Many other decisions accompany your decision to buy a bike. Which company and model do you want? And whether you would like it brand new or, a used one is good enough for you? The model and company can be decided on your type of usage and preference. But the latter becomes a tough call to take.
There are pros and cons to both types of purchases: first hand & second hand. This post presents them to you in detail to help you decide.
Pros of Buying a Used Bike
Let us look at the benefits of buying a used bike.
Value for Money: A used bike will do the same job as a new bike. But you can get hold of it at a much lesser price. Moreover, you can also take a second-hand bike on EMI to make it more affordable.
Seller Choice: You can choose from whom you want to buy the second-hand bike. You can get it directly from a friend or acquaintance, someone whom you can trust. Or you can get it through a dealer who can fix any issues with the bike.
Lower Insurance Premium: The used vehicle’s value is less than a new one. Hence the insurance premium you pay for a used bike is also less than what you pay for a new bike.
Cons of Buying a Used Bike
Following are the cons you must consider if you buy a bike that is not first-hand.
Valuation Efforts: You need to put some effort into judging the bike’s correct value. You can consider online sources and physical showrooms to gauge the right price of a used bike.
Unknown Vehicle History: You may never know the exact vehicle history. You need to go by the seller’s words only. However, you can take the bike to the mechanic to confirm the specifications.
Maintenance & Repair Cost: A used bike needs more maintenance and repair because of the wear and tear it’s been through. Thus, much of your time and money may be spent on the maintenance and repair of the used bike.
Pros of Buying a New Bike
A new bike presents the following advantages!
No History: You don’t need to stress about how the vehicle was maintained and what wear and tear it went through. You will write the history of this bike!
Warranty: A new bike means a new warranty. So you get a bike whose maintenance is free for years. You also don’t need to worry about any unexpected malfunction in the bike.
Latest Technology: Considering the dynamic automobile sector, you will probably get a second-hand vehicle with outdated technology. On the contrary, you get the newest model with all the advanced features when you buy a brand-new bike.
More Mileage: The number of mileage you get with any new vehicle is obviously more than an old one. The same case is with a bike. You can ride a bike for more miles if it’s new.
Better Performance: A new bike is without any wear and tear. Therefore it is expected to perform better It’s less likely that it will leave you stranded on the road because of a breakdown.
Cons of Buying a New Bike
There are certain disadvantages also of buying a new bike. Here they are!
Expensive: You need to pay a hefty price when you buy a bike first-hand.
Depreciation: Your new bike may get old and depreciate before you think because of the quick technological advancements.
Higher Insurance Premium: You pay a higher insurance premium when you buy a new bike than an old one.
All in all, affordability is the most significant factor when you want to buy a bike. You get a considerable benefit cost-wise when you buy a used bike. So if you don’t have excess money to buy a new bike, it is advisable to buy a second-hand bike if possible on EMI. Ensure that the bike is in good condition to avoid repair expenses.
Author Bio:
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at [email protected].