range to get started browsing.

In recent years, electric bikes (e-bikes) have surged in popularity as an environmentally friendly and efficient transportation option. Recognizing their potential to reduce traffic congestion and carbon emissions, various government bodies have introduced a range of incentives and tax credits to make e-bikes more accessible to the public. Here's what you need to know about the latest e-bike tax credits and incentives in , and how you can leverage them to save on your next e-bike purchase.

Understanding E-Bike Tax Credits

A tax credit directly reduces the amount of tax you owe, giving you a dollar-for-dollar reduction in your tax liability. This is different from a deduction, which only decreases the amount of income that is subject to tax. For e-bike buyers, this means you can subtract the amount of the credit from your total tax bill, potentially saving hundreds of dollars.

Federal E-Bike Incentive Program

In , the U.S. government has renewed its commitment to green transportation by offering a federal tax credit for e-bike purchases. This incentive is designed to make e-bikes more affordable for the average consumer and encourage more people to consider e-bikes as a viable transportation option. Here are the key details:

• Credit Amount: The program provides a tax credit of 30% of the cost of the e-bike, up to a maximum credit of $900.
• Eligibility: The credit applies to new e-bikes that cost less than $4,000. Both pedal-assist and throttle-activated bikes are eligible, as long as they have a maximum speed of 28 mph.
• Claiming the Credit: To claim the credit, purchasers must file it with their annual tax returns. It's advisable to keep all purchase receipts and ensure the e-bike meets the criteria set by the IRS.

State-Specific Incentives

Several states and local governments have introduced their own incentives to complement the federal tax credit, which can include additional rebates, vouchers, or discounts on e-bike purchases. For example:

• California's Clean Vehicle Rebate Project: Offers rebates that can be combined with federal credits, further reducing the cost of e-bikes for residents.
• Colorado's E-Bike and E-Cargo Bike Incentive Program: Provides significant rebates for purchasing and using e-bikes, particularly for low-income households.

Utility Company Rebates

In some regions, local utility companies offer rebates as part of their initiatives to promote sustainable energy. These rebates can further decrease the upfront cost of an e-bike. It's worth checking with your local utility provider to see if they are participating in such a program.

Additional Savings and Benefits

Aside from direct savings through tax credits and rebates, owning an e-bike also reduces commuting costs, parking fees, and the overall carbon footprint, contributing to long-term savings and environmental benefits.

Conclusion

The growing availability of tax credits and incentives for e-bike purchases reflects an increasing recognition of their benefits for personal health, urban mobility, and the environment. By taking advantage of these financial incentives, consumers can significantly reduce the cost of acquiring an e-bike, making sustainable transportation more accessible to everyone. As these programs continue to evolve, potential e-bike buyers should stay informed about new opportunities to save money and support eco-friendly transportation choices.

With the right information and a bit of planning, purchasing an e-bike in can be an affordable and rewarding investment toward a greener, more efficient lifestyle.