As far as cost-effective and efficient modes of transportation go, it’s hard to beat a scooter. They’re affordable, good for the environment, great for short-distance travel, and easier to park.
If you’ve decided on one, you might wonder how to pay for it. (Costs range between $300 and $6,000.)
While we always recommend paying for these purchases with cash if you can, you may have several options for scooter financing, including personal loans, dealership financing, or home equity financing. Here’s a closer look.
Table of Contents
Best personal loans for electric scooter financing
With many companies offering presonal, finding one that suits your financial status and needs might seem daunting. To assist you, we’ve rounded up three of the best lenders in the market, each with a unique approach to scooter loans.
Credible
Why Credible is the best marketplace
Credible lets you compare rates from multiple lenders without affecting your credit score. It offers a user-friendly platform that simplifies searching for a moped or scooter loan. The service to check rates is free on Credible’s site.
- Compare loans from multiple curated lenders
- Get prequalified loan offers in as little as 2 minutes
- Get funded within a few business days
- No option to apply for joint loans
| Rates (APR) | 6.99% – 35.99% |
| Loan amounts | $1,000 – $200,000 |
| Repayment terms | 1 – 10 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: Varies
- Minimum income: Not disclosed
- States: Loan partners may not be available in all states
Repayment terms
Credible loans have repayment terms ranging from one to 10 years. Some lenders may charge a prepayment penalty if you pay your loan off early.
Upgrade
Why Upgrade is the best personal loan for fair credit
Upgrade offers a smart solution if your credit is fair (580 to 669 on the FICO model). It accommodates a range of credit scores and offers flexible repayment options. Its seamless loan application process ensures fast approvals and disbursements, so you can get your scooter sooner.
- Choose your monthly payment and loan term
- Joint applications accepted
- Loan funds may be available in as little as 1 day
- Smaller loan maximum limit
- 1.85% to 9.99% origination fee
| Rates (APR) | 8.49% – 35.99% |
| Loan amounts | $1,000 – $50,000 |
| Repayment terms | 2 – 7 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 580
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
Upgrade loans have repayment terms from two to seven years, and your monthly due date is adjustable to fit your budget. A short-term financial hardship program is available if you’re temporarily unable to manage payments.
Upstart
Why Upstart is the best personal loan for no credit history
Upstart is an excellent lender for scooter financing with less-than-perfect credit (or none at all). The company considers factors beyond your credit score, such as your earning potential. With its almost automated loan approval system, your funds can be ready within one business day from agreeing to the loan terms.
- Funding is available as soon as the next business day
- Borrowers with little to no credit history can still get approved
- No prepayment penalty if you pay your loan off early
- Origination fee of up to 12%
- Limited repayment term options
| Rates (APR) | 7.80% – 35.99% |
| Loan amounts | $1,000 – $75,000 |
| Repayment terms | 3 or 5 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: None
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
Upstart doesn’t offer as many loan terms as other lenders; you’ll pay your loan off over three or five years. You have the option to change your monthly payment due date and prepay your loan in part or in whole at any time, with penalty fee.
Pros and cons of financing an electric scooter with a personal loan
With dealership financing, it’s hard to tell what you’ll get. They may have access to many lenders or be limited to a single lender. You may not like not knowing what financing terms you’ll get when you go straight to the dealer. Here’s what to consider about securing financing with a personal loan.
Pros
-
Already have financing ready
-
May find a better interest rate and terms than at the dealership
-
Don’t have to endure sales tactics related to the financing aspect
-
Can build credit with a positive payment history
-
Fixed interest rates and set installment payments
-
Shorter terms on a personal loan get it paid off faster
Cons
-
Financing at the dealership can be convenient
-
Personal loans have higher annual percentage rates (APRs) than home equity loans or HELOCs
-
Defaulting on a personal loan can result in a lower credit score
-
You may not qualify for a personal loan if your debt-to-income level is too high
Should you use a personal loan or dealer financing for your scooter?
When buying a scooter, you might consider using financing available through the dealer. In some situations, you should consider a personal loan. For others, dealer financing might make better sense.
When you should consider a personal loan for scooter financing
You want more financing options for a scooter or moped
Before you go to the dealer, getting a personal loan for a scooter can help you see what options you have. You’ll already know how much you qualify for, your monthly payment, and what lenders offer you the best rate.
At a dealership, you may not see all the scooter financing options available to you.
You want to determine your budget before shopping for a scooter or moped
Applying for and obtaining a personal loan can help determine your budget. Many personal loan lenders offer a preapproval tool, which can reveal what interest rate, loan amount, and term you qualify for. This is incredibly helpful in determining a budget before you buy the scooter.
