Traffic is becoming a problem increasingly in all big cities. With more and more vehicles on the road every day, a two-wheeler has become more convenient than ever.
Not only are they affordable to maintain and run daily, but also they are easy to ride in traffic. If you are planning to purchase a two-wheeler, here are a few good tips to help you finance it better.
- Choosing a bike: Two-wheelers can cost anywhere from a few thousand rupees to lakhs. Scooters with no gears are lower-priced than bikes. Bikes can be more robust and durable. So, they can be used for longer distances and cost a bit more.
- Is it new or used? Once you know what kind of bike you need, you can decide if you need to buy a brand-new bike or if a used one will work. This choice can be entirely up to you and should be based on how you use it every day.
If you plan to use your bike more every day, getting a newer one may make more sense in the long run. But, a used one may be fine if the bike is just a backup way to get around or may not be used much during the week.
Tip: A newer bike is more expensive but can cost less to keep up over time than a used bike. So, make a good choice. Also, if you’re more inclined towards buying a used bike, then check the existing two wheeler insurance policy to check its validity and coverage. *
- Fix a budget: To pay for your two-wheeler, you need to figure out how much money you have saved and how much EMI you can comfortably pay if you plan to get a loan.
Even if you plan to pay for your bike yourself, you should still make a budget.
Tip: Keep in mind that a loan for a two-wheeler can usually be for 2–4 years, so your budget needs to take that into account. An additional expense would be a two wheeler insurance, which you need to keep in mind while budgeting. Use a two wheeler insurance premium calculator to ascertain the bike insurance price for your reference. *
- Check your credit rating: The interest rate on a loan may be better for someone with a higher credit score than for someone with a lower score. Even though a two-wheeler loan is secured by your bike and is usually for a short period, your credit score affects your ability to get the loan and the interest rate.
Tip: A good credit score makes a big difference in your financial health, not just for loans but for all kinds of things.
- Figure out the cost ahead of time: If you want to buy a two-wheeler in a year or so, you can start saving up for it now.
Tip: If you want to pay for your bike on your own, a monthly SIP or recurring deposit might come in handy.
- Credit card: If you need to get money for your bike from somewhere else, you can buy it with a credit card and then put it on their EMI plan.
Tip: However, credit card interest rates may often be very high. It would be more affordable to borrow a bike loan than to opt for a credit card EMI plan.
Lastly, you must buy a two wheeler insurance policy. It would be best if you bought it not only because it is mandatory, but also because it gives you financial security. *
If you want to renew your two-wheeler insurance online or buy a new policy, don’t forget to do some research, compare policies, make sure you understand what each policy covers, and then buy. *
A lot of bikers still don’t know – is PA cover mandatory for bike insurance?. If you are one of them, then no matter the kind or size of the vehicle, all vehicle owners are required by IRDA to get compulsory personal accident cover. The family can therefore seek compensation for Rs. 15 lakh if anything unfortunate happens to a biker while riding the bike. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
