Bike Loan vs Bike on Lease: Which is the Right Choice?


Two-wheelers have become a necessary commodity for every household in India. Whether for the daily commute, traveling around the city, or going to the nearby shopping mall to buy groceries, everybody needs a bike or scooter to make their journey quick and comfortable.

However, not every person has the required funds to purchase a bike of his/her dreams. This is where a bike loan comes into the picture. A bike loan is a loan that enables borrowers to buy a two-wheeler of their choice. It helps in assuring your savings are safe, and your costs are covered. 

Besides a bike loan, people can also avail of the option of taking a bike on lease. You can rent a motorcycle or scooter by paying a refundable security deposit of the amount specified by the lender. Further, a processing fee, along with GST, is also collected. After that, the rent for the first month has to be paid in advance. At the end of the tenure, you have to return the bike to the concerned organization. 

Numerous bike rental apps, such as Bounce, have been launched in India to make leasing a bike more comfortable. Through these apps, you can rent a bike for a specified period and even buy it by paying additional money at the end of the tenure. 

Availing a bike loan and renting a bike are two most lucrative options to get a two-wheeler of your dreams. But, which approach is the better one? Well, this depends on several factors, which are explained below. 

Let’s find out. 

Which one is the Better option – Bike Loan or Bike on Lease?

1. How much you have to pay? 

First and foremost, you need to calculate the amount you have to spend in both situations. You need to consider some things, such as the on-road price of the two-wheeler, down payment, processing fee charged by the lender, loan or leasing tenure, and loan amount, to come to a viable solution. These prices may change from lender to lender. Hence, it is advisable to compare different lending and leasing organizations and figure this out before sealing the deal. Also, while choosing a bike loan, you can use a bike loan calculator to determine the exact amount. 


2. Flexibility and convenience 

Another pointer you need to consider is the flexibility of choosing either of these options. Leasing is a suitable option when you need a bike for a short period. For example, you may live in a particular city for just two years, and you don’t want the hassle of transporting your two-wheeler to another town. However, availing a bike loan is feasible if you require a bike immediately for your daily commute but don’t have the funds to pay the full amount upfront.

3. Kind of two-wheeler 

The next factor is the type of bike you want. Not every bike rental company will have a motorcycle or scooter that you need. While some may have old models, others might not have the bike in the color you want. If you have your heart set on a particular bike, then securing a bike loan can be the right choice. You can obtain a credit up to Rs. 5 lakhs, which cover a wide range of two-wheelers and help you purchase your dream bike. On the other hand, if you are someone who likes to explore different bikes, then a rental bike is the perfect option. 

"What is A Zero Down payment Two-Wheeler Loan?

Final Thoughts  

To sum it up, both bike loans and taking a bike on lease have pros and cons. To choose either of the two approaches, you need to understand the reason for getting a motorcycle, your budget, the period you need it, and so on. 

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