Buying a second hand bike in India: Smart or risky choice

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Long Story Short: Time to break down the financial advantages of buying used or second hand bike in India, current India second hand bike market insights, best second hand bike app/website, documents and much more

India’s second hand bike market has grown and experienced a significant surge in recent years. This transformation, driven by various factors, has made the market a hotbed of opportunities. But is it a risk worth taking? Many potential buyers ponder this question, wondering if purchasing a used bike or two-wheeler is the wiser option.

Bike prices are witnessing a massive surge, and models with prices under 1 lakh on the road are getting fewer and fewer. We cannot pinpoint precisely one reason, but several reasons exist. So, a budget-conscious customer will look for alternatives, mainly the second hand motorcycle. But second hand bikes are like a double-edged sword. Why? Scroll down and read to know more.

The current state of the used bike market in India

The used two-wheeler market in India is thriving, with projections indicating substantial growth in the coming years. As of 2023, the market was valued at USD 41.74 billion and is expected to reach USD 69.06 billion by 2031, growing at a compound annual growth rate (CAGR) of 6.50%.

Several factors drive this growth, including the increasing demand for affordable personal mobility solutions and the rising average household income. The market is characterized by a mix of organized and unorganized sectors, with the unorganized sector contributing up to 99% of the overall market revenue.

However, the organized sector is gaining traction, with several startups and established companies offering online platforms for buying and selling a second hand bike. These platforms provide services such as vehicle inspection, financing, and warranties, which enhance customer trust and convenience.

Economic Factors Influencing the second hand or used bike market in India

Several economic factors are pivotal in shaping India’s second hand bike market. These factors influence the market and consumers’ buying decisions, from inflation and purchasing power to fuel prices and regulatory changes.

1. Inflation and Purchasing Power: High inflation rates can increase new vehicle prices, making second hand bikes more attractive for budget-conscious consumers. Used two-wheelers
   can often be purchased at 50% to 75% cheaper than new ones, providing substantial savings for buyers.
2. Fuel Prices: Rising fuel prices increase the operational costs of vehicles, prompting consumers to opt for more fuel-efficient options, including two-wheelers. This shift can boost the demand for second hand bikes, which are generally more affordable and offer better fuel efficiency than cars.
3. Economic Slowdown and COVID-19 Impact: Despite the economic slowdown induced by the COVID-19 pandemic, the used bike market grew by 11.45% in 2020. The increased need for personal mobility and two-wheeler affordability drove this growth.
4. Regulatory Changes: Implementing stricter emission norms, such as transitioning from BS6 to BS7, pushes manufacturers to produce cleaner vehicles. This shift is expected to increase the cost of new bikes, potentially making second hand bikes more attractive to cost-conscious consumers.

Pros of buying a second hand or used bike in India

1. Affordability: The most significant advantage of buying a used or second hand bike is its cost savings. Second hand bikes are generally much more affordable than new ones, empowering individuals with limited financial resources to make a wise and budget-friendly choice.
2. Lower Depreciation:Used bikes depreciate at a slower rate compared to new bikes. Suppose you decide to sell the bike in the future. In that case, you may face less financial loss, providing a sense of economic security.
3. Lower Insurance Costs: Insurance premiums for used bikes are typically lower than those for new bikes, which can result in significant savings over time.
4. Variety and Availability: The second hand market offers a wide range of makes, models, and years, allowing buyers to choose from multiple options that fit their preferences and budget. This variety empowers buyers to choose what best suits their needs.
5. Benefits: Buying a second hand bike can be more environmentally friendly as it extends the life of existing motorcycles, reducing the demand for new ones and the associated manufacturing emissions.

Cons of buying a second hand or used bike in India

1. Higher Maintenance and Repair Costs: Used bikes may require more frequent maintenance and repairs, which can add to the overall cost of ownership.
2. Limited Warranty: Unlike new bikes, second hand bikes usually do not have a manufacturer’s warranty, leaving the buyer responsible for any repair costs.
3. Uncertain History and Condition: Knowing the bike’s previous usage, accidents, and maintenance records is necessary to purchase a motorcycle with hidden problems or mechanical issues.
4. Higher Interest Rates on Loans: If financing is required, second hand bike loans often come with higher interest rates than new bike loans, as financial institutions perceive used bikes as riskier investments.
5. Potential for Fraud or Scams: There is a risk of fraud or scams in the second hand market, making it essential to thoroughly inspect the bike, verify ownership, and ensure all legal documents are in order.

