Since its invention, the motorcycle has caught everyone’s fascination, from the older generation to the younger one. It is not just about a thing of possession. For most in India, it’s about the affordable freedom that comes with it – the freedom to travel anywhere, freedom from public transport and freedom to cruise along empty roads.
When it comes to buying a motorcycle, there are things you need to keep in mind before you buy. With the easy availability of finance and flexible repayment options, buying a motorcycle has becomes a lot easier than it was a decade ago. However, since the buying decision is often influenced by emotions, people often tend to make mistakes while availing a motorcycle loan. Here are some tips that may help you make an informed decision when selecting between various options available for financing your purchase.
Motorcycle financing has become so popular in recent years that there are a lot of tricks and tips out there. However, if you are planning to fund your purchase through a motorcycle loan, watch out for these common mistakes that can be avoided.
Common Mistakes to Avoid while going for a Two-Wheeler Loan
- Selecting a Bike before knowing the Approved Loan Amount:
The competition among motorcycle dealers is making them push the limits to supply the motorcycles they want to sell but also sell high-end series. This has resulted in some other factors like choosing a bike even before knowing how much loan money the lender will approve for the purchase and then being converted by the marketing skills of the salesperson and ending up buying a high-end series.
- Lack of Research before Selecting Lender:
It is a fact that home finance has grown exponentially in the past few years. The sudden rise in bike buys has forced multiple lenders to revamp their services and improve their offerings. As a result, many companies have either stopped offering financing options or reduced their scope so as to focus more on servicing existing customers.
Nowadays, most people want a home loan that is easy to repay and highly secured. So, they choose to go for Mortgages. In order to understand a mortgage properly and make the right choice, you should have knowledge about the various types of mortgage available at present.
One of the most common reasons for finance stretch is the “first-time buyer” phenomenon. Many young people are drawn to higher-end riding opportunities like bikers’ events and organized rides, which often come with pricier bikes. When they get in the sport, they find that there aren’t enough miles on their newer bike to match their heart’s desire. So they have to borrow against their new bike through financing deals, which often require a credit application and other forms of verification before funding can be approved.
- Not Reading the Fine Print:
Before signing a financial agreement, you should take in account the actual condition of your finances. To lower the risk of falling into debt trap and keep yourself away from financial troubles, you need to be well informed about bike loan eligibility and know what these mean for you.
- Lack of an Optimum Repayment Plan:
Many borrowers do not plan their repayments and often tend to go for repayment options that have a longer duration and smaller EMI amount. This is done due to poor salary or irregular income, which sometimes leads to frequent defaults on repayment plans without regarding the total amount payable on long-term loans. >>>Read More<<<