After the COVID-19 pandemic’s global lockdown days, all sectors of the world’s economy were in shambles. The automobile sector was the most hard-hit. Disruptions in the global supply chains led to this situation. Automobile manufacturers around the world are trying very hard to get back to their glory days. Bike manufacturers in India are also trying their best. However, in order to make up for the losses incurred during the lockdown days, bike prices have shot up. This led to the current situation where even an entry-level commuter bike in India costs more than INR 1 lakh!
This is the reason why people planning to buy a bike choose to apply for bike finance.
Why shouldn’t one spend idle cash lying in their bank accounts?
The top reason is simple to understand. Motorcycle loans offer quite a few benefits to buyers. Some of those benefits are mentioned below.
One can have a lot of options when they are backed by a bike loan
The shocking aspect of incessant price hikes for motorcycles is that their sales have not waned! Instead, bike sales in India have gone up. The reason is simple. People choose to finance their bikes. Financing allows one to buy the bike they desire and not the one that can cover their commuting needs. Back in the day, people used to settle for a bike that met their needs. Now, thanks to lenders, one can buy a bike that they fancy without worrying about their financial situation taking a hit.
One can keep their monthly budget intact
The common Indian always relies on a carefully constructed monthly expense plan. This plan allows the common Indian to make ends meet, shop, take a holiday and save for a rainy day. If one buys a bike with the excess cash they have saved over the years, their monthly expense plans fail. This situation is similar to financial suicide for the common person. A bike loan can let one rest assured as the brunt of the expense is borne by the lender. All one has to do is pay the money they owe to their lender in small EMIs over the agreed tenure. Hence, financing a bike is more convenient than buying the vehicle with cash!
The interest rates on bike loans these days are low
Bike loan interest rates offered by lenders in India are very low these days. When compared to a car, home, personal or business loan, bike loans entail the lowest interest rates. But this was not always the norm.
Back in the day, a bike loan was a niche financial product. Bike prices were low and people used to buy a bike with cash. Hence, lenders made very little profit from their bike loan schemes. Not anymore. When demand for a service is low, it will obviously be more expensive to purchase. When the demand for the same service goes up, the service provider will make the service cheap to remain competitive.
This is yet another reason why motorcycle financing is so ‘in-demand’ these days.
One can get a bike loan very easily these days
It was quite hectic back in the day to get a bike loan application approved. One would have had to visit the office of their preferred lender multiple times to get their application approved. The process was slow and took many business days. Not anymore. One can get their bike loan application approved at the bike dealership. All necessary documents can be uploaded remotely via the internet.
Convenience is guaranteed for people willing to finance their bikes. Hence, why even bother to spend one’s savings?
The benefits of financing a motorcycle always outrun the upsides of buying a bike with cash. However, one must always ensure that the lender they are choosing to finance their bike is a reputed one. Selecting a reputed lender begins with research. Hence, one must not be hasty when finalising a lender. To learn more, it is best to consult a professional financial advisor.