Legal Requirements & Regulations buying a second hand bike in India

When buying a second hand bike in India, it’s crucial to be aware of the legal requirements and necessary documentation:

1. Registration Certificate (RC) Book: This document proves the bike is registered with the Regional Transport Office (RTO).
2. Bike Insurance: A valid insurance policy is mandatory for the bike.
3. Pollution Under Control (PUC) Certificate: confirms that the bike meets pollution norms.
4. No Objection Certificate (NOC): Required if the bike was purchased on a loan or is being transferred from another state.
5. Forms 29 and 30: These forms are necessary to transfer ownership.
6. Identity and Address Proof: The buyer must provide valid identity and address proof.

Ensuring all these documents are in order is crucial for a smooth legal transaction.

Top second hand or used bike apps/websites in India

1. OLX

Official website link: Olx Bikes

Strengths:

OLX is highly recommended for its ability to connect local buyers and sellers, allowing potential buyers to quickly locate and test-ride bikes before purchasing.

User Experience:

The platform offers a user-friendly interface for browsing listings and contacting sellers.

Variety:

A wide range of bikes is available due to their popularity among individual sellers.

Pros of OLX second hand bike website/app

1. Wide Reach and User Base: OLX has a large user base with about 200 million active users per month and 25 million listings, increasing the chances of finding a suitable bike.
2. Free Listings: The platform allows users to list their bikes for free, which is cost-effective for sellers.
3. Local Search Feature: OLX offers a location-based search feature that enables buyers to find nearby sellers and facilitates easier inspections and transactions.
4. Variety of Options: With vast listings, buyers have access to various bikes, allowing them to compare different models and prices.
5. Direct Communication: The platform provides a messaging service enabling buyers and sellers to communicate directly, which can help negotiate and arrange rides.

Cons of OLX second hand bike website/app

1. Lack of Quality Assurance: OLX provides no quality checks or guarantees on the products listed. Buyers must rely on their judgment and inspection skills to assess the bike’s condition.
2. Risk of Fraud and Fake Ads: The platform is susceptible to fraudulent activities and fake advertisements, as it does not verify the authenticity of listings.
3. Dependence on Technology: As an online platform, OLX requires users to have internet access and some level of digital literacy, which may exclude non-internet users.
4. Delayed Responses: Since the platform relies on user activity, there can be delays in communication and responses, which might slow down the buying process.
5. Competition from Other Platforms: OLX faces stiff competition from other online and offline platforms, which might affect the number of listings and the speed of transactions.

2. BikeDekho

Official website link: BikeDekho Used Bikes

Strengths:

Known for having India’s most extensive collection of genuine used bikes.

Reliability:

BikeDekho’s reputation for genuine listings enhances its credibility.

Variety:

Extensive selection of used bikes across various cities in India.

Pros of second hand bike website/app

1. Comprehensive Listings: BikeDekho offers one of India’s most extensive collections of genuine used bikes, providing detailed listings with images and prices.
2. Specialized Platform: As a platform focused on vehicles, BikeDekho ensures bike-related features and information are prioritized.
3. Bargaining Opportunities: If there are multiple showrooms of a particular brand, buyers might be able to negotiate better deals, such as free insurance or accessories.

Cons of second hand bike website/app

1. Variable Selection and Condition: The condition of bikes can vary significantly, and sellers may not always provide complete information about the bike’s history.
2. Lack of Guarantees: There might be no guarantees regarding the condition or performance of the bikes purchased through the platform.
3. Potential for Limited Transparency: While online platforms offer transparency in pricing, there can still be challenges in verifying the actual condition and history of the bike.

3. CredR

Official website link: CredR Used Bikes

Strengths:

Specializes in buying and selling second hand bike with inspection and certification services.

Safety:

CredR’s inspection and certification process adds more assurance for buyers.

Reliability:

The platform’s focus on quality and reliability makes it trustworthy.

Pros:

1. Comprehensive Inspection and Certification: CredR offers a thorough inspection process for their used bikes, which includes over 120 checkpoints conducted by auto experts.
2. Warranty and Buy Protection: The platform provides a 6-month comprehensive warranty covering critical bike parts and a 7-day buy protection policy.
3. Hassle-Free Buying and Selling process: CredR offers a streamlined process for buying and selling bikes, including free inspections and home test drives for buyers.
4. Customer Satisfaction: CredR has a good reputation among customers, with a 4.2 customer rating in Bellandur, Bangalore.

Cons:

1. Issues with RC Transfer: There have been reports of problems with transferring registration certificates (RC), leading to delays or failures in transferring ownership.
2. Pricing Concerns: Some users have expressed concerns about the pricing of bikes on CredR, describing it as “completely absurd”.
3. Customer Service Challenges: Instances of difficulties in getting satisfactory responses from CredR’s customer support have been reported, particularly in resolving post-sale issues.

4. DriveX

Official website link: DriveX Used Bikes

Strengths:

Offers quality used bikes certified and evaluated at over 100 checkpoints.

User Experience:

Provides simple financing options, RC transfer, and free home delivery.

