New vs used two-wheeler loan: Which is a better choice?

Whether you opt for a brand-new superbike or a second-hand, more economical bike, financing your two-wheeler can make a big difference to your purchase experience and long-term worth. It’s an option between a new two-wheeler loan and an old two-wheeler loan that considers interest rates, tenures, documentation, and down payments. With banks such as IDFC FIRST Bank providing hassle-free loans for both, here’s what to anticipate from each to make an informed decision.

New two-wheeler loans: What you get

There are different benefits of new bike loans that are ideal for first-time buyers, regular commuters, or two-wheeler enthusiasts who desire to own two-wheeler in the long run.

• You may get financing up to 95% of the on-road price of your new two-wheeler.

• The loan tenure can be extended up to 60 months with greater flexibility on EMIs.

• The interest rates are comparatively lower for new two-wheelers, especially if you buy from a listed dealer.

• New two-wheelers come with a manufacturer’s warranty, which means fewer maintenance issues in the initial years.

• Buyers are also eligible for other benefits such as customisations, free service, or extended warranty packages.

Best suited for: Buyers intending to retain the bike over a long time and want low maintenance, good loan offers, and security.

Used two-wheeler loans: What you get

Although the financing of a used bike is more inexpensive upfront, the loan is just marginally different from new bike loans.

• IDFC FIRST Bank provides financing up to 90% of the current appraised market value of the bike.

• The highest tenure of 60 months results in lower EMIs.

• Used bike loan interest rates will usually be higher than those offered for new bikes.

• Bike check-up and full documentation, like vehicle transfer papers, may be insisted upon for a loan sanction.

• Loans will usually get sanctioned for purchases from authenticated sources—informal ads or private sales may not be sanctioned or take more time for approval.

Best suited for: Value seekers like customers looking for a second bike, or short-term use buyers.

New vs used two-wheeler loan: Comparison

Why should you choose IDFC FIRST Bank?

Here are a few reasons that will make you feel that you should consider applying for a two-wheeler loan from IDFC FIRST Bank only.

• IDFC FIRST Bank provides a 100% paperless and digital application with instant approval in 2 minutes.

• You are entitled to competitive interest rates best suited to your credit profile for both new and used two-wheelers.

• The documentation is minimal, with basic KYC and vehicle papers only.

• The eligibility criteria is straightforward: You need to be an Indian resident with an age of 21 years or older. Individuals between 18 and 21 years of age must apply with a co-applicant.

Which type of loan should you choose?

If you want reliability, the latest technology, and the peace of mind that comes with it, a new two-wheeler loan is the way to go. However, if you only need cost savings or short-term use, a used two-wheeler loan might be a wiser financial choice—just be sure to properly check the vehicle and documents’ condition.

Whatever your choice is, IDFC FIRST Bank provides quick processing, easy repayment, and transparent terms so that your borrowing experience is hassle-free and rewarding.

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