Advantages of Bike Loan over Cash Payment

There are many of us who have a bike but find it difficult to buy a new one for some reason. There are a number of ways by which a person can get a new bike financed. One of the most common ways is through getting a bike loan.

If you are planning to take a bike loan in the near future? There are several options that you can choose from, like OTO Capital, a bank loan, or cash. The primary difference between a bike loan and cash is the security deposit you need to make while taking a bike loan. We will discuss the merits and demerits of this type of loan over the cash payment option.

Here’s Why the Young People Prefer to Buy a Bike with Cash

1. Cash has been around for a long time now, and people are still using it to make transactions. Just imagine what that tells us. Cash is probably the most preferred method of making payments over all other modes of payment.
2. Most people prefer to purchase a bike using cash is that they’re concerned about the lengthy documentation process. They’re often in a hurry and don’t have time to stand in long queues.
3. People tend to think that when buying a bike with cash, they will feel more responsible and will be less likely to default on installments.

Downsides of buying a bike using cash

The self-financing mode could be a viable option when it comes to buying a two-wheeler. But you need to avoid it in the case of expensive models. When you choose to self-finance the bike, you need to pay the entire cost. If you buy a sports bike, it will be an expensive deal that can exhaust your savings. This is especially true if you face an emergency and need to.

Bike Loan-Understand all the benefits before you lease one.

1. The benefits of a two-wheeler loan are plentiful. For starters, people no longer have to rely on the help of friends and relatives for purchasing their favorite bike. Via OTO Capital, you can easily get a bike loan @ 35% lower EMIs than a bank. OTO is like a one-stop-shop for all bike needs. You can use the app for bike servicing, bike maintenance & bike insurance. Download this app “OTO” from the play store.
2. Bike loans act as a financial relief, unlike other financial facilities like home loans, car loans, etc. The level of commitment and responsibilities are also quite lucrative.
3. When it comes to buying a two-wheeler, most individuals find themselves in a situation where they have to shell out a big chunk of their savings. But what if you don’t have enough of an emergency fund? Should you opt for a personal loan? Many a time, people take a loan to buy a new two-wheeler and start repaying the same from the next month onwards.

Conclusion- Purchasing a bike via a loan is the right choice or not?

Purchasing a bike via a loan is the right choice if you don’t have that much amount of savings. Many people don’t like this thing. This is because of their limited source of finances, and also, owing someone else money is not something they really want to go through. When you talk about bikes, no wonder we say it’s an important mode of transportation, and this would be even more crucial in times of need.