How To Save Money For A Bike: Crucial Tips

How To Save Money For A Bike: Crucial Tips

Purchasing a bike is frequently both a need and a fantasy for many. Two-wheelers are a practical form of transportation, particularly on India's congested roads. In addition, motorcycles are a cheap way to get around town because they are quick, fuel-efficient, and easy to park.

Some individuals purchase two-wheelers as an economical and practical way to commute, while others do it for the thrill and speed of the vehicle. For whatever reason, buying a bike costs a sizable sum of money.

Even though you can finance your ideal bike with a bike loan, a down payment is still required. Therefore, in order to keep your money in check when purchasing a bike, it is preferable to save in advance. Here are some practical suggestions to help you buy your ideal bike more quickly and effectively if you're wondering how to save money on a bike.

Essential Tips To Save Money For A Bike

Following are some strategies that can help you save money on bike purchases:

A. Selecting A Vehicle Should Come First

First of all, select the bike of your choice. The market offers e-bikes, motorbikes, scooters, and other vehicles. Your decision about the bike would help you focus on the price. Once you know the cost, you can calculate how much you need to save. Even if you're considering obtaining a vehicle loan, you may calculate the required down payment and adjust your savings accordingly.

B. A Brand-New Bike Or A Used One

Now, decide whether you are looking for a brand-new bike or a used one. A second-hand bike is less expensive than a brand-new one, and you may get a higher-end model for less money. Therefore, decide between a new and used motorcycle based on your needs and budget.

C. Make A Spending Plan

You are advised to buy a bike that fits your capacity. Even when obtaining a two-wheeler loan, affordability is crucial. If the bike is within your budget, nothing will be at risk to your money. So, before you go out to buy a bike, set a budget. Determine the highest price you are willing to spend without going over budget.

D. Boost Your Credit Score

If you want to finance a bike with a two-wheeler loan, you must have a high credit score. Lenders use the score to assess your creditworthiness and determine your ability to repay debts. With a 700+ credit score, you get a loan quickly and at a fair interest rate. So, before filling out a loan application, you must improve your credit score.

Here are some suggestions to get better:

  • Make on-time credit card and loan payments.

  • Make on-time utility bill payments.

  • Never apply for various loans at a time.

  • Restrict how much credit you can utilize.

E. Select A Financial Instrument

It takes more than just setting aside money to save for a bike. That money needs to be invested in a way that will increase the value of your savings. These returns aid in the growth of your funds, resulting in the ideal corpus for a bike purchase. Hence, in order to save money wisely, invest it in something that will grow until you need it to purchase a bike.

F. Minimize Wasteful Spending

Cutting back on spending is the easiest way to start saving. Saving is only possible if you can reduce your overall spending. You must first identify where your money is going in order to reduce wasteful spending. Therefore, it is important to keep records of all your costs.

Make a note of every rupee you spend, even if it is just one. Examine your costs once a month has passed. Look for opportunities to cut costs. You will have enough money saved up once you start cutting back on your expenses.

G. Save In Cash

To save money, buy a bike in Cash. You will have more negotiating power if you pay in cash for the bike. Thus, begin allocating a portion of your monthly salary for savings. Place it in a bank locker, under your bed, or in an envelope.

Make sure you save consistently and only spend the money you save for the purchase of your bike. In addition to saving on a regular basis, you can accelerate your goal by putting any bonuses or gift money towards your bicycle.

What Determines The Savings Needed For A Bike? 

If you're wondering how much money you should save for a bike, there are a number of elements that will influence your choice. These elements consist of the following:

  • The Bike’s Cost

The primary predicate of savings is the cost of your two-wheeler. The higher the expense, the more you will need to save.

  • Time To Buy

The amount of time you have left before purchasing a bike is the next consideration. The amount of savings needed decreases with the length of time until purchase. For example, you will need to increase your monthly savings if you plan to purchase a bike in the near future. However, if you plan to buy a bike within the next few years, you have time on your hands. In this instance, you can save less money to build the corpus you require.

  • Profits From Investments

The quantity of savings you should make is also significantly influenced by the returns on your investments. If the returns were higher, the necessary savings would be less, and vice versa.

How To Save Money On Bike Insurance?

Even though you are aware of how to save money for a bike purchase, you still need to remember that a bike insurance policy is necessary. Every bike in India is required by the Insurance Regulatory and Development Authority (IRDA) to have a current insurance policy before it may be driven. Therefore, you should budget for both the cost of the insurance policy and the price of the bike.

Nevertheless, bike insurance policies are reasonably priced. Additionally, there are other techniques to reduce the cost of a bike insurance policy's premium. 

Have A Spotless Driving History

Having no accidents or damage for which you have filed a claim under your bike insurance policy indicates that you have a spotless driving record. The insurance company gives preferred premium rates when the frequency of claims declines. To lower insurance premiums and assist you in reducing your premium out-of-pocket, insurance companies provide a "No Claim" incentive for each year that you file without filing a claim.

Your driving record can directly affect the cost. Suppose you need a better driving record and a history of filing claims on your bike insurance policy. In that case, the insurance company may raise the renewal premium to make up for the repeated payments it has to make.

An increased renewal premium results in a higher premium for bike insurance. Your driving history, therefore, has a direct impact on the cost of your bike insurance and needs to be kept up to date.

Examine Alternatives For Additional Covers

Add-ons are additional coverage features that enable you to expand the policy's coverage. Nevertheless, the extra costs associated with each add-on raise the price.

Even though add-ons offer comprehensive protection, you should reevaluate your options. Select add-ons that meet your coverage requirements and are appropriate. Eliminate those that are not needed in order to avoid incurring additional costs.

For example, the engine protection add-on makes sense if you reside in a flood-prone area. However, it would only be necessary and avoidable if your area flooded.

Ask For Any Available Discounts

Companies that provide bike insurance provide appealing discounts that help you pay less for your premium. Typical savings consist of the following:

  • Save money by adding safety features to your bike.

  • Savings when selecting an optional deductible.

  • Savings when purchasing a long-term policy.

  • Internet savings.

  • Discount for membership in an official vehicle organization, etc.

CONCLUSION

To ensure you have the money to buy the bike, make your purchase in advance. To make returns and build the required corpus, you should know how much to save and invest in profitable ventures. You can also get a bike loan; however, you should consider the advantages and disadvantages of doing so before deciding.

Author Bio

Ashutosh Patidar is an automobile enthusiast. By profession, he is an SEO expert and a content writer with years of experience at Bikechuno. He loves creating informative content in various formats. In his articles and blogs, he always tries to provide comprehensive data about the upcoming, new launches, and electric bikes in India.

Previous Post Next Post