Unlike the financial year that starts from April through March, vehicle manufacturers adopt January to December as their manufacturing cycle. Thus, for each calendar year, manufacturers introduce either a new model or reset their production cycle.
Now, there are two sets of people, one, who would either be in favor of buying a new vehicle towards the end of the year and others who oppose this idea. Some encourage buying towards the year-end because manufacturers, generally, offer hefty concessions to clear out their existing stock of vehicles. On the other hand, some don’t encourage the same because they believe in buying a new model in the coming year.
While you tussle with the timing of your two-wheeler purchase, do not forget to include a bike insurance
plan in your list of things to buy.
Advantages of buying a two-wheeler during the year-end sale
Whichever side of the new-year-purchase debate you are on, it is important to know how you can make the most of it. Here are some of the benefits:
You get great deals during the year-end sale
The primary reason for anyone to buy a bike towards the year’s end is the lucrative concessions offered by the automakers. To them, this helps clear out the pending inventory and makes way for the fresh production batch. Customers, generally, prefer the updated model over the outgoing one, and thus, manufacturers offer deep markdowns on the price. Not all concessions are monetary; some may be in the form of extended warranty or even free accessories. If you are someone looking to grab a great deal without a preference for the latest model of the vehicle, then the year-end sale is the right time for you. *
Buying before the price hikes
Another benefit of buying a two-wheeler during the year-end sale is to get ahead of the price hike. Generally, a price revision is what happens each year, to tackle inflation and the increase in input costs. So, if you want to save a few thousand rupees, the year-end sale is the best time. It aids the manufacturers to clear their inventory, as well as helps to save a substantial amount during your purchase. *
Avail better exchange deals
Most vehicle buyers account for the resale value of the vehicle when buying one. But, it can often get difficult to find a suitable buyer willing to pay the right price. Thus, dealerships offer exchange facilities where you need not worry about selling your existing bike. Instead, the price of the new vehicle is adjusted for its appropriate resale value by the dealer.
These vehicle dealers calculate the depreciation on your vehicle based on the year of manufacture. Hence, if you are selling a vehicle manufactured in 2020, in the year 2022, then depreciation for those two years will be accounted for. However, if you exchange your vehicle in 2023, the same would be further depreciated by another year, thereby reducing the value by three years of depreciation. *
Concerns surrounding the purchase of a two-wheeler during the year-end sale
While the above pointers show how you can make the most when buying a vehicle towards the year-end sale, there are certain concerns to keep in mind.
Impacting the resale value
As discussed above, the resale value of your bike is determined considering the manufacture year. So, a vehicle purchased in December 2022 instead of January 2023 would take the hit of another year of depreciation despite being purchased only a month prior. If you are someone who replaces your vehicle periodically, this could impact the resale value of your bike. Thus, you must keep this in mind when buying a two-wheeler during the year-end sale. *
You miss out on newer and updated models
When you choose to buy a new vehicle during the year-end sale, you are giving up the updated and refreshed model that the manufacturer is going to launch. A newer model is not always introduced due to a new manufacturing year. At times, it also brings with it a design refresh or even a technical update. Some of these changes may be critical in enhancing the safety and performance of your vehicle. In that case, you should reconsider the timing of your new-year purchase. *
While you keep in mind the above factors, we hope you have also made note of the insurance reminder at the beginning. Third-party insurance purchase is a legal requirement. And it is also important to remember that third party bike insurance
may not always be sufficient. Comprehensive plans must be purchased basis your requirement. For comprehensive policies, an insurance claim
compensates for not just third-party losses, but also the repairs required to your bike, along with injuries to the rider. *
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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