Bikes have become more of a style statement for millennials as they buy a bike for its looks, speed, and brand. Newer and more evolved bikes have also become popular in the market to meet the new-age demand of millennials. However, millennials should be careful when buying their bikes. Though owning a trendy bike might be their dream, they should plan for the bike carefully to save their hard-earned money.
Here are five financial planning tips for millennials when it comes to spending on bikes –
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#1 Buy a bike which suits your needs
Your dream can be as big as the sky itself but your finances might not be. That is why, when choosing a bike, be real and practical. Choose a bike which fits your budget. Don’t go overboard in choosing the bike otherwise, your finances would suffer a setback from which it would take you a long time to recover.
#2 Buy a bike on installments
Expensive cruiser bikes and other high-end models should not be paid for from your savings. Rather than suffering a financial drain one time, it is always better to buy a bike on EMIs. Nowadays, financial companies offer you the benefit of buying bikes on installments where you make payment for the bike over a couple of years. This method helps you own a good model and is also light on your pockets. You can also avail a bike loan to finance the bike and own a bike without putting a strain on your finances.
#3 Go for annual maintenance contracts when buying a new bike
When you buy a new bike, dealers often give you the option of choosing an annual maintenance contract which would ensure regular servicing of the bike in a year. These annual maintenance contracts are cheaper than going for independent servicing of the bike. They save money and also ensure regular servicing of the bike to increase its longevity and also to help maintain its performance.
#4 Hunt for offers
In order to attract more customers, bike manufacturers, as well as dealers, give attractive offers on bikes. You can get free annual maintenance contracts, discount in price, free fuel, etc. with the purchase of your new bike. Hunt for these offers which would help in saving on the cost that you have to pay for your new bike.
#5 Go for long-term online two wheeler insurance
The last point is also one of the most important points for you to consider. When you buy a new bike, you also need to buy two-wheeler insurance online as per the provisions of the Motor Vehicles Act, 1988. So, when buying online two wheeler insurance you should choose a long-term insurance plan. Long-term policies have lower premiums as the third party premium remains constant over the tenure. So, long-term online two wheeler insurance policies are the best bet.
Moreover, before buying two-wheeler insurance online, don’t forget to compare. There are about two dozen insurance companies which offer two-wheeler insurance policies. When you compare two wheeler insurance plans, you can find the plan which has the lowest premium rate without compromising on the coverage amount and benefits. So, always compare two-wheeler insurance and then buy the best policy.
The Bottom Line
For all those millennials who are planning to buy a bike for themselves, these financial tips help in lowering the expenses incurred on having your own bike. Remember these tips and use them when you set out to buy that trendy motorbike for yourself. Don’t forget about the insurance aspect too. Bike insurance is compulsory on your two-wheeler and so if you keep the last tip in mind you can even save on the bike insurance cost. So, be a smart shopper and save money on your bike-related expenses using these tips.