Two-wheelers have always been one of the most popular modes of conveyance in India with a huge market demand. For some people, owning one is a necessity while for others, it is the freedom of mobility. Whatever the reason is, one thing that always remains the same is the cost associated with the purchase. Buying a two-wheeler requires a good amount of money, and there are two ways to fund it. You can either make an outright purchase or opt for a two-wheeler loan. Since both of these options come with their own set of advantages, it can be a little difficult for buyers to choose between the two.
A Closer Look
Full payment, as the name suggests, is a process in which you have to pay the complete cost of the vehicle in one go. You can choose a vehicle of your choice, make the payment, and bring it home. But if you choose to obtain a loan to finance your 2-wheeler purchase, you have to pay a small amount initially. After that, you can pay the remaining amount in monthly instalments. One important aspect of this option is the interest applicable on the vehicle loan. In simple words, this is a monetary charge paid to the lender for borrowing the money.
Take Your Pick!
It can be a real struggle to make a choice between a two-wheeler loan and a full payment. So, it is best to compare these two on the basis of the advantages they offer.
Full Payment
Some of the key advantages of full payment option are: -
• Simplified Process: Buying a two-wheeler with full payment is relatively simple and straightforward. All you need to do is pick a vehicle of your choice and make the payment. There are no complex formalities involved in the process.• More Flexibility: This option offers greater flexibility in several aspects. For example, if you want to sell the vehicle, there will be no complications. Since you have complete ownership from the very beginning, you can sell it whenever you want to without having to worry about loan repayments, loan foreclosures, etc.
Two Wheeler Loan
Here are the key advantages of going for two-wheeler financing: -
• Better Choice of Vehicles: If you obtain a loan for your vehicle purchase, it expands your choice of vehicles by reducing your budget constraints to some extent. You can pick a vehicle according to your loan repayment capacity, as you only have to pay a small amount initially.• Chance to Build Credit History: When you take out a loan and make timely payments, it actually helps build a credit score. Or, if you have a poor credit history, it can improve that as well for future purposes.
Final Verdict
There can be no single answer to this commonly asked question, as it depends entirely on the preferences of the buyer. Some people prefer making an outright full payment because of the simplicity and convenience it offers. On the other hand, those who don’t want to spend a large portion of their savings at once, choose to obtain a vehicle loan.
If you’re someone who thinks getting a loan for your vehicle is a better choice, always explore a few options to find the best deal in terms of interest rate and loan terms before finalizing. At present, there are several lending institutions that offer two-wheeler loans at attractive interest rates. For TVS vehicles, you can easily obtain a loan from TVS Finance. We have a wide range of loan schemes that you can browse and choose from as per your specific needs.
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