Two-wheelers are one of the most common means of transportation for most Indians. Whether you live in a metro city or a small town, the sight of roads with seemingly endless two-wheelers will be pretty common. If you, too, are planning to get a bike, you have a lot of research to do. Besides deciding what model, brand, and specifications you want in a two-wheeler, you will also have to decide if you want to purchase an entirely new bike or a Second-hand bike.
Since Second-hand bikes are pretty affordable compared to a new bike, people with budget constraints get inclined towards it. But is it a wise purchase decision? It can only be ascertained after analyzing the pros and cons of buying a Second-hand bike and a new bike. To make your work easier, we’ve listed down the pros and cons for both cases for your quick reference.
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Pros and Cons of Investing in New Bike
Purchasing a new bike requires a lot of investment from your end. So before you finalize buying a new two-wheeler, it will be wise to understand its pros and cons.
Pros of Purchasing a New Bike
Buying a new two-wheeler has the following pros:
- Top Performance
It may sound cliché, but a brand new bike will always be way ahead in terms of performance compared to a used bike. A brand new two-wheeler means a smooth riding experience, minimal chances of vehicle breakdown, no unpleasant noises, etc.
- Latest Features
Depending on the type of bike or two-wheeler you purchase, you’ll get a two-wheeler equipped with the latest features. If you cannot compromise with this point, you should consider investing in a new bike instead of buying a Second-hand two-wheeler. You can also take a two-wheeler loan to fund the purchase.
A new two-wheeler comes with a warranty that covers the vehicle owner against any damage or error for a specific duration. It saves you from any additional expenses that you would have incurred had a Second-hand bike broken down.
- Flawless Aesthetics
A new bike has a shine and finish like no other. It is what makes it easier to separate a new bike from a used one. No scratches, spotless appearance, and a smooth finish are some of the highlights of a brand new bike.
- No Stress Regarding Vehicle History
One of the most impressive, best things about buying a new bike is that you will not have to worry about the bike’s history. When purchasing a used bike, there remain doubts if you’re buying the bike from the rightful owner, if the bike had accidents in the past and various other concerns. Luckily, you don’t have to think and stress about any of these concerns while purchasing a brand new bike.
Cons of Purchasing a New Bike
Buying a new two-wheeler doesn’t come with benefits alone. If you’ve decided to get a new bike, you should be comfortable with the following cons:
- Even the most affordable model costs more than a second-hand bike
A new bike will always cost more than a Second-hand bike, so be ready to spend a good amount. If you want to get a sports bike, a good model will cost you a few lakhs, while the same category bike will cost a lot less if purchased as a Second-hand bike.
- Additional Expenses
While purchasing a new bike, some people don’t include the additional expenses they will have to make following the bike’s purchase. Maintenance, petrol, repairs, and insurance are some expenses that you will have to make space for. However, out of all the expenses, insurance is the most important one.
If you want to take your bike on the roads, you will first have to secure it with good two-wheeler insurance. You can use a 2 wheeler insurance premium calculator to get an idea of the premium you’ll have to pay on a recurring basis.
- Reduction in invoice value due to depreciation
Within five years of purchase, a new bike may depreciate up to 50% of its value, after which the depreciation increases at the rate of 2.5% every year. So if you’re purchasing a new bike, it will lose much of its value within the first five years, affecting its IDV.
Pros and Cons of Buying a Second-hand Bike
People with a lower budget tend to incline towards purchasing a Second-hand bike. If you, too, are willing to buy a second-hand bike, make sure you’re aware of its pros and cons.
Pros of Purchasing a Second-hand Bike
A Second-hand bike comes with the following benefits:
- Lower Cost
A used bike will always cost less than a brand new bike. It can be really good for people who want to purchase a high-end bike, but the expensive price tag prevents them from buying it right from the showroom. As new bikes depreciate faster, their ex-showroom price drops with every passing year. So even if you cannot buy a sports bike or any other high-end bike at its original cost, buying it as a second-hand vehicle can be a cost-effective option.
- Lower Insurance Value
As mentioned earlier in this article, new bikes tend to depreciate fast in the first five years, bringing down their IDV. So whenever you buy a second-hand bike with a lower IDV, you will have to pay lower premiums.
Cons of Purchasing a Second-hand Bike
While getting a second-hand bike, you should be aware of the following cons:
- High Maintenance
A second-hand bike doesn’t come with an expensive price tag, but its maintenance costs can sometimes disrupt your budget. Used bikes have higher chances of breakdown, and their repair and maintenance can create a dent in your pocket.
- No Vehicle History
It can be pretty difficult to get the exact vehicle history, as the seller may not disclose full bike details to the buyer. It can create a problem in the future, but the chances of such events remain thin.
- May Have Minor Scratches or Issues
You cannot get a spotless second-hand bike, but you can certainly get it fixed by paying a professional. Since scratches and minor issues are common in old bikes, you should take a mechanic along to better understand the bike’s working condition.
Whether you purchase a new bike or a second-hand bike, both will have positives and negatives attached to them. So the decision ultimately boils down to your personal preferences. Who wants to compromise on their dream? If your finances are not enough for the bike you wish to purchase, you can apply for a loan.
To get an estimate of the EMI payments you’ll have to pay, use an online bike EMI calculator to plan your budget. Try different loan tenures to come to an amount that is suitable to you. Lesser the period of loan, lesser is the interest you will end up paying.
Now that you’re aware of the pros and cons of buying a second-hand and new bike, you can make an informed decision that is best for you.
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