Are you thinking of purchasing a two-wheeler on finance? Then there are two things you need to look for, the two-wheeler you want to buy and a good two-wheeler finance company. While choosing the bike or scooter is a personal choice dictated by your income and interest, you need to conduct thorough research when searching for finance options.
Here were are discussing the simple steps you need to follow to get two-wheeler finance.
Table of Contents
Talk to agents of different finance companies
When you go to the showroom and decide to buy a two-wheeler, the sales agents would direct you to several agents from different financing institutions. We recommend that never take a haste decision regarding your two-wheeler financer after meeting the first agent. Instead, take time out to gather information well-informed if you wish to make the most out of the deal.
So, meet each of the agents present in the showroom, take time to understand each of their two-wheeler and auto loan financing schemes, terms and conditions. Keep a note of every point that appears essential to you.
Talk to people you know
When you want two-wheeler finance that is hassle-free and offers low interest, referring to the showroom’s financing agents is not enough. Gather information from online searches and other resources such as people you know who have purchased two-wheelers recently.
So, talk to your close associates and inquire about the two-wheeler financing institutions they have chosen for their vehicles. Try to understand the terms and conditions of their financing schemes, interest rates, eligibility criteria, and all other details related to their auto loan schemes.
You have to note down all the vital information again from your discussions with these people so that you can refer back when needed.
Streamline and enlist preferences
At this stage, you are supposed to streamline your search and focus on a few chosen financers who appear most favourable to you.
You have to emphasize on specific factors for streamlining your search. For instance, you have to consider the reputation of the chosen institution, your eligibility criteria, terms and conditions, repaying tenure and options for foreclosing the loan.
As you streamline, do not forget to collect and note down the contact information of each of the two-wheeler finance institutions so that you can contact them back.
Contact and communicate
Now that you have gathered the information, it is time to analyse the various factors against your requirements. What is the interest rate? What is the loan amount you are eligible for? What is the EMI you will have to pay month-on-month? Make sure you are comfortable with the EMI. Take note of your fixed expenses vs income before deciding the amount. Also, calculate for emergencies and other expenses before committing to a loan.
When you talk to each of the lending institutions, you have to gauge how accommodative and aware your agents sound. If the person sounds too cooperative or seems not to be thorough with the financing scheme he is offering, remove them from your shortlist.
The reason is, the ignorance of the agent will keep you in the dark. You might never know many hidden clauses and terms that would add to your trouble later on.
If you think that the process is challenging, it is not at all so. Ask the agent to explain the terms and conditions of the financing scheme clearly. Be prompt to ask whenever you have any doubt or query. Do not hesitate to ask the questions repeatedly if you do not get the right answers.
Emphasize on repute
While streamlining, you will come across different auto financing institutions whom you have never come across earlier. The financing schemes, terms and conditions and eligibility criteria of these two-wheeler financing institutions might appear very simple and sorted out too. Eventually, you might get convinced that you have found the right financer for your two-wheeler.
But hold on. Always prioritize the financing company’s reputation and credibility, even if their auto financing schemes sound less attractive.
When your two wheeler finance company is credible, you will gain in the long run. Firstly, the process of repayment of the loaned amount will go hassle-free. Secondly, you will never end up meeting unprecedented situations because your agent did not tell you about any hidden term or condition.