From the picturesque Patriata trail to the scenic route from Barrian to Kohala Bala, there are endless destinations to explore on a bike. While one can always rent a bike for trips, the thrill of riding one’s own motorcycle is unmatched. However, buying a motorcycle, especially with a heavy down payment, can get expensive. Fortunately, today one can make arrangements to save money on their motorcycle and avoid making a down payment.

1. Look for zero-down-payment loans
Getting a loan is a common way to finance a vehicle purchase. While many financial institutions may offer auto loans with down payment requirements, it is possible to find lenders that can finance the entire purchase without requiring one to make a down payment first.

These financial institutions are likely to have branches in most major cities, but one should do their research and find local branches while shortlisting lenders offering low-rate bike loans. However, one should also consider other factors, such as tenure flexibility, brands covered, and financial plans, while making a decision. Also, one should assess their financing needs before opting for a loan. If one does not know the exact amount of money they need to finance the motorcycle purchase, finding the right lenders and setting the loan amount will be difficult. One shouldn’t take a loan that exceeds or falls short of the total cost (including additional costs) of the motorcycle.

So, having a clear budget in mind can help one decide the ideal principal amount of the zero-down-payment bike loan.

2. Choose a less expensive motorcycle
To avoid making a hefty down payment, one of the best strategies is choosing a budget-friendly motorcycle. While the bike must fulfill all requirements, it doesn’t need to come with additional features. Such features are not only unnecessary, they add to the overall cost of the bike. Another way to save money on a bike is to go for a used one that is still in good condition. Used bikes cost much less than first-hand ones, so one ends up spending less even if they have to make a down payment.

3. Use a credit card
The best thing about credit cards is the flexibility to pay the amount at a later date. Another benefit is dealerships may accept credit cards as the mode of down payment. Credit cards also come with flexible EMI options, buying one time to pay for the motorcycle. While there’s usually an additional fee involved when it comes to credit card payments, it is still better than having to pay a large amount as a down payment when buying a motorbike.

4. Check and boost credit score
The higher the credit score, the better the chances of getting approved for a zero-down-payment loan. Paying credit card bills on time, having a low credit utilization score, and not getting rid of old credit cards can go a long way in maintaining a good credit report. But in some cases, one might be unable to achieve the required credit score; for example, with a credit score of 550, securing a zero-down-payment motorcycle loan could be tricky. In such cases, it’s best to look for institutions that have lenient credit score requirements for loans. One may also be able to get a loan by getting a co-signer to assure the lender of the ability to repay the loan. Alternatively, if one can wait for a while, they should try to boost their credit score and then apply for a loan.

5. Negotiate higher monthly loan payments
To finance a motorcycle purchase without a down payment, one may have to opt for higher equated monthly installments (EMI) to repay the amount. By negotiating a higher EMI, one may be able to get a loan to finance the purchase without making a down payment. One should also note that zero-down-payment loans come with higher interest rates. So, one should account for the additional charges while seeking such a loan. One may be able to find better options by comparing the interest rates on specific loan amounts offered by different financial institutions in the country and taking a call on which one is the most cost-effective.

6. Compare financing options
If seeking a loan or financing options, different institutions may set different criteria to qualify for financing. So, the best bet is to check the eligibility criteria set by various lenders. Comparing the criteria beforehand makes choosing the right lender and the loan approval process considerably quicker and more efficient. Some of the criteria to check include minimum and maximum age, work experience, credit score requirements, citizenship, and (if applicable) conditions for self-employed persons. Also, if seeking a loan, one should check the processing charges, as that increases the overall loan burden. Comparing processing fees can help one opt for a loan and a lender with the lowest processing charges. At the same time, just to save a few rupees, one shouldn’t compromise on lender ratings, brands covered, and other such factors.