Safety:

Implements stringent measures to verify the legitimacy of each listed bike.

Pros of second hand bike website/app

1. Wide Market Reach: DriveX connects buyers and sellers across India, transcending local market limitations.
2. Convenience and Time Efficiency: The platform allows users to browse various options from the comfort of their homes.
3. Transparency in Pricing: DriveX provides tools and resources to help users determine the fair market value of a used bike.
4. User Reviews and Ratings: The platform facilitates informed decision-making by providing access to reviews and ratings from previous buyers.
5. Secure Transactions: DriveX prioritizes the security of financial transactions, offering secure payment gateways.
6. Comprehensive Vehicle History Reports: Buyers can access detailed vehicle history reports, including information on accidents, repairs, and maintenance.
7. Hassle-Free Documentation and Evaluation: DriveX offers sellers hassle-free documentation and free doorstep evaluation.
8. Quality Assurance: The platform ensures that all bikes are meticulously inspected and refurbished to meet stringent standards.

Cons of second hand bike website/app

1. Dependence on Internet Access: As an online platform, DriveX requires users to have reliable Internet access.
2. Limited Physical Interaction: While DriveX offers test rides, the initial browsing and selection process is entirely online.
3. Potential for Information Overload: The vast amount of information and options on the platform can overwhelm some users.
4. Competition with Other Platforms: DriveX faces competition from other online platforms, potentially dividing the user base.

5. BeepKart

Official website link: Beepkart Used Bikes

Strengths:

Offers best quality bikes with a one-year warranty and three free services.

User Experience:

Provides an assured buyback option, enhancing the overall buying experience.

Reliability:

The warranty and free services indicate confidence in the quality of the bike.

Pros of second hand bike website/app

1. Wide Range of Options: BeepKart offers a variety of used bikes and scooters at competitive prices.
2. Warranty and Services: The platform provides a 1-year warranty and three free services for a year.
3. Assured Buyback and Document Transfer: BeepKart offers an assured buyback option and handles the transfer of ownership documents.
4. Free Doorstep Test Ride: Customers can avail of a free test ride at their doorstep.
5. Digital-First Approach: BeepKart’s digital platform is designed to provide a seamless experience with features like detailed inspection reports and bike comparisons.

Cons of second hand bike website/app

1. Negative Customer Reviews: There are numerous complaints about BeepKart’s service quality, including issues with refunds, poor customer service, and misleading information about the condition of bikes.
2. Delayed Responses and Inspections: Some users have reported delays in vehicle inspections and responses from the customer service team.
3. Quality Concerns: Several reviews mention that the bikes sold by BeepKart may have hidden issues or are not as described.
4. Pricing Issues: Customers have expressed concerns about the pricing of bikes, stating that the offers made by BeepKart are often lower than expected or fair market value.
5. Trust and Transparency: There are allegations of a lack of transparency in transactions, with some users feeling that the platform employs tactics to delay payments or refunds.

6. Droom

Official website link: Droom Used Bikes

Strengths:

Top-rated app for buying and selling vehicles, including new and used bikes.

Variety:

Wide range of options for buyers, catering to different preferences and budgets.

Pros of second hand bike website/app

1. Technology-Driven Platform: Droom utilizes cutting-edge technology and data analytics, including features like virtual reality showrooms and vehicle history reports.
2. Wide Range of Inventory: The platform offers diverse vehicles, including a broad range of used bikes.
3. Transparent Pricing: Droom provides accurate and fair pricing information, empowering customers to make informed decisions.
4. Trust and Safety Measures: The platform implements stringent verification and quality checks to ensure transaction security.
5. Strategic Partnerships: with leading automotive brands and financial institutions have expanded Droom’s offerings.

Cons of second hand bike website/app

1. Competition: Droom faces significant competition from other established platforms like CarDekho, CarTrade, and OLX Autos .
2. Regulatory Challenges: The platform must navigate various regulatory changes that can impact its operations and growth.
3. Economic Uncertainties: fluctuations can affect consumer purchasing power and demand for used vehicles.
4. User Experience Concerns: Some users have reported issues with the platform’s user interface and customer service.

Recent trends impacting the Second hand bike market

Several trends are shaping the second hand bike market in India:

1. Electrification: The growing emphasis on electric vehicles will likely influence the second hand market as more electric two-wheelers become available.
2. Urbanization: Rapid urbanization and the need for efficient transportation solutions drive the demand for two-wheelers in congested urban areas.
3. Technological Advancements: The rise of digital platforms transforms how used bikes are bought and sold, enhancing transaction transparency and efficiency.
4. Shift in Consumer Preferences: There’s a growing interest in sustainable and environmentally friendly transportation options, which may increase demand for used electric bikes.

