Recently I walked into a showroom to buy the motorcycle of my dreams, the Harley Davidson Street. Purchasing this exotic superbike had been on my mind for a long time. However, with a price tag of INR 5.75 lakh, making an outright payment was not possible. However, this did not deter me from buying my dream bike. By making a down payment and repaying the outstanding loan through Equated Monthly Installments (EMIs), I successfully purchased the bike without any financial constraints.
You may give up on buying your dream bike due to the exorbitant price tag. However, there are many ways through which you may purchase a bike without burning a hole in your pocket. Here are three ways to obtain the necessary funds to purchase a bike.
One financing option is to utilize your savings, which you have accumulated over the years. If your savings cover the total cost of the bike, you may use the entire amount to make the purchase. However, it is important to understand that utilizing all your savings is not a financially sound decision. You may find it difficult to arrange funds in case of an emergency.
2. Credit card
In the case of inadequate funds, you may use your credit card to make the purchase. However, this is advisable only if you wish to purchase a bike in the lower price range. This is because credit cards have a certain borrowing limit above which you cannot borrow. Additionally, in the case of missed payments, you may face financial constraints as the interest charged on non-payments is high.
3. Two-wheeler loans
You may avail of a two-wheeler loan to purchase your dream bike. Financiers these days offer attractive terms, like extended loan tenure, minimal documentation, instant loan approval, lower down payment, higher loan amount, and competitive two-wheeler loan interest rates. Moreover, you may repay the loan in regular monthly installments. Since this financing option is budget-friendly, it is considered to be the most feasible way to ride home the bike of your dreams.
Out of the three aforementioned financing options, buying a bike on EMI is the most recommended and popular mode of financing. It allows you to repay your installments based on your cash flow, thereby reducing strain on your finances. Financiers also offer benefits like affordable EMIs, simplified documentation process, and attractive bike loan interest rates. Through such loans, you may own your dream bike without facing any difficulties.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018