Buying a new two-wheeler? It is very important for the people to know the tips for bike finance because an average earning man might put all his hard earned money to build that one asset. For some this might be going to be their daily means of transportation for a long time, and who can enjoy commuting on the two-wheeler with the stress of wrong bike finance. Even a difference of .5% interest rate between two bank finance options can make a huge difference. No one would want that they get to know this problem after they have already got the bank finance.
So in order to get rid of the wrong bank finance nightmare, it is important to know some handy tips in life. This process requires the same amount of vigilance as buying a motorcycle. Let’s check out some of the tips related to the finance of your new bike so that you don’t commit blunders which could have been easily avoided:
#1. Loan Security for Your Bike Finance
The first and foremost thing for the bike finance is the asset you keep in return for this mortgage. In short, in case you tend to skip a monthly instalment or you fail to abide by the contract, the bank can repossess your asset and get the money back. In many cases, banks try to keep that asset as your newly bought cycle. Check once and be clear on what you want to keep as the asset in exchange of the loan. Sometimes keeping your newly bought bike might not be a good option. You will never get the feeling of owning the bike and will live with the fear that it can be taken by the bank authorities any day and anytime, in case you breach the agreement you had signed due to some unavoidable circumstances.
#2. Interest Rates
Of course, bike finance has an extra amount. You have to compare all the interest rates offered in the market so that you can get the best deal and pay less for your bike ride. Pay what is worth it in the market.
#3. Fees attached with the bike finance
People generally fall into the trap of the finance companies having the headlines stating low-interest rate or nominal interest rate. But don’t forget to check the additional fees about which bank might not have stated you, but it’s written between the lines in your agreement. Be clear on this aspect too, so that you don’t feel cheated, in a case at a later stage they share that you have to keep one account associated with it.
#4. Check, If You Can Do The Full Payment After Few Instalments?
Most of the time, people hate to stretch their loans for a long duration and try, if they can get rid of it by paying the full amount in one go. But do check, if your bike finance lets you do that without additional charges.
#5. What’s included in the loan agreement
Check out, if bike finance includes only money for a bike, or you can get accessories also included in the loan amount. It is important to have complete details in the starting itself.
Ask plenty of questions. Don’t hesitate. Talk to your dealer for some guidance also. Try for negotiation from your bank. Don’t get carried away by any one factor, everything needs to be checked so that you don’t end up paying the huge amount for your bike.
These few factors and tips can help you and guide you in a long run. There are a number of deceivers in the market, who might take undue advantage of your weakness and of your innocence. So beware of those people and act smart.