Two-wheelers have significantly influenced the country’s economy; this year, more than 13.5 million bikes have been sold. Two-wheelers are often the first automobiles that people ever own. Bike ownership, however, is not necessarily a need; for many, it is a goal they strive for. This is the perfect moment if you’ve wanted to get your dream bike for a while!
But how can one purchase a bike the best way? Should one use their savings or take out a loan? These are some of the issues that all consumers deal with.
These days, bike loans are affordable. Currently, most top financial institutions offer 100% financing with the lowest interest rates, allowing you to walk into a showroom and leave with your bike. Alternatively, you might put the money aside and forgo interest. You may also purchase the motorcycle using the proceeds from the sale of previous assets. If your bike’s price is a little lower, a credit card might also be helpful.
Which choice ought you to select? Using a credit card, a loan for a two-wheeler, or your savings? Now, let’s investigate.
1. Utilize Your Savings
One approach to purchasing a new electric scooter or a bike is to use your savings. If you have enough money saved up, you can buy the two-wheeler of your dreams and pay the total sum. You can start by deciding how much money you want to spend on a bike, for example, and then setting aside a portion of your paycheck to get there.
Although it may seem like the easiest option, this may not be the most prudent financial move. Instead, you could choose to use your cash savings to establish a travel or emergency fund. Not to mention how long it would take to save the required money, mainly if your income is low. You would also have to cut several expenses that could negatively impact your way of life. If you have a lot of extra money, though, you can save more and save more until you can afford to buy the bike of your dreams.
2. Using Credit Card
Purchasing a bike with a credit card is more cost-effective than utilizing your savings because it’s a more straightforward process. To claim the bike, all you need to do is swipe your card. This approach, however, will only be practical if you select a bike that is within your budget and your credit card permits you to spend that amount up to the credit limit.
Also, consider selling some of your possessions, such as an old computer, bike, phone, etc., if the cost of your motorcycle surpasses your credit card’s borrowing limit. The remaining balance of the bike purchase can then be paid with your credit card and the proceeds from the sale.
If you decide to purchase an automobile with a credit card, proceed with caution. Because credit card interest rates are so high, only use your credit card if you are sure you can pay off the balance in full each month. In addition, if you don’t make your payments on time, the lender may charge you extra interest in addition to the penalty.
But, if the bike of your dreams is within the borrowing limit on your credit card, visit the bike showroom, swipe your card, and you’ll have your ideal bike.
3. Apply For A Two-Wheeler Loan
Should the credit card and savings strategies above prove ineffective, you ought to obtain a two-wheeler loan and purchase a bike. The most popular method of buying a new bike in India is through a two-wheeler loan from a bank or NBFC because it is reasonably priced and requires less paperwork for KYC.
Longer terms make two-wheeler loans more accessible to manage and repay. Additionally, you can finance the total price or just a portion of it with a loan for the amount you don’t already have. Most lenders grant bike loans the same day the application is submitted. Thus, you don’t need to wait to bring your ideal bike home.
Conclusion
You can purchase the bike of your dreams using a two-wheeler loan, credit card, or savings. However, taking out a loan is the best option because it offers low-cost financing and lets you use the money you save for other important things instead of purchasing a bike.
