Two-wheelers have been a major driver of the country’s economy, with more than 13.5 million bikes already sold this year. For many, two-wheelers are the first vehicles they ever own. However, bikes are not always a necessity but a passion many dream of and work towards achieving. If you have been thinking of bringing home your dream bike for long, now is the time!

But which is the best way to buy a bike? Should you take a loan or use your savings to make the purchase? These are some dilemmas that every buyer faces. 

Bike loans have become extremely affordable nowadays. Today, most leading financial institutions provide the lowest interest rates and 100% financing, so you can actually walk into a showroom and ride out with your bike. You could also save up and avoid paying interest. Or you could sell older assets and use that money to buy the bike. A credit card can also come in handy if your bike’s price is on the lower side.

So, which option should you choose? Credit card, a two-wheeler loan, or depend on your savings? Let’s find out:

1. Use savings

One way to buy a bike is to use your savings. If you have enough money saved, you can pay off the entire amount and purchase the two-wheeler you always wanted. You can start setting a goal, i.e., the money needed to buy a bike, then set aside a part of your income to reach that goal. 

While this seems like the simplest way, it might not be the most financially-sound one. You might want to use your cash savings to create an emergency fund or travel fund instead. Not to mention the time it would take to reach the savings amount, especially if you have limited income. At the same time, you would have to cut back on several expenses that can affect your lifestyle.

However, if you have substantial disposable income, you can keep saving until you have enough funds to bring home your dream bike.

2. Credit card

Using a credit card to buy a bike is fairly simple but financially efficient compared to using your savings. All you have to do is swipe your card, and the bike is yours. However, this method will only work if you choose a bike in the lower price range and your credit card allows you to spend that much with its credit limit. 

If your bike’s cost exceeds the borrowing limit of your credit card, you could also sell some assets, such as an old computer, bike, phone, etc. And then, you can use the earnings from the sale to pay part of the bike cost and use your credit card for the rest. 

Choose to use your credit card to buy a vehicle, but with caution, though. Use your credit card only if you know you can settle the dues on time as the interest rate levied on credit cards is quite high. Also, if you miss payments, you will have to pay the penalty and even additional interest, depending on the lender’s policy.

However, if the bike of your choice comes within your credit card’s borrowing limit, visit the bike dealership, swipe your card, and your dream bike will be yours.

3. Get a two-wheeler loan

If the savings and credit card methods mentioned above do not work for you, then you should get a two-wheeler loan and buy yourself a bike. A two-wheeler loan from a bank or NBFC is the most preferred way of buying a bike because it is affordable and requires minimal documentation for KYC.

Two-wheeler loans are easier to manage and pay back due to longer tenures. Also, you can pay a down payment and get a loan for the balance or even get the entire amount financed. Most lenders approve bike loans on the same day of application. So, you do not have to wait to bring home your dream bike.

Tata Capital provides customer-friendly online bike loans to help you buy the bike you have always wanted. Depending on your need for funds, you can take loans of Rs 25,000 up to Rs 2,85,000. Tata Capital offers some of the most attractive interest rates on two-wheeler loans. With Tata Capital, you can finance up to 100% of your bike’s cost.

To Conclude

To buy your dream bike, you can either use your savings or credit card or get a two-wheeler loan. But out of the three, using a loan is the smartest way to buy a bike as it allows you to use your saved money for other critical purposes and provides financing at a low cost. Use the two-wheeler loan EMI calculator to find out how much EMI you will have to pay on your Tata Capital loan, and get set to bring home the bike of your dreams today!

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