FAQ related to buying a second hand or used bike in India

1. What are the cost savings of buying a used bike compared to a new one in India?

Used bikes in India can often be purchased at 50% to 75% cheaper than their original cost. This significant price difference makes second hand bikes an attractive option for budget-conscious buyers, especially considering the growing market for used two-wheelers.

2. How do I verify a used bike’s legal status and ownership?

Verifying the legal status involves checking several documents:

1. Registration Certificate (RC)
2. Insurance certificate
3. Pollution Under Control (PUC) certificate
4. No Objection Certificate (NOC) if the bike is from another state
5. Forms 29 and 30 for transfer of ownership

With the increasing digitization of vehicle records, buyers can also use online portals like Parivahan Sewa to verify vehicle details.

3. What should I look for when inspecting a used bike before purchase?

Key areas to inspect include:

1. Overall condition and signs of accidents or repairs
2. Engine performance and unusual noises
3. Tyre condition and age
4. Electrical system functionality
5. Rust or corrosion, especially on the frame
6. Mileage and maintenance history

With advancements in diagnostic tools, consider using professional inspection services offered by some online platforms for a thorough assessment.

4. How does the insurance process work for a second hand bike?

When buying a used bike, you must transfer the existing insurance policy to your name or purchase a new one. The process involves:

1. Contacting the insurance company with the sale deed and other necessary documents
2. Updating the policy with the new owner’s details
3. Paying any applicable transfer fees

Many insurance companies offer streamlined online processes for policy transfers and renewals.

5. What financing options are there for buying a second hand bike in India?

Financing options for used bikes include:

1. Bank loans
2. Non-banking financial companies (NBFCs) specializing in two-wheeler loans
3. Online lending platforms
4. Dealer financing options: With the growth of fintech, more digital-first lending options are available, often offering competitive interest rates and quick approval processes.

6. How does the depreciation of a used bike compare to a new one?

Used bikes generally depreciate at a slower rate compared to new bikes. While new bikes can lose 20-30% of their value in the first year, used bikes tend to have a more stable value if well-maintained. This slower depreciation can be advantageous for buyers looking to resell.

7. What are the maintenance costs associated with owning a used bike?

Maintenance costs for used bikes can vary depending on the model, age, and condition. Generally, older bikes may require more frequent servicing and parts replacement. It’s advisable to budget for:

1. Regular servicing (oil changes, tune-ups)
2. Tyre replacements
3. Battery replacements
4. Potential repairs for wear and tear

With the increasing complexity of bike technology, some maintenance tasks may require specialized tools or expertise.

8. How do I transfer the bike’s registration to my name?

The process involves:

1. Filling out Form 29 (notice of transfer) and Form 30 (report of transfer)
2. Submitting these forms along with the RC, insurance certificate, and PUC to the RTO
3. Paying the required fees
4. Obtaining a new RC in your name, many RTOs offer online services for registration transfers, making the process more convenient.

9. What are the risks of buying a used bike from an individual seller versus a dealership?

Risks from individual sellers:

1. Potential for hidden mechanical issues
2. Lack of warranty or after-sales support
3. Possible legal complications if proper documentation is not in order

Advantages of dealerships:

1. Often offer warranties or guarantees
2. May provide certified pre-owned bikes
3. Generally, handle paperwork and transfers
4. More likely to have conducted thorough inspections

Online platforms are bridging this gap by offering services like inspections, warranties, and secure transactions for private sales.

10. How does the increasing popularity of electric bikes affect the used bike market in India?

The rise of electric bikes is impacting the used bike market in several ways:

1. Increasing Availability of used electric bikes
2. Potential decrease in value for specific petrol-powered models
3. Growing interest in electric conversions for older bikes
4. New considerations for buyers (battery life, charging infrastructure)

With India’s push towards electric mobility, the market for used electric bikes is expected to grow, offering new opportunities and considerations for buyers.

Other related articles from Bikeleague India

1. Second hand motorcycle: Things to know when buying It
2. Bike ownership transfer in India – step by step guide
3. Compare bikes & scooters in India
4. Motorcycle RC book in India: Exploring Book vs Digital
5. Motorcycle helmet in India – All in one buying guide

Conclusion

Considering the current market trends, economic factors, and consumer needs, buying used or second hand bikes in India can be a good idea for many consumers. The significant cost savings, a wide variety of options, and environmental benefits make used bikes attractive, especially for budget-conscious buyers and those seeking affordable personal mobility solutions.

However, it’s crucial to approach the purchase with caution and due diligence. Thoroughly inspect the bike, verify all necessary documents, and consider factors such as maintenance costs and potential repairs. Using reputable platforms and services can help mitigate the risks of buying used vehicles.

If you have any other doubts or queries about bike riding tips during rain, email us at bikeleague2017@gmail.com. We are always eager to help and assist you. Also, here are several social media platforms of Bikeleague India to raise your suspicions.