Purchasing a new or used bike is a personal choice influenced by several factors. Both options have merits and demerits, so one should properly understand all the details before making any decision. As far as Bike Loan is concerned, borrowers should check the bike loan interest rate before applying. This article provides detailed information to help those needing clarification about purchasing new or used bikes.
Factors That One Should Consider Before Buying New or Used Bikes
These factors will help a buyer understand the after-effects of their choice.
- Fluctuation in Loan Rates: The two wheeler vehicle loan interest rate depends on the buyer’s credit history. If the buyer’s credit score is good, interest rates for a new bike will be lower. Otherwise, interest rates for new bikes from banks or other financial institutes will be higher. Bikes are prone to accidents, have shorter sustainability, and experience frequent wear and tear. Used bike prices are lower, so interest rates will be lower, and the buyer can procure the loan quickly. Before applying, the buyer should calculate the interest rate using Bike Loan calculators online.
- Depreciation value: Depreciation is the parameter that decides the worth of an asset over time. As time progresses, bikes and other vehicles have lower depreciation value. Typically brand-new bikes will undergo a significant initial depreciation once they leave the showroom. Such is not the case with used bikes; thus, the buyer will save money in the long run.
- Cost Involved in Maintenance & Repairs: Used bikes are prone to frequent breakdowns and repairs because of their use for a long time. So before buying a used bike, one should thoroughly check all the parts and assess its condition. One should also check the bike’s history to avoid future hassles. New bikes require relatively less repair and maintenance, saving a lot of money.
- Finding Financing Options: Lenders have different interest rates for used and new bikes. Their rates fluctuate with the amount and loan term. The lender also provides various schemes concerning the bike one wishes to purchase. One should check all the financing options before reaching any conclusion.
- Personal Interest: Everything sums up to this point, whether one should opt for a new or used bike. After closely understanding all the above parameters, one should choose wisely. New bikes bring in style, features, and other benefits. At the same time, used bikes will bring in cost savings. One should check their priority in correlation with the budget in hand.
Used Bikes Vs New Bikes
Both used and new bikes have their pros and cons. Here are the points with distinctive details.
- Purchasing a new bike fills an owner’s heart with joy and satisfaction. It instils a sense of pride and achievement in the owner’s mentality.
- New bikes come with advanced features, updated technology, and superior styling. The owner enjoys first-hand experience with all the features.
- New bikes have sufficient warranty periods to cover any malfunction. So the owner has peace of mind during any adversity.
- New bikes do not have prior mechanical problems as it just gets handed over to the owner from the showroom.
- The price of purchasing a new bike is high. But some financial institutions provide competitive interest rates on two-wheeler vehicle loans with favourable terms. So one can choose that financial option too.
- The owner must also pay for insurance costs and install new safety measures.
- Used bikes are less costly than new bikes and fit right into one’s budget. The used bike owner has to pay a lower insurance premium.
- Used bikes are great for beginners as the vehicle has already undergone a lot of turmoil.
- Used bikes have past mechanical issues as many people may have operated them. So used bikes can be unreliable in terms of safety and operations. So maintenance costs for used bikes can also be high.
- While purchasing used bikes, the buyer may have to compromise on colour, features, or model choice. They get what is available in the market.
Buyers can use the information regarding new and used bikes mentioned in this article before buying. For finance, the buyer can research a reliable financial institution or NBFC to get the best interest rates on a two-wheeler vehicle loan. A Bike Loan Calculator can also help calculate the loan’s EMIs and interest rates.