Personal Experience of buying a new Bike in India: Learners' version
As I don’t know how to ride a bike, I wanted to buy an entry-segment bike. My plan was to buy a maintenance-free, refined bike. To satisfy my need, Honda came to my rescue. It was from 5th November 2019, I started hunting which bike to buy. Earlier, Honda used to have two bikes in 125cc category –
- Honda CB Shine
- Honda CB Shine SP
Both bikes were good, but the looks of CB Shine SP attracted me. So, I went to my nearest dealership, Dugar Honda, to check how it looked in real life. I didn’t have a licence, so asked how I can buy the bike. They said the bike can be bought by the one who possess a valid driving licence. I was disheartened, so I left the showroom thinking what to do. Later that day I knew from a 4 wheeler driving school, that one can also possess a bike with a learner’s license. The next day, I went to the showroom again and inquired about the same. They responded with a ‘Yes’. I was relieved. I asked them about the documents and told them I was planning to buy the bike in next month and through finance. The documents that I needed to bring were:
- Aadhar Card
- PAN Card
- Learner’s Licence
- Bank Passbook 1st page (for finance)
- 4 passport sized photo
- 2 cheques (for finance)
All was great, I was waiting for my payslip to arrive for November. Then, an amazing thing happened. A rumour was circulating in internet that Honda is going to launch a new 125cc bike, that too, with a BS6 compliant engine. I instantly searched in google about the same and found out the new bike will have many new features compared to anything available in this price range. Two days went by, rumour was spreading through different websites which were sharing their anticipations on the new bike.
On the third day, Honda unveiled the mystery by launching SP125 BS6 variant in which CBS Technology is mandatory. It had both engine start and kill switch, LED headlamps, Digital Information Display, ACG Starter Motor (Silent Start), 16% more mileage compared to Shine SP BS4 variant, PGM-Fi technology. All these with a price difference of Rs. 7000. Seeing all these features, I made up my mind that I will buy the new best-looking SP125.
The next weekend, I went to the showroom and stating my decision to buy the SP125 with the disc variant. The on-road price for Kolkata was Rs. 93639. So, I took the quotation and went home discussing my plan. I went to two other dealerships – Shree Honda and Jaiswal Honda. The amount was slightly different(every dealership had their own pros and cons). I decided I would stick to Dugar Honda since its closer to my home.
On the next weekend, I went to the showroom and booked a Black base and neon stripes SP125 disc variant. They told the bike will be available after 10 days. I decided that I will buy the bike on January itself, starting the New Year with a new bike. Call me superstitious, but I am not.
On the second weekend, that is, 11th Jan 2020, went to the showroom to buy my first bike with my bike lover pals. I didn’t know the process, but the salesman guided me through. There was quite a bit of paperwork for the bike loan. Now comes the time of payment, I paid Rs. 47300 through IMPS to Dugar Automobiles Private Limited and made Rs. 4000 cash to the Loan agent of ICICI Bank. So in total, the down payment was of Rs. 51300. I made a one-year loan which amounted to Rs. 4786 monthly. The only huge mistake I did was I didn’t ask about the rate of Interest involved in the bike loan. I realized it after getting a mail sent by ICICI Bank. After going through all the details, I found the ROI to be a staggering 23%. It is too huge for any bike. After calculation, I found I had to pay Rs. 15000 extra according to on-road price and the total amount after loan payment was around Rs. 108732. It was too late for me to close the deal so I didn’t fret that much. Since it was for 1 year only, I thought to enjoy it as a guilty pleasure. We also paid Rs. 400 for Saree-guard. Neither helmet nor bike cover was free with the bike. They only gave the Challan, loan invoice, two bike keys only. They told we will get the other documents methodically after the bike is fully registered. On 25th January afternoon, I received a phone call that I have my bike CF ready the next day at 1 pm.
On 26th January, I went with my father to the RTO Centre. We reached the RTO agent, one who called me the day before, came and inspected the document which was handed over by the dealership. We were told not to bring any documents. The agent gave us the papers and told us another agent will come to inspect the bike. In the meantime, my bike fell due to my own wrong doing. I was pulling the bike with no stands on due to a certain reason. It got minor scratches on its right side, on the foot peg, and on the exhaust. My heart skipped a beat since many were telling if the RTO Inspector finds any scratches, they would fine Rs. 5000. But the inspector was unmindful, just checked the chassis number and that’s it,Didnteven lookclosely on even a single bike. I thank my lucky stars.
On 28th January, the dealership got to know that CF was completed. So, he gave me a call to let me know the Owner’s manual and the Insurance Paper has arrived. I collected them on the next weekend.
On 11th February, SMS came from E-Vahan stating:
“[WB**H****] NEW Transaction(s) approved against vide receipt no. WB*D************ dated ##-Feb-2020. RC Under Preparation. RC can also be downloaded on DigiLocker and mParivahan mobile apps. Saltlake ARTO –Courtesy:MoRTH.”
From the SMS, it was evident that my bike number will be WB **H ****.
On 21st February, a phone call came from Dugar Honda that I need to bring my bike on 28th February to their service centre in Chinar Park as my number plate has arrived. They said it will take 10 minutes to fit it on my bike. And, I need to bring the road tax which was now available at the showroom.
On the next day (28th February), I and my father went to Chinar Park and to our surprise, they told that it would take 2 hours to place the number plate. We argued but in vain. They also took Rs. 180 for labour charge. As my bike was newly launched in the market, the marketing heads clicked pictures of me with the bike. It was fun. They also took a 15 minutes survey of the reason of purchasing this bike. After 1.5 hours, they completed their work. They fitted the number plate which is protected inside a bracket. They told us that the number plate will cost us Rs. 150 and with bracket, it would cost Rs. 250. So, we agreed for the latter since it’s more protective. No service charge was issued. Showroom owner said that the smart card would arrive 3 months after fixing the number plate to my bike.
End note: Gradually, you will receive the Smart Card or Registration Certificate of your bike. If Hypothecation is set to Y, that means you have bought your bike through finance (or loan). Else, it would be N.
After complete loan repayment, you will get a No Objection Certificate (NOC) from the bank you took loan from, give a copy of NOC to your bike-registered RTO, stating to update your Smart Card or Registration Certificate.
This was my personal experience as a newbie on how to buy a bike. Please don’t make the same mistake of not asking the ROI as I did, be aware!
Hope you liked it, always wear helmet and ride safe!