Pros And Cons Of Buying 2-wheelers In The Year-end Sales
Featured Stories by Team Drivio | 19th Dec 23
Honda, Hero, Bajaj and even Harley-Davidson is giving good year-end deals
- You can get bikes right before their price is hiked in year-end deals
- Some brands offer excellent exchange deals this time of the year
- That said, you do miss out on the upcoming, newer bikes and scooters
The debate over whether the year-end sale is the optimal time to purchase a bike is a topic that often divides opinions among enthusiasts and practical buyers. This article explores the pros and cons of making a two-wheeler purchase during this period, shedding light on key considerations that potential buyers should keep in mind.
Pros of Buying a Bike During the Year-End Sale
1.) You get some great deals towards the end of the year
Year-end sales bring about lucrative discounts as automakers rush to clear their inventories. This is driven by the need to create space for newer, more advanced models that are typically launched at the beginning of the next year. Customers are enticed with a variety of offers, including cash discounts, extended warranties, and complimentary accessories. For those who prioritize a good deal over having the latest model, the end of the year presents an ideal opportunity to make a cost-effective purchase.
2.) You can get them before the price hike!
The majority of automobile companies implement price hikes for existing models and introduce new ones at the start of the year. This is often attributed to inflation and rising input costs in the manufacturing process. By encouraging purchases at the end of the year, manufacturers create a win-win situation – they clear their inventories while customers save on their purchases, avoiding the extra costs associated with the anticipated price hike in the coming year.
3.)You can get much better exchange deals
With increasing purchasing power, many individuals seek to change their vehicles every five years. However, finding a buyer willing to pay a fair price for their current vehicle can be challenging. Auto manufacturers address this issue by introducing exchange schemes, eliminating the need for owners to go through the hassle of selling their vehicles. The value of the old vehicle is directly adjusted against the new purchase, making the end-of-year exchange offer an attractive proposition.
It's important to note that the value of a vehicle depreciates by approximately 10-12% per year. For instance, if you purchased a vehicle in 2020 and are looking to exchange it during the year-end offer in 2022, the depreciation is calculated until 2022. Delaying the exchange to the 1st of January 2023 would result in an additional 10-12% depreciation, considering the vehicle's age is now considered one year older.
Cons of Buying a Bike During the Year-End Sale
1.) It will impact your resale value
Despite the potential cost savings, purchasing a bike in December instead of January may have implications for its resale value. While the vehicle is only a month older, the change in the year during this period can significantly impact its perceived value. For individuals who frequently change vehicles, this consideration becomes crucial, as the resale value may be affected by the perceived age of the bike.
2.) You end up missing out on some of the newer upcoming models
Automobile manufacturers regularly update their models to stay competitive and aligned with industry trends. These updates can range from minor cosmetic changes to significant technological advancements. Opting for a bike during the year-end sale may mean missing out on these updates, potentially making the vehicle less appealing to future buyers who prioritize the latest design and features.
So, Is Buying a Bike at the Year-End Sale a Good Idea?
In conclusion, the decision to purchase a bike at the end of the year comes with a set of advantages and disadvantages. While the potential for cost savings through discounts and exchange offers is enticing, buyers must carefully weigh these benefits against potential downsides such as the impact on resale value and missing out on the latest models. Ultimately, the suitability of buying a bike during the year-end sale depends on individual preferences and priorities.Some FAQs
Optimal Time to Buy a Vehicle?
If your primary goal is to save money, the optimal time to buy a new vehicle is typically between October and December. During this period, dealerships are keen on clearing their inventories and offer substantial discounts to attract buyers looking for cost-effective purchases.
Offers To Expect During End-of-Year Sales
Manufacturers employ various strategies to entice buyers during the year-end sales. Expect discounts ranging from a few thousand to lakhs, depending on the make and model. Higher discounts are often applied to slower-selling models as manufacturers aim to make room for newer and improved versions. Additionally, complimentary accessories and extended warranty periods may sweeten the deal.
Beyond discounts, December may also bring potential savings on insurance. Auto manufacturers often have partnerships with insurance companies, and both entities strive to meet year-end targets. As a result, competitive insurance rates may be offered in December compared to the rates at the beginning of the following year.