With the ever-increasing vehicles on the road, traffic is a menace that is steadily becoming a concern in all the major cities. In such times, the importance of a two-wheeler increases several folds. Not only are they cheaper to maintain and operate on a daily basis but are easy to navigate through traffic as well. It should not come as a surprise that India is one of the largest markets for two-wheelers in the world. And with the fuel prices constantly fluctuating, they tend to be a more economical option as compared to four-wheelers.
If you wish to buy a two-wheeler, there are a few effective tips which can help you finance your bike more efficiently.
- Choosing the two-wheeler:
Two wheelers can cost anything from a few thousand rupees to lakhs of rupees. Gearless scooters are cheaper than bikes and can be used for easy navigation through the city. They are unisex in nature. Bikes on the other hand are more powerful and sturdy for travelling longer distances but cost a little higher. Read more to find out how to choose two wheeler insurance as per one’s requirements.
Tip: So, fix your budget and then choose the appropriate vehicle accordingly. This is the first and the most important step of financing your own bike!
- New or used?
Once you are aware of the type of vehicle you need to buy, you can decide whether you need to buy a new bike or a second-hand one will suffice. This decision is purely yours which needs to be based on your daily utility. If you envisage a higher utility of your bike on a daily basis, then a newer one would make better sense in the longer run. However, if the bike is a back-up solution of transport or would not have a higher usage during the week, then a second hand one is good enough. So, you need to decide based on your pocket!
Tip: A newer bike is definitely more expensive but it has a lesser maintenance cost in the longer run than a second-hand bike. So, choose wisely.
- Fix your budget:
In order to finance your two-wheeler, you need to calculate your disposable income and then calculate how much EMI can you comfortably pay, in case you plan to opt for a loan. That would help you choose the tenure of the loan and the EMI.
Even if you plan to self-finance your bike, fixing a budget is always very important.
Tip: Keep in mind that a two-wheeler loan usually is in the range of 1-3 years, so the budget needs to be calculated accordingly.
- Check your credit score
A person with a higher credit score can get a better rate of interest for a loan than someone with a lower score. Even though, two-wheeler loan is a secured one against your bike and it is usually a short-term loan, credit score does make an impact on the availability of the loan and the rate of interest.
Tip: A good credit score goes a long way in your personal financial health, not just for a loan but for all other products as well. So, maintaining a good credit score is helpful.
- Plan the expense ahead of time:
In case you wish to buy a two-wheeler in a year or so, it can be planned ahead of time by way of saving up for the same.
Tip: A monthly SIP or a recurring deposit for the purpose of self-financing your bike might come handy!
- Credit card
If you need to fund your bike from an external source, you can also purchase the same on a credit card and then convert the purchase on their EMI scheme.
Tip: However, credit cards usually have a very high rate of interest. Opting for a bike loan would be more economical.
Two-wheeler Insurance Online
Last, but not the least, insurance is a must-buy. Not just because it is mandatory, you should buy it because it also offers financial security. This is where a two-wheeler insurance plan comes handy!
You can buy a two-wheeler insurance online as well. All you need to do is compare two-wheeler insurance policies that are available online and then choose the one which best suits your needs.
Getting a good bike insurance policy is also the part of the deal. You can buy the policy from new-age insurance companies for affordable two-wheeler insurance online. You can also get two-wheeler insurance renewal online done from their website, if you want to buy a policy for your existing bikel.
You can compare two-wheeler insurance and save money. For all your two-wheeler insurance renewal online or buying a new policy, do not forget to research, compare, understand, and then buy.