Okay, so you have decided to buy a two-wheeler. What do you do? You look up the different dealerships and visit them, check out different two-wheelers, test-drive the favourite one and zero down on the two-wheeler you desire. Then comes the most important part of the process- finances. You discuss your options with your dealer and more often than not, the dealer will talk you into signing up for the pre-approved dealer loans, which may generally not be the best deal.
What if you are told you should actually go about the entire process the other way round? How about having your bike finance sorted before you actually visit the dealer? It is a better approach, which few people tend to explore.
Let us find out why it is a better approach:-
Opportunity to identify credit problems if any –Credit score is an important criterion for a
two-wheeler loan. When you discuss a two-wheeler loan with your lender, this is the first thing they would check. You can identify the problem if any in your credit score and remedy the situation. If your score is not good enough, you can talk to your lender about measures to correct the same beforehand. This saves you from the hassle later when you are finally ready to ride home your dream vehicle.
You know your budget –Applying for bike loan gives you an idea of the amount you can borrow. Also, you can study the loan terms to get an estimate of the monthly EMI. This will give an idea about your budget and how it would impact your monthly finances. You can then choose the desired two-wheeler in the price range that suits your budget. How disappointing it would be to choose your dream bike only to realise that you can’t get a loan for the required amount? Planning for a two-wheeler loan ahead of time saves you from disappointment later!
You are in control of discussions with your dealer One of the first questions, all dealers tend to ask you when you’re talking about buying a
bike is your mode of finance i.e. whether you would opt for a two-wheeler loan or buy it on cash. Once you tell them you would take a loan, they will juggle numbers to come up for a suitable monthly (EMI) amount for you in a way that you end up paying a higher price for the bike. You can avoid this situation altogether when you walk into a dealership with a pre-approved two-wheeler loan. You are then like any other cash buyer who is just concerned about the price of the vehicle.
Accelerates the Buying Process –Once you have your loan offer, you only have to finalise the bike. You are only a step away from riding the bike of your dreams. You can get it all it done on the same day. On the other hand, if you do not have your finances sorted, choosing the best loan offer, approval, verification, etc. take time. It will be days before you actually get to sit on the wheels. Not to mention, you can always run into problems like
credit score, documentation, etc., which can further delay the process.
However, don’t just blindly ignore the dealer. Listen to what they have to offer. You never know your dealer might just offer you a loan at a better rate! Take in all the information you can from all sources, walk into your dealership as an informed buyer and act judiciously. Two-wheeler loans are easy to avail but a little wisdom can go a long way in easing your financials in the long run.