You want to flexibility with the funds
Personal loans are very flexible. Once you receive the funds, they’re yours to use as you see fit (even if you specified a purpose on the loan application). If you want to buy a scooter off Amazon or pay for insurance with proceeds from the loan, the loan allows you to do that.
Alternatively, scooter financing with a personal loan is the way to go if you want to buy a scooter from a private seller.
You can qualify based on your income and credit
Personal loans have some qualifications you’ll need to meet, though some lenders specialize in loans for people with bad credit. The better your income and credit, the better terms you’ll be offered for a personal loan. If you have too much debt, you may not be able to qualify for a personal loan no matter what your credit score is.
You want negotiating power
If you already have a loan, you don’t have to work through the dealership’s financing team, which can feel uncomfortable as they try to manipulate the numbers. With financing already in place, it may be easier to negotiate on the scooter’s price.
When you should consider dealer financing
The dealer offers special incentives
Though rare, dealers can offer incentives, such as 0% APR financing, to entice buyers. Those are the kinds of deals you’ll want to take the dealer up on.
The interest rate or fees are lower than on a personal loan
The dealership may be able to offer better terms for financing a scooter or moped. Just be sure to read the fine print and get a complete quote. What’s advertised may not always be what you get, especially when you complete a full application and the dealership considers your credit history, income, debt, and loan variables.
You don’t qualify for a personal loan
If you’re not able to qualify for a personal loan for a vehicle and the dealership can be more flexible with their financing, that might be the only option for scooter financing available to you.
How to get scooter financing with a personal loan
Scooter financing with a personal loan makes the process very easy. On a basic level, here’s what getting scooter financing looks like.
Alternatives for mobility scooter financing
While personal loans are a common option for scooter financing, they are not the only option. There are several alternative financial products that you might want to consider, especially if obtaining a traditional personal loan proves to be challenging.
Home equity line of credit (HELOC)
A HELOC lets you borrow against the equity you have in your home. This option differs from a personal loan because it requires home ownership. HELOCs can carry lower interest rates than personal loans, which can be valuable. However, your home is collateral, which means it’s at risk if you fail to repay.
Crowdfunding
Especially If you need a mobility scooter for medical reasons, crowdfunding might be worth exploring. This method involves raising funds from family, friends, or online communities. Crowdfunding doesn’t require you to repay the funds. But depending on the platform, you might need to pay fees, and there’s no guarantee you’ll reach your fundraising target.
Grants, nonprofits, and insurance options
If the scooter is required for medical purposes, you might qualify for grants or assistance from nonprofit organizations. These sources may not require repayment. However, eligibility criteria can be strict. Health insurance companies or health savings account/flexible spending account (HSA/FSA) providers might also cover mobility scooter costs. This is subject to eligibility and approval.
These alternatives offer unique benefits and drawbacks. We recommend weighing them against a personal loan to determine the most effective and affordable solution for your financing needs.
FAQ
How does scooter financing affect my credit score?
Scooter financing works much like any other type of loan. It has the potential to affect your credit score. When you apply for scooter financing, the lender will often undertake a hard credit inquiry to assess your creditworthiness.
This inquiry can lower your credit score by a few points. But if you manage your loan well by making regular on-time payments, scooter financing could help boost your credit over time. Late or missed payments can hurt your credit score.
What credit score do I need for electric scooter financing?
The minimum credit score required for electric scooter financing varies among lenders. Some lenders may approve loans for borrowers with credit scores below 600, but others might prefer scores of 700 or higher.
A higher credit score indicates less risk to the lender, often resulting in more favorable loan terms, such as lower interest rates. However, other factors like income and employment status may influence lenders’ decisions.
Can get scooter financing with bad credit?
Yes, it’s possible to obtain scooter financing even with bad credit. Some lenders—such as Upstart—specialize in lending to individuals with less-than-perfect credit histories. However, these loans can come with higher interest rates to offset lenders’ perceived risk.
In addition, some lenders might require a down payment or a cosigner to secure the loan. Evaluating these options is crucial because they could lead to more financial strain in the long run.
Recap of the best scooter loans
About our contributors
-
Written by Alene LaneyAlene Laney is a personal finance writer specializing in mortgages, home equity, and consumer financial products. A credit card rewards enthusiast and mother of five, Alene enjoys sharing money-saving and money-making strategies.
-
Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
-
Reviewed by Gail Urban, CFP®Gail Urban, CFP®, AAMS®, has been a licensed financial advisor since 2009, specializing in helping individuals. Before personal financial advising, she worked as a business financial manager in several industries for about 25 years.