Is a 5-year scooter loan better than a shorter-term loan?

When deciding between a 5-year scooter loan and a shorter-term loan, it's essential to weigh the pros and cons based on your financial situation and needs.

Parameter 5-Year Scooter Loan Shorter-Term Scooter Loan

Monthly Payments Lower Higher

Scooter Budget Allows expensive models May not allow expensive models

Credit History Builds over a longer term Less time to build

Total Interest Potentially lower Lower over full tenure

Customisation More flexible terms Less flexibility Total Debt Burden Higher over full tenure Lower over full tenure

Interest Payment More upfront Less upfront

Risk Tolerance Needs fiscal discipline More prudent choice

Impact of Default Hurts credit score longer Lesser impact on credit

5-year loans offer flexibility but require discipline, while shorter tenure loans are more prudent but less customisable. One's financial situation and scooter requirement should typically determine ideal loan tenure.