How to Calculate Your Electric Scooter EMI Before Visiting the Showroom Today
electric scooter
Well, it is a great step towards owning an electric scooter but the wise buyers calculate their EMI beforehand simply before stepping inside a showroom. If you know the monthly payment ahead of time, then you can keep your budget in check and you’ll have a little bit more leverage when negotiating. Popular electric scooters cost anywhere from about Rs. to Rs. 1,00,000 and Rs. Little planning can make a big difference, 1,50,000 (ex-showroom). In this article, you will get to know how to accurately calculate your electric scooter EMI prior visiting the showroom.
The direct answer
In order to work out the EMI of an electric bike, you will need to have 3 numbers: the loan amount (the ex-showroom price minus down payment), the interest rate, and the tenure. Forecast the monthly payment and the total interest paid for the loan by plugging these into a two wheeler loan EMI calculator and come up with a budget that you can comfortably afford before you purchase.
The three inputs which have decided your EMI.
Knowing each input assists you to plan better:
- Loan amount: The amount due when it comes time to pay on the loan. The more you can put down, the less your loan amount and EMIs will be.
- Interest rate: The yearly percentage rate that your lender charges. The difference, no matter how small, will make a significant difference to your total cost.
- Amortization: The length of time it takes to pay back the loan, typically 12 to 48 months. The longer the term, the lower the EMI but the higher the interest paid.
An example of an electric scooter loan
The following table illustrates the EMI and interest due for an electric scooter over a few months with varying terms of financing, where the total amount to be financed is Rs. At an assumed 10 percent interest rate, 1,10,000.
| Tenure | Approximate EMI | Total interest (approx.) |
|---|---|---|
| 24 months | Around Rs. 5,075 | Around Rs. 11,800 |
| 36 months | Around Rs. 3,550 | Around Rs. 17,800 |
| 48 months | Around Rs. 2,790 | Around Rs. 24,000 |
Note: Numbers are approximate. EMI, Interest rate and processing fee will vary from lender, tenure and profile of the applicant.
A shorter loan term means a higher EMI but helps save significant interest in the life of the loan.
Simple and easy to follow steps on how to calculate EMI
The calculation of the EMI of a working electric scooter is very easy before visiting the showroom:
- Be sure to jot down the ex-showroom price of your preferred electric scooter.
- Figure out the amount of the down payment you can afford that doesn’t deplete your emergency fund.
- Subtract the down payment from the price to get your loan amount
- Go into a calculator and input the loan amount, estimated interest rate and a loan period.
- Check the EMI and Total interest and then adjust it as per your monthly budget.
- Obtain quotes from 2 or 3 lenders and see the lowest overall costs.
- Unlike financing for other vehicles, electric scooter financing has a few distinct similarities.
There are a few costs to remember when planning on electric scooters
Their initial cost is typically more expensive than petrol scooters, leading to higher loan amounts and EMIs. But the running expenses are much less, charging expenses are a small percentage of petrol, and maintenance is kept to a minimum as there are less moving parts. Include these monthly savings when planning your budget—if you can afford to pay a little more for your monthly instalments, a lot less will be required for running costs. Certain purchasers are additionally qualified for state-funded offers that cut the actual price, so inquire about which ones are offered in your area.
You should start planning ahead, because it’s worthwhile.
Once the showroom is approached after calculating the EMI, the person will be in control. You come in with a price range and won’t be forced into a longer, more expensive lease. It allows you to plan the down payment and EMI in a way that doesn’t cause financial stress, while also ensuring that you get the loan repaid on time, thus creating a good credit score. Planning also allows you plenty of time to shop around for lenders, instead of taking the broker’s first offer at the dealership.
The real vs petrol scooters comparison
It is better to calculate the EMI on an equivalent petrol scooter and not just the EMI. When considering a Two Wheeler Loan, take a broader view than just the monthly EMI and consider the total ownership cost before making a decision. So a petrol scooter might have a lower EMI as its initial price is less, but petrol and regular maintenance are much more expensive. This is the opposite with an electric scooter: a higher up-front cost and reduced running costs, as electricity is cheaper per kilometre and maintenance costs are minimal. If there is any state subsidy, then the effective price would be even lower. The actual cost of the electric scooter when you add the EMI and running costs per month, will often make it at least as competitive, if not cheaper, than petrol alternatives, so it’s important to consider the full picture, not just the EMI.
Frequently asked questions
What is the price range of the EMI of an e-scooter?
When financing an amount of approximately Rs. The EMI comes out to be approximately Rs. 1,10,000 over three years at 10 per cent. 3,550 per month.
Are electric scooters more costly to finance?
Though the initial cost is higher, this increases your EMI, the running cost and maintenance cost are also low, which makes up for it in the long run.
If I select a longer loan period, but my EMI is lesser, what should I do?
The longer the tenure, the less will be the EMI, and the more will be the interest. Choose the smallest period that you can afford.
The EMI of the electric scooter becomes an easy and confident decision when calculated beforehand before the showroom. Take the time to test out the numbers, consider the low running costs, and you’ll be able to select the right electric scooter with your finances in control.
