Two Tern HSD cargo e-bikes vertically parked

Why Are These New E-Bikes so Expensive?

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Many people start their e-bike journey with questions like, how much do electric bikes cost or how much are good electric bikes? If you’ve been researching, you’ve likely encountered a wide price range, from under $1,000 to $6,000 or more. Why such a big difference? And more importantly, how do you decide which one is worth purchasing with your hard-earned money? 

For someone looking to purchase an electric bike or electric cargo bike with the goal of replacing car trips with bike trips, this article will explain why some bicycles cost more than others. From motors and batteries to components and certifications, we’ll explore what contributes to an increased price and, more importantly, the value you’re getting for it.

By the end, you’ll understand the factors driving the higher price tags and be better equipped to choose the best e-bike or best e-cargo bike for your lifestyle and budget.

The E-Bike Motor Affects Price

E-bike motors vary, and the type used in the e-bike can significantly impact its overall cost and performance. The two main types, hub-drive and mid-drive, each have unique benefits and challenges. 

Hub-drive motors are found in most entry-level e-bikes. Positioned in the front or rear wheel hub, they power the bike directly, independent of the gears. This simplicity makes them affordable and reliable for flat terrain or light loads. 

Think of the motor as a helpful wind, pushing or pulling you along your journey. However, because hub motors aren’t integrated into the bike’s drivetrain, they can’t take advantage of the bike’s gears. This limitation makes them less efficient on hills or when carrying heavy cargo, like when riding a family e-bike with kids onboard. This inefficiency also means hub motors have to work harder, draining the battery more quickly and reducing range compared to mid-drive motors.

Electric bike with hub motor

Hub motor for basic cruising (photo provided by Motor Truckrun on Pexels)

Mid-drive motors, in contrast, are positioned between the pedals and work directly with the bike’s drivetrain to provide pedal assistance. By working with the bike’s gears and amplifying the rider’s pedaling effort, mid-drive motors provide an efficient and natural riding experience. This integration allows for smoother, more responsive assistance, especially when climbing hills or carrying heavy loads. This seamless integration with the drivetrain also allows for greater component flexibility, such as outfitting the bike with a belt drive or internal gear hub (IGH), making mid-drive motors a popular choice for higher-end electric bikes, such as front-load cargo family bikes or long-tail cargo bikes designed for demanding use. 

Bosch Cargo Line Mid-Drive motor on the Tern GSD cargo ebike

Bosch mid-drive motor for getting stuff done

If you’re mostly riding on flat terrain and watching your budget, a hub motor might do the job. But if you plan to tackle hills, haul cargo, or simply want a ride that feels more intuitive, a mid-drive motor is well worth the extra cost. Think of it like choosing between a reliable sedan that gets the basics done and a well-equipped crossover with a smoother ride, better performance on hills, and in some cases more advanced features, both have their merits, but one may align better with your needs.

Tern GSD cargo bike carrying a passenger

Mid-drive motors help when carrying heavier cargo

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E-Bike Battery Safety Affects Price 

An e-bike battery stores a large amount of energy, so ensuring its safety is crucial. Manufacturers must design batteries and electrical systems to operate reliably and safely, and this level of care directly influences the price of an e-bike.
When considering battery safety, certifications are one of the most important factors to look for. UL 2849, for example, is a highly regarded certification that evaluates the entire e-bike system, including the battery, motor, charger, and wiring. This certification ensures that all components work together safely, reducing the risk of electrical, mechanical, or fire hazards. While UL 2849 certification is voluntary in many regions, places such as New York City and California are now requiring all e-bikes be safety certified.

UL 2849 Certification Sticker

Look for a UL 2849 certification sticker when buying an e-bike 

Certifications like UL 2849 don’t come easily. They involve rigorous testing, significant financial investment, and strict compliance with high safety standards. As a result, certified e-bikes tend to cost more, but they also provide invaluable peace of mind. Certifications, like UL 2849, are particularly important for electric cargo bicycles and electric bicycles for families. These types of bikes are meant to be used daily and thus require more frequent charging.

Choosing an electric bike with proper certification means you’re investing in a system that has been thoroughly vetted for safety, ensuring a reliable and worry-free riding experience every day.

