As days forge ahead, EUCs are becoming more sophisticated; which in turn, makes them more expensive.
Many retailers offer financing for electric unicycles to keep sales coming, and I think it is a bad idea, especially for hobby riders.
6 KEY Reasons Why Financing An EUC Is Not A Good Idea
High Interest Rates
When you finance a purchase, you often end up paying significantly more than the original price due to high interest rates.
Many financing deals for electric unicycles come with interest rates that can quickly inflate the overall cost.
For example, a $1,500 unicycle might seem manageable, but with an interest rate of 20% overall, you’ll end up paying $1,800 by the end of your payment term. This extra cost could be avoided by saving up and buying the unicycle outright.
Depreciation
Like cars, electric unicycles depreciate over time.
The moment you take it out of the box and start using it, its value begins to decline. If you finance your unicycle, you might end up owing more on the loan than the unicycle is worth in just a few months.
This situation, known as being “underwater” on your loan, can be financially burdensome, especially if you need to sell the unicycle or face unexpected financial difficulties.
The depreciation rate mostly depends on the usage of the EUC, and how the electronic components have been used. For instance, if the battery doesn’t hold juice for long, you will be lucky to get any meaningful offer.
For reference, the Commander GT Pro cost over $4K when it was new. A year later, it’s going for less than $3K. If that is a brand-new wheel losing $1K value within a year, how about a used one?
Rapid Technological Advancements
The technology behind electric unicycles is evolving at a rapid pace. New models with better battery life, improved speed, and enhanced features are released frequently.
If you finance a unicycle, you might find yourself locked into payments for a model that becomes outdated quickly. Paying off a loan on an obsolete unicycle while pining for the latest model can be frustrating and financially straining.
The Allure of Overextending Yourself Financially
Financing makes it easy to spend beyond your means. When you opt for financing, the focus often shifts from the total cost to the monthly payment.
This mindset can lead you to purchase a more expensive model than you can afford, simply because the monthly payments appear manageable.
The reality is that you are increasing your debt, which can have long-term negative effects on your financial health.
Lack of Flexibility
Financing an EUC purchase ties you down to a specific payment schedule. If your financial situation changes, such as losing a job or encountering a medical emergency, you may struggle to keep up with payments.
Defaulting on a loan can lead to repossession of the unicycle and a negative impact on your credit score. By purchasing outright, you maintain financial flexibility and avoid the stress of monthly payments.
Unforeseen Maintenance Costs
Electric unicycles, like any other electronic device, require maintenance and occasional repairs.
Financing might stretch your budget to the point where you can’t afford these additional costs. If something goes wrong and you can’t pay for repairs, you’re stuck with a non-functioning unicycle and ongoing payments.
Paying for an electric unicycle in full allows you to reserve funds for maintenance and other unexpected expenses.
Alternatives to EUC Financing
If owning an electric unicycle is something you’re passionate about, there are smarter ways to go about acquiring one without resorting to financing. Saving up and paying in full is the most straightforward and financially responsible option. Alternatively, you could look for used models, which are often significantly cheaper. Some sellers might even be open to negotiating a price, further reducing the cost.
Renting is another viable option if you want to experience an electric unicycle without committing to a full purchase. Rental services are becoming more common and offer a great way to try out different models without any long-term financial obligations.
In Summary
While electric unicycles offer exciting possibilities for personal transportation, financing one is generally not advisable due to the high interest rates, depreciation, and rapid technological advancements that can make your purchase outdated quickly.
Add to that the unforeseen maintenance costs, lack of flexibility, and limited financial benefits, and it’s clear that financing is not the best choice for most buyers. Exploring alternatives, such as saving up or buying used, can help you enjoy the thrill of riding an electric unicycle without the financial pitfalls associated with financing.