Smart Saving Tips to Bring Your Dream Electric Bike Home

Posted on: Mar 3, 2021 | 3 mins | Written by: HDFC ERGO Team

Smart Saving Tips to Bring Your Dream Electric Bike Home

Start saving to get that dream electric bike home!

Electric bikes are becoming increasingly popular in India due to their eco-friendly nature, lower running costs, and the joy of riding a modern two-wheeler. Top auto players have been regularly launching e-bikes that give stiff competition to petrol and diesel alternatives in terms of looks, performance, and price. The government, too, is promoting the use of electric vehicles in the country. However, for the consumer, the aspiration goes hand-in-hand with practicality. They want value for money and don’t want to overshoot their budget. So, purchasing an electric bike requires thoughtful financial planning. It doesn’t end here; maintaining your e-bike with bike insurance for the long term also requires proper budgeting.

Let’s walk you through the smart ways to save money to own your dream e-bike.

How Can You Save Money to Purchase an Electric Scooter?

If you are wondering how to save money to get a bike, the key lies in consistent planning. Buying an electric two-wheeler may feel like a huge expense, but simple saving habits make it achievable.

Steps to save money for an e-bike:

• Set a target budget:

Identify the model you want and find out its on-road price. This includes the costs of registration, road tax, and comprehensive or third party bike insurance.

• Open a dedicated savings account:

Keep funds for buying an e-bike separate to avoid accidental spending.

• Automate monthly savings:

Treat your savings like a mandatory bill by setting up an auto-transfer to your dedicated savings account every month.

• Cut down on non-essential spending:

Small adjustments like eating out less or cancelling unused subscriptions can add up to significant savings over time..

• Track your progress:

Use budgeting apps or a simple spreadsheet to monitor your savings and stay motivated.

Government subsidies and state incentives on e-bikes can also reduce the buying expense significantly. The GST rate on electric vehicles (2W and 4W) is set at 5%, the lowest, to support EV adoption. Various state-level incentives like vehicle registration fee waivers, road tax exemptions, direct subsidies, and often VAT or permit exemptions are also actively in place. Central schemes like FAME-II and PM E-DRIVE continue to provide subsidies for EVs.

Always check the latest schemes before finalising your purchase.

Is it Better to Save Money for the Bike or Should I Take a Loan?

Buying a bike often comes with the dilemma of whether to save up and pay up front or opt for a loan. The right choice depends on your financial stability, urgency of purchase, and long-term repayment capacity.

Let’s understand the benefits of paying from savings and using a loan to make an informed decision.

• Paying from savings:

Using your savings to buy an e-bike ensures you stay debt-free, with no extra money spent on interest. It also gives you peace of mind knowing the two-wheeler is fully yours from day one. This option works best if you can comfortably save the required amount within a year or two without straining your finances. Also, if your savings timeline aligns with your bike purchase, paying with savings is a better long-term choice.

• Opting for a loan:

Taking a loan is a practical choice if you need the bike urgently and cannot wait to save. It allows you to split the cost into manageable instalments, making the purchase more accessible. However, keep in mind that you will end up paying more overall because of interest charges, so it’s important to assess your repayment capacity before committing.

Hidden Costs Behind Buying and Owning a Bike

The sticker price is not the full story. Owning an electric bike comes with hidden or additional costs you should be aware of:

• Insurance:

Having at least third-party liability cover is mandatory in India. It covers injuries caused to others and damage to their property. You can opt for comprehensive bike insurance to protect your electric two-wheeler, along with ensuring coverage for third-party liabilities.

• Charging setup:

Home charging units or wiring upgrades may be required.

• Maintenance:

While e-bikes need less servicing than petrol or diesel models, battery health checks and tyre changes still add to costs.

• Battery replacement:

This is typically done after 3–5 years, and it can be a significant expense.

By factoring in these expenses, you won’t face financial surprises down the line.

Smart Tips for Buying an e-Bike

Here are some ways to make your dream e-bike purchase truly worth the money:

• Do thorough research:

Compare different models, their mileage range, battery life, and charging time to find the ideal one.

• Test ride:

Go for a test ride to check the riding comfort, balance, and ride feel.

• Look for subsidies:

After finalising a model, check for government incentives to reduce the buying expense.

• Check warranty terms:

Look for parts warranty, especially on the battery.

• Get insurance early:

Protect your vehicle with bike insurance from the moment you buy.

• Think long-term:

Don’t just consider upfront cost, calculate total ownership cost.

Can You Make Your Electric Scooter Faster?

Many riders wonder if they can enhance the speed of their e-bike. While there are aftermarket modifications to improve the speed, altering factory speed limits can affect performance, safety, and warranty. So, instead, you can do the following to achieve optimal e-bike performance:

• Keep your battery well-charged

• Regularly service the bike

• Use official accessories and updates recommended by the manufacturer.

Modifying speed settings beyond legal limits can attract penalties, so it is advisable to avoid tampering.

Conclusion

Owning an electric bike is not just about fulfilling a dream; it’s about making smart financial and safety decisions. From saving strategies and evaluating financing options to understanding hidden costs and securing comprehensive bike insurance, every step contributes to a smoother journey. By planning early and wisely, you can ride home on your dream e-bike with confidence.

FAQs

1. Is it good to invest in an e-bike?

Yes, electric bikes can be a practical choice for commuting. They reduce fuel costs, are eco-friendly, and require less maintenance. However, the decision depends on your travel needs and budget.

2. Which is a better option – Instalments or paying a lump sum cash?

Paying in cash from your savings is usually the more cost-effective option, as it helps you avoid interest charges and additional fees. However, instalments can be a practical choice if you need the bike immediately and prefer to spread the cost over time rather than wait until you’ve saved the full amount.

3. Are bike loans tax-free?

Currently, bike loans do not offer tax deductions. Unlike home loans or education loans, the interest paid on a two-wheeler loan is not tax-exempt.

Disclaimer: Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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