Scooter Financing: Where to Find a Moped or Scooter Loan

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.

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, with its wide marketplace; Upgrade, for those with fair credit; and Upstart, catering to borrowers with minimal credit history.

Lender	Min. credit score	Rates (APR)
Credible	Not disclosed	7.49% – 35.99%1
Upgrade	560	8.49% – 35.99%
Upstart	300	7.80% – 35.99%

Credible – Best marketplace 

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LendEDU rating: 5.0 out of 5

• Vast network of lenders
• Transparent fee structure
• High customer satisfaction ratings

Credible stands out because it lets you compare rates from various lenders without affecting your credit score. It offers a user-friendly platform that simplifies searching for a moped or scooter loan. 

Its transparent fee structure eliminates any fears of hidden charges. Its high customer satisfaction ratings underscore its commitment to customer service, making it the best marketplace for your scooter financing needs.

Upgrade – Best for fair credit 

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LendEDU rating: 4.9 out of 5

• Personal loans for various credit scores
• Flexible repayment terms
• Quick loan approvals and disbursement of funds

Upgrade offers a smart solution if your credit is fair (580 to 669 on the FICO model). It caters to a range of credit scores and provides flexible repayment options, making it easier to manage your loan.

Its seamless loan application process ensures fast approvals and disbursement of funds, meaning you can get your scooter faster. Upgrade is our top choice for fair-credit individuals seeking scooter financing.

Upstart – Best for thin (little-to-no) credit 

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LendEDU rating: 4.8 out of 5

• Accepts applicants with little to no credit history
• Considers applicants’ earning potential
• Nearly automatic funding for approved loans

Upstart is an excellent lender for scooter financing with bad credit—or none at all. The company accounts for other financial factors, 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. Consider Upstart to finance your scooter purchase if you have a poor or no credit history.

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. 

There are other pros and cons to financing with a personal loan you’ll want to consider. 

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. 

Consider a personal loan if …	Consider dealer financing if …
You want more financing options for a scooter or moped	The dealer offers special incentives on the interest rate or terms (e.g., 0% for five years)
You want flexibility with how you use the funds	The interest rate or fees are lower than on a personal loan
You want to determine your budget before shopping for a scooter or moped	Your credit score doesn’t qualify you for a personal loan
You can qualify based on your income and credit
You want negotiating power

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:

1. Prequalify for a loan. Start your search for scooter financing by finding top lenders and going through prequalification with them. Prequalification allows you to see what loan amount, rate, and term you’ll qualify for without a hard credit check. It’s fast and convenient.
2. Select a personal loan lender. Once you see what options you’re qualified for from different lenders, choose one that works for you. You might like the rate on one, the term on another, or the high customer service ratings on another. 
3. Apply. Submit a full application for the loan of your choice. The lender will then pull your credit and review your finances in detail. To be fully approved, you must verify your income, employment, credit profile, debt, and other monthly expenses. 
4. Receive your funds. Funding for a personal loan is usually very fast. After the lender has verified your documents, you’ll often have access to your funds within 24 hours (sometimes later, sometimes the same day, depending on your lender). 
5. Use the funds for a scooter. Once the funds are in your bank account, you can shop for a scooter to fit your lifestyle. As mentioned, the lender doesn’t dictate how to use the funds on a personal loan. You can buy a scooter from a dealer, a private party, or online. 

The personal loan offers set installment payments at a fixed interest rate. You should know exactly what you’re getting into with your scooter loan. 

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.

Gas scooter financing 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.