As of October 17, if you're buying a bike from Giant USA, you have a couple of new options. First, if your local dealer doesn't have what you want in stock, you can order a Giant or Liv bike online and have it shipped to a Giant retailer to pick up.
Also available for the first time from Giant is the ability to pay for a bike over time (up to 12 months) with Affirm, an online finance company.
Affirm, started by PayPal co-founder Max Levchin, offers purchasers terms of 3, 6 or 12 months (at an APR of 10-30%) and is targeted at buyers who either would not want to use a credit card, or don't have one.
“Giant understands that bike shoppers may not want to pay for large purchases with credit cards, often times due to confusing terms, compounding interest and unexpected fees,” said Levchin, Affirm CEO. “Many people–especially millennials–either don’t own or don’t want to use credit cards, but they do want a transparent way to pay over time when they don’t have the cash on hand to buy what they want or need. We’re glad to make Giant bikes more accessible to more people.”
The new options are also aimed at benefitting retailers, which will earn up to a full margin on the customer’s online purchase. The ability for consumers to spec and purchase a bike online, and for retailers to still benefit in the process, add both convenience and efficiency, according to the Giant press release announcing the new program.
“Today is a big day for the Giant family, our retailers and riders, as we take our customer experience and satisfaction to the next level with these new additions to our website,” said Giant USA General Manager John “JT” Thompson. “It’s common for our customers to spend thousands of dollars on a new Giant bike and gear, and providing Affirm’s great, transparent financing options is key to ensuring a successful launch into e-commerce. We expect Affirm will convert some aspirational window shoppers, by making bikes and gear more attainable with monthly payment options.”
Affirm offers simple-interest loans with transparent, predictable terms, according to the release. A quick look at the new Giant site shows that, when you look at purchase options, you're shown a quick pop-up box that provides your monthly cost (at the lowest APR, 10%, and longest available term, 12 months) if you qualify for that APR over that term. Your actual monthly cost will depend on the term and the APR for which your qualify based on required underwriting.