/ Tips & Advice

Should you buy a motorcycle on zero-down payment?

These offers may seem attractive, however, don’t let your guard down.

EJ Punsalang EJ Punsalang on Mar 09, 2022
Should you buy a motorcycle on zero-down payment?

Nowadays, buying a brand new motorcycle is easier than ever. This is especially true if you are in the market for an entry-level commuter or a scooter for you to use on a daily basis. Low down payment schemes, or even zero-down payment schemes, make it extremely easy for folks to get their hands on a shiny mew two wheeler. That being said, there are indeed a few things to consider when it comes to availing of these attractive financing schemes.

Remember, zero-down payment doesn’t necessarily mean that you will be saving money in the long run. It just means that you are spreading the upfront cost of the motorcycle over a longer period of time. In fact, depending on the interest rate, you could be paying close to twice the cash value of the motorcycle you are looking at. That being said, here are a few things to consider if you really want to get that new motorcycle on zero-down payment.

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Costs to consider when buying a motorcycle

Make sure you're financially stable

Brand new motorcycle

Naturally, the first order of business would be to make sure that you are financially stable. What does this mean? Well, it doesn’t necessarily mean that you have tons of savings, or are liquid enough to purchase the motorcycle outright. This would negate the need for availing of a zero-down payment scheme. By financially stable, we are referring to a steady stream of income, be it from a regular job, or personal business.

If you avail of a zero-down payment scheme without any of these financial securities, there is a greater likelihood that you will, at one point, find yourself unable to make the monthly payments. Of course, being unable to make the monthly payments will result in the repossession of your motorcycle—more on that in a bit. 

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How to buy a used motorcycle in the Philippines

Plan ahead

We are by no means financial advisors, however, it goes without saying that you will need to plan your finances ahead especially if you want to avail of a zero-down payment scheme on a new motorcycle. Just because you won’t be shelling out a large amount of cash upfront, doesn’t mean that you won’t be paying for the motorcycle, as well as for the convenience of having the payment stretched for a longer period of time. Depending on the value of the motorcycle, you will be paying several thousands of pesos on a monthly basis, so be sure to plan your finances accordingly.

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What if you can’t pay anymore?

Brand new motorcycle

Now, what happens if you just can’t pay anymore? Sometimes fortuitous events occur and we find ourselves strapped for cash for whatever reason. Well, my friend, at this point you could be out of luck. You will soon be contacted by your dealership or by the bank who granted you the loan, and they will arrange for the bike to be repossessed. When a motorcycle is repossessed, either the bank or the dealership takes ownership of the motorcycle, while you don’t even get a single peso back.

Of course, we would like to avoid this at all costs. In reality, it happens way too often because of poor financial planning, and sometimes, just sheer bad luck. Remember, zero-down payment schemes aren’t at all bad. They just present themselves with their own set of challenges which can all too easily be overlooked.

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