6 Tips How To Manage Funding For Two Wheeler Purchase?

With the ever-increasing number of automobiles on the street, traffic has become a serious worry in all metropolitan areas. In such circumstances, the value of the two-wheeler skyrockets. They are not always expensive and run regularly, but they're still easier to manage through traffic. Indian markets for two-wheelers are among the largest, which should sound familiar.

They are also a more cost-effective alternative than four-wheelers, given the continuously varying gasoline rates. In this blog, we will discuss a few tips to purchase a two-wheeler.

Tips on How To Manage Funding for Two Wheeler

1.Selecting a two-wheeler


The price of a two-wheeler might range between a few thousand rupees to millions of rupees. The gearless scooter is less expensive than bicycles and may be utilised for quick city travel. They are inherently unisex. Bajaj Bikes, on either side, are much more robust and durable for long-distance riding, but they are more expensive.

Tip: Always Prepare a budget and then buy a vehicle that fits your needs. That's the first and perhaps crucial step towards purchasing your two wheeler.

2.Used or Fresh?


Once you know what kind of vehicle you prefer, you may determine if you want to purchase a new bike or if a used bike would serve. This is a very personal decision that should be dependent on your daily usage. If you plan to use your bike more frequently regularly, a newer model will save you money in the long term. But, if a bike is only a backup mode of transportation or will not be used frequently throughout the week, a used one will suffice. As a result, you must make a decision based on your financial situation.

Tip: While a modern bike is more costly, it will require minimal maintenance in the long term than a used bike. Make sure to make an informed decision. With this, it would be best for you to get your finance on bikes from Bajaj Auto Finance. They have great eligibility criteria that may suit you.

3.Make a budget


Although if you intend to self-finance your bike, setting a budget is essential . To finance your KTM bikes, first, figure out how much discretionary income you have and then figure out how often EMI you can easily pay if you take out a loan. This will assist you in deciding on the Two wheeler loan term and EMI.

Tip: Please remember that even a two-wheeler loan typically lasts for 1-3 years, so make sure your budget accounts for it.

4.Examine your credit score


If you have a higher credit score, you will acquire a lower interest rate on loans than those with a lower credit score. However, a two-wheeler loan is approved against your bike and is typically a short-term loan and credit rating influences the loan's liquidity and interest rate.

Tip: A strong credit score is important for your financial health when applying for a loan and when applying for other goods. As a reason, keeping a good credit score is beneficial.

5.Prepare ahead of time


If you want to buy a two-wheeler in a year or so, you may plan ahead of time to accumulate money for this purpose. Two-wheelers are a good mode of transportation and therefore sometimes it becomes necessary to buy the same at one go. Still, if you can wait for some time, it’s better to save money every month so that buying a two-wheeler does not put an extra burden on your pocket later on.

Tip: If you want to self-finance your bike, consider setting up a regular SIP or recurring contribution.

6.Check how much more Down payment you can afford


When applying for 2W loan, always keep one thing in mind that higher the Down payment, lesser will be the per EMI amount. So, try to provide higher Down payment.

The Bottom Line


Two-wheeler loans are no different from car or bike loans. Two-wheelers offer great benefits, especially when you need to travel long distances in your city - they can be an economical solution for a two-way commute within a short period.

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