Interest free purchase of electric bicycles

We offer 12 months interest free, as well as other finance and repayment options for the purchase of electric bicycles from our Auckland showroom. This means that approved customers can take away an electric bicycle with little or no deposit and start using it straight away, by making regular payments to pay it off.

Considering how much money one saves by using an electric bicycle instead of public transport and/or driving in Auckland, it’s a great option to consider and various pay as you go, finance options, layby, repayments and subscription models have made news in Auckland for this reason. Another popular way to make use of this is to help your budget cover a larger range of bikes. For example some people might have a $2,500 budget for an electric bicycle but find that a bike that suits their need better costs $3500. Interest free finance would allow them to pay $2500, put $1000 on finance and make $20 repayments per week for one year.

So how does it work? It’s a two-step process and while it is possible to do all of this while in store, it’s generally more convenient to get started at home.

1 – Apply for finance through Gilrose Finance here. Although you don’t need to specify which bike you’re going to buy, you do need to nominate a $ amount and a repayment term. The term is 12 months if you don’t want to pay any interest or longer if you need smaller repayment amounts. The amount doesn’t need to be exact either. More info in FAQ below

2 – Assuming you’ve been approved, print off the forms that Gilrose emailed you (they’ll have emailed this to us as well, so we can print them if you cannot). Then come into store with two forms of ID (eg drivers license and bank card), tell us you’ve got approved finance and we’ll help you choose an electric bike. We have to sign your forms and take a photo of your IDs, you have to sign the forms too and away you ride on your new bike! Gilrose will post you physical forms in the mail which tell you how much to pay each month (which is already on the paperwork they emailed you) and how to pay. Set up an automatic payment and you’re done.

Frequently Ask Questions:

  1. Who do you use? – We use Gilrose Finance, a third-party consumer finance provider. Third party means that it’s Gilrose that is lending the money to you, to enable you to walk out of the shop with an electric bicycle before you’ve paid for it. From then on, you’ll be paying weekly or monthly installments to Gilrose, generally through automatic payments from your bank account. This is generally the system you’ll come across in all retail shops that offer payment plans. Other popular ones are GE Money, Q Card and more.
  2. Why do you use Gilrose? – We’ve found it to be reasonably priced (for us) and flexible for you. For example you can choose to pay off early, you don’t have to use the finance if you apply for it and change your mind and you don’t have to use all of it.
  3. Can the finance be used for accessories that I need as well? – Yes, as long as you’re buying an e-bike at the time, you can use finance to pay for your lock, helmet, bags etc as well.
  4. What if I don’t know exactly which bike I’m going to buy? – It doesn’t matter, just apply for a little more than you think you’ll need. You don’t have to use it all.
  5. Can I come in and do this on the spot and leave with a bike? – In theory yes, you can apply while in our store, wait for a response and then take the bike away. But it’s quicker and more private for you to apply at home first and then come in.
  6. Can I use finance on any e-bike in your store? – Not all of them, but for the vast majority, yes. Exceptions may be e-bikes on super special or if you’re using other discounts/promotions at the same time
  7. I think I can afford to just buy an e-bike, should I use finance anyway? – I don’t think so, but it’s up to you. Avoiding finance means saving time and paperwork, avoiding some small fees associated with the finance and keeping your life less complicated.
  8. I have pre-approved finance already from a previous application. Can I use it at your store? – Yes, but only if it’s with Gilrose Finance. We cannot use other finance providers balances here
  9. Is it really interest free? – It is for you! Of course it’s not really, we pay a fee to Gilrose to make it all work.
  10. Are there any other fees? – There are two other fees that you have to pay. One is an account set-up fee for $55. Then there is a monthly account fee of around $3.15/month. Over a 12 month term this makes around $90 which will be spread out over your regular payments. See Gilrose website for more details.
  11. What happens if I miss payments? – It will cost you money that Gilrose will charge you and it is completely out of our hands. If you’re experiencing debt problems, seek help to minimise any missed payment fees
  12. Is 12 months the only option? – No. You can choose shorter or longer terms, but 12 months is the maximum interest free you can get. For example, you may want a $3500 e-bike and are able to pay $500 deposit and need $3000 of finance. 12 months repayment will mean you’re paying $3000 pus the ~$90 fees in one of the Questions above, spread over 52 weeks = ~$60 per week. If that’s outside of your budget, you could choose a 24 month repayment schedule. By the time you get to 12 months you’ll have paid about half off, so you’ll be paying interest on the balance you owe in the period of 12-24 months. That balance will start at around $1500 and eventually get to zero. Because there will be interest to pay in that period, your repayments will be a little more than half of the 12 month option, ie a little more than $30 per week. If you get to the end of the 12 month period and you are in a position to pay off the $1500 balance in one go, you can do that and not pay any interest. There may be a re-calculation fee incurred of around $50
  13. Do I have to pay a deposit?  – Not necessarily, it depends on your financial situation. However, it improves the chance of a successful application
  14. Is it a good idea to rely on savings from owning an e-bike to make my repayments and how much would I save? – We can’t give specific financial advice for your situation. If you think you’re not going to be able to make repayments then it’s not a good idea to borrow money. The amount you save by owning an e-bike will vary. It’s easy enough to calculate how much you’ll save in parking and petrol if you’re already in an established routine of driving, or how much you’ll save in public transport. It’s harder to calculate what you’ll save in maintaining a car in the first year but it’s often more than what you spend in petrol. There’s also savings to be had in avoiding depreciation of a car because it gets less use, but that’s not the kind of savings you’ll see weekly in your bank, it’s in the form of not buying a new car as soon or getting more for the one you sell. Then of course we have countless cases of people getting rid of their car altogether thanks to their electric bicycle and they save thousands of dollars per year. That’s without getting into the benefits of better health, saving time, being more punctual etc which have economic implications for you budget too. However, keep in mind that there are some harsh realities of monthly payments as well – you might fall ill and not be able to ride your bike everyday. A few weeks of rain in winter might be too much to handle and you end up still driving a bit. Someone might steal your bike. And although we provide courtesy e-bikes when we are repairing yours and we avoid stocking any unreliable bikes, there may be some down time when you’re not able to use your bike. The big savings and improvements in your life will come from having an e-bike in the short term and long term, but fundamentally you do need to be able to afford one to own one!