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How Much Cargo You Want to Carry Affects the Price of an E-Bike

The amount of cargo you plan to carry significantly influences an e-bike’s design and cost. Carrying groceries, work equipment, or passengers on a cargo ebike places stress on the frame, fork, and components. For the best cargo bikes for families, manufacturers may use reinforced tubing or advanced engineering, which naturally increases production costs.

But building a strong bike isn’t enough; it also needs to be lab-tested to prove it can handle the stresses of daily use. Certifications like EN 15194, EFBE, and DIN 79010 indicate that a bike has passed rigorous, independent lab testing for safety and durability. These certifications by a third party may add to the price, but they provide assurance that the bike is designed to safely carry heavy or precious cargo.

Tern HSD cargo bike frame going through rigorous third-party lab testing for safety

 Third-party lab testing for e-bikes inspires confidence 

Some cheaper cargo bikes forego third-party lab testing, helping to cut costs but leaving their reliability under load unproven. While the lower price may seem appealing upfront, these bikes may fall short when it comes to safely transporting your goods or your loved ones, especially in the long run.

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Component Quality Affects the Price of an E-Bike

The quality of components used in an e-bike also has a significant impact on cost. High-quality parts, like hydraulic disc brakes and premium drivetrains, cost more but deliver enhanced performance, safety, and durability.

Hydraulic disc brakes, for example, provide powerful and reliable stopping power, even in wet or hilly conditions. This can make all the difference when riding with kids on a family cargo bike or carrying heavy loads on a cargo electric bike. Premium drivetrains ensure smoother shifting and greater reliability, making it easier to navigate hills or handle daily wear and tear.

Fully loaded Tern GSD e-cargo bike carrying kid on child seat

Quality components deliver a quality ride

Though these upgrades increase the initial cost, they reduce maintenance needs and improve the overall riding experience, making them a worthwhile investment for anyone planning to use their electric bike regularly, and want a durable, long-lasting electric cargo bike.

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How You Buy Your E-Bike Bike Affects the Price

The way you purchase your e-bike also influences its price and ownership experience. Many lower-cost e-bikes are sold directly to consumers (D2C) online. The advantage of purchasing a D2C bike is they are sold directly to the consumer online, which eliminates the middleman and keeps prices down

One trade-off of purchasing a D2C e-bike is that the bikes typically arrive partially assembled, leaving you to finish the job or pay someone else to do it. Additionally, servicing these bikes can be tricky, as many local bike shops won’t service bikes they haven’t sold. Instead, D2C customers often need to rely on web-based or phone support when something goes wrong, which can be time-consuming and less effective than having access to in-person, professional service. 
This lack of local support can make maintaining and repairing the bike more challenging, especially for riders who aren’t comfortable handling mechanical or electrical issues. 

Tern e-bike being serviced at a local bike shop

Never purchase an e-bike without having local service

Buying from a local bike shop also means working with professionals who are e-bike experts in the bike brands they sell. They can help you choose the right frame design, provide you with test rides, and help make sure the bike is in tip-top shape when it leaves the shop. 
For most riders, especially those relying on their e-bike for daily use, the added support, expertise, and peace of mind offered by a bike shop is well worth the investment.

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Conclusion

When faced with the wide range of e-bike prices, it’s natural to wonder, how much is a good e-bike? A better question might be, what type of e-bike or electric cargo bike offers the best value for your needs? While looking at upfront costs can be puzzling, the true measure of value lies in the long-term ownership experience. A high-quality e-bike or family cargo bike may require a larger initial investment, but it can save you money over time with fewer repairs and replacements, a longer lifespan, and an overall better riding experience. By focusing on long-term value, you’ll find the best e-bike or e-cargo bike for your lifestyle, one that’s built to last and worth every penny.

For someone looking to buy an e-bike or cargo bike to ride more and drive less, it’s worth considering an investment in a bike that’s not only enjoyable to ride but also versatile, low-maintenance, and seamlessly integrates into your daily life. Such a decision can help reduce your reliance on cars, lower commuting costs, and make everyday trips more enjoyable.

Tern GSDs with a cargo and passenger set up cycling in the mountains

Living your best life with electric cargo bikes

Put another way, if your goal is to go car-light or eliminate car ownership altogether, the cost of a high-quality electric cargo bike is still significantly less than the average car owner’s annual operating expenses.

Now that you understand how e-bike prices reflect the value they provide, it’s time to explore what you can expect within different budget ranges. Check out our article on setting up and planning a budget to find the best e-bike or family e-bike for your needs.