Notes Financing a vehicle Planning a vehicle includes a lot many things. You might have been thinking of buying your favorite vehicle but it needs a little bit of care and planning. Vehicles definitely bring plenty of comfort and convenience to you but if you do not plan purchasing one you might end up in pool of mess ups. The various requisites that you need to look into before planning a vehicle are: • The arrangement of finance: This is the first and foremost thing that you have got to comply with. Shortage of finance can lead you into a blunder later on. If you have cash and want to purchase the vehicle in one go, then there is absolutely no problem. If you want to buy the motorcycle on finance or loan then you must have a regular income to clear the monthly payments. • Having proper space: You should have at least a parking space for your vehicle. This is very much important otherwise you might have to face problems like useless wear and tear, repairing expenses etc. • Either having good driving skills or a good driver: If you do not have good driving skills, then it is better to have a good driver. Otherwise, you will again have problems like irregular maintenance. The latter two requisites can somehow be managed, but financing remains the most important. Banks are the best financers. These days they provide you loans at an interest rate of less than 12% per annum. You can arrange finance by going directly and talking to banks or even by employing a broker. There are some online sites of automobiles and banks; these will help you the best. They will compare different rates of interest and will also recommend you to different financial institutions. Advantage of purchasing vehicles through financing There are several advantages of buying a bike through loans and not full cash payment, here they are • It lets you buy a better motorcycle. You get the convenience of paying the amount in parts; therefore, you can afford to buy a better and costlier vehicle. • The motorcycle itself is secured against the loan; therefore, you do not need to worry about the failure of payment of the EMI, as only your bike will have to be returned back, everything else will remain secured. There are many companies who offer motorcycle finance for bad credit also if you don’t have good credit score. • You do not need to block your money. If you buy a vehicle by paying 100% cash then you will have to block all the money, but if you purchase a bike via a loan, then your money won't be blocked. You will also earn a lot on the time value of money concept. • A tax deduction is also possible if the vehicle has been purchased for business purposes. You can also mortgage your asset with the bank to take a loan. The contract terms are flexible, and various tenures of paying back are also available.