When New Jersey passed one of the country’s most restrictive e-bike laws earlier this year, plenty of riders, advocates, and bike shops warned that it would have consequences. Now, just a few weeks after the law officially took effect, those predictions appear to have come true.

Bike shops across the state are reporting declines in e-bike sales ranging from 20% to an astonishing 90%, with many saying customers are simply deciding that owning an e-bike in New Jersey is no longer worth the hassle.

The law, which took effect on July 19, requires every e-bike in the state to be registered, from the slowest Class 1 pedal-assist models all the way through faster Class 3 bikes. Riders under 17 without a driver’s license must pass an MVC licensing test to obtain a special e-bike license, while Class 2 throttle-equipped e-bikes and Class 3 models also require insurance, similar to owning a car.

The result has been widespread confusion. Some customers reportedly believe e-bikes have simply been banned outright. Others tell dealers they’ll just buy online and ignore the requirements. And many are choosing not to buy an e-bike at all.

The impact on local businesses has been severe. One New Jersey dealer said sales plunged 90%, another reported a 63% decline, while others described losing between 20% and 60% of their e-bike business. Several shops have already laid off employees, closed rental operations, downsized, or warned they may not survive through the end of the year.

Perhaps most troubling are the unintended consequences for the very people e-bikes help the most.

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