New bike day is like Christmas coming early, the excitement and bubbling joy in your stomach is a wonderful feeling, knowing that you’re going to be cruising around on something so swanky people will be in awe. 

However, getting your hands on a new bike can be difficult, especially in recent years, due to the price hike. Believe it or not, there are ways around this, which allow you to spread the cost, and their popularity is on the rise as more people find out about them. 

Bike finance offers a flexible way to buy a new bike, paying smaller monthly instalments, rather than an up front lump sum. 

What is bike finance? 

You can get finance on just about any kind of bike. retailers tend to offer it in-store and online, which means you can order whatever bike you like. 

It allows you to purchase the new bike you’ve been dreaming of and spread the cost across a period of time that works best for you. It’s just like paying for a car on finance – except usually a lot less. 

Finance is usually available on bikes costing £250 upwards and you can often grab a bargain on finance as well. Bikes on sale can still cost a lot of money, so it’s worth checking the sales section or asking a retailer in-store. 

You’ll go through the usual process of checking your credit score, identity and earnings just to make sure you can afford the finance and won’t get into trouble paying it off. Once these have been checked and approved, most retailers and finance companies will request a small deposit from 5-10% upfront. 

You’ll then agree your repayment terms, which usually end up between three to 48 months and can sometimes be agreed at more or less. You can also often pay all or more than your monthly repayment off should you come into the hands of extra disposable money. 

The interest will vary depending on the cost of the bike and length of your repayment contract, you can sometimes bag a deal which has zero percent interest, but they don’t often. 

Pros of financing a bike 

  • Allows you to spread the cost like a bill 
  • Gives you the option of being able to get an upgrade on what you could afford imminently with a lump sum 
  • If paid off on time and without problems, it can contribute to a better credit score 
  • You can often add on accessories to the finance


Cons of financing a bike 

  • Sometimes people get carried away and buy something that costs them more than is feasible to pay each month – leaving them in a tight situation 
  • Finance will check your credit score, which is often noted on the system whether you take the finance or not 
  • Interest rates can be very expensive 
  • You can’t get out of the deal early, should an issue arise with payments

Remember, if finance isn’t the option for you, there is always the ‘cycle-to-work’ scheme if your employer is enrolled with it. Check out our blog here for more advice. 

Who’s eligible for bike finance?

Terms may differ for each provider, but in general these are the terms you will come across.

  • Over 18 years old 
  • Live in the UK
  • Be either: in full time employment, self-employed (with evidence of income), retired and in receipt of pension. 
  • Happy to set up a direct debit for repayments 

How much can you borrow?

The amount you can borrow depends on the retailer, who is essentially acting as a broker. The minimum is £250 for most places and the maximum can go to £5000, but can sometimes be agreed for a higher priced bike. 

You can often get other products on finance, such as accessories or clothing, as long as they’re above the minimum spend. Have a chat with your local retailer. 

Retailers known for bike finance 

It’s likely more retailers will do it, so speak with your chosen one or have a search on their website where you can find more information.