Guide to owning your first motorcycle

SINGAPORE – Whether you are looking to buy your first motorcycle after getting that licence or getting back on the saddle after a hiatus, the starting point for owning a two-wheeler can be intimidating.

Buyers can become overwhelmed with the plethora of choices, such as financing options and insurance coverage.

The Straits Times spoke to Mr Wang Yinghao, branch manager at automotive retailer Yew Heng Group, and Mr Mohammad Haritz, after-sales manager at motorcycle dealer Mah, to find out what questions a buyer should be asking before making the purchase.

Is a “$0 down payment promotion” too good to be true?

That depends on the motorcyclist’s needs at the moment, according to Mr Haritz.

He said: “While there are many shops promoting deals with no down payment, this naturally means the interest rates on monthly instalments are much higher.”

The current market rate for motorcycle loans being offered by most motorcycle dealers stands at between 3 and 5 per cent. For deals without any down payments, the interest rate can be as high as 7 per cent, according to Mr Haritz.

“There can also be hidden fees within the promotions, including extra administrative and service fees. Those who eventually find the interest fees too exorbitant might also be charged a full settlement fee, if they attempt to pay off the loan for the motorcycle before the agreed date.”

His advice?

“Purchase motorcycles only from established dealers and ask for a full cost breakdown and financing options before signing any agreements,” said Mr Haritz.

New vs second-hand motorcycle

Many riders, including myself when I first started out, believed that used motorcycles present better value as the entry point was more palatable. Who wants to pay $20,000 for a new motorcycle when you can get the same bike for half the price on online marketplace Carousell?

But while a used motorcycle may be a lower financial barrier to entry for a rider, it may not always be the cheaper option in the grand scheme of things.

In 2023, I bought my first motorcycle, a 20-year-old Honda Phantom TA200, for $2,500. A new, comparable model would have cost between $15,000 and $17,000 – money that I was not keen to part with.

While most of this boils down to an individual’s budget, it is important to work out the sums before making any short-sighted decisions, said Mr Wang.

“I know most people, especially new riders, will struggle with this decision. They will be wondering if they should buy a used motorcycle to save some money so that they can upgrade their ride when they get their Class 2A or 2 licence,” he said.

In Singapore, Class 2B is the basic motorcycle riding licence and it allows the holder to ride motorcycles with engines no bigger than 200cc.

The Class 2A licence is for motorcycles that are up to 400cc. Only riders who have held a valid Class 2B licence for at least a year can apply for it. And only after holding a Class 2A licence for a year can a rider apply to get a Class 2 licence, which covers all motorcycles.

But Mr Wang advised riders against being penny wise, pound foolish.

“You have to see how much you are actually saving when buying a second-hand motorcycle. You have to understand how the machine depreciates because there is the certificate of entitlement (COE) to consider,” he added.

A valid COE is needed for the motorcycle to be allowed on the road. It is valid for 10 years. If the motorcycle is deregistered before the COE expires, the remaining value is refunded to the owner.

In my case, the motorcycle I bought had only one year left on its COE. This meant that I spent $2,500 for 12 months of ownership.

But if stumping up for a new motorcycle is not an option, those looking to buy a pre-owned motorcycle should go to a reputable dealer, Mr Wang advised. These shops would have checked the motorcycles to ensure they are in good, serviceable condition. Some shops also offer limited warranty, giving the buyer added assurance.

Bypassing shops and buying directly from private owners can be cheaper, but comes with risks.

“We have heard of cases where the seller removed parts of the motorcycle before passing the machine to the buyer. You might not even be able to tell if anything is missing,” Mr Wang said.

Third-party or comprehensive insurance?

As motor insurance coverage is regulated in Singapore, the choices are relatively straightforward, said Mr Haritz.

Riders will minimally need to purchase third-party insurance coverage to be able to ride their two-wheelers on the road. The premiums payable are based on their riding experience and age.

“There has always been an argument for third-party versus comprehensive coverage among riders. Of course, one is more expensive than the other, but the difference tapers off as you get older and become more experienced at riding,” Mr Haritz added.

“I would recommend that riders purchase comprehensive coverage if they can afford it. If not, they will have to pay out of pocket for any damage to their motorcycle – including accidental drops or falls.”

This becomes more relevant to higher-value motorcycles from brands such as Ducati or BMW, said Mr Wang.

“These motorcycles and their parts are a lot more costly. I have seen cases where the repair bill went up to $30,000. So are you willing to take the risk of having to pay for this yourself or pay for comprehensive insurance yearly? The choice is quite clear to me,” Mr Wang said.

What type of motorcycle is best for me?

While many riders imagine themselves cruising along the highway on their dream motorcycle, Mr Haritz advised buyers to be realistic about how they will actually use the vehicle.

“I’ve had customers come in wanting a big, powerful touring motorcycle, with the idea that they would be travelling across borders frequently. But in reality, they go touring only once a year. For the majority of the time, they are using the motorcycle for their daily commute,” he said.

This could be unwise as overpowered motorcycles would be difficult to manoeuvre in Singapore’s traffic. The maintenance cost of bigger touring motorcycles would also be much higher, he added.

Delivery riders, for example, should consider scooters that are easy to operate. These motorcycles have an automatic transmission, typically come with more storage space and are nimble in traffic.

“While I’ve seen some delivery riders ask for sport models, they usually start complaining about comfort after a while, as the riding position of a sports bike is very high and more weight is on the rider’s arms and back,” Mr Haritz said.

Both Mr Haritz and Mr Wang also agree that those looking to ride should gear up for their own safety. This includes investing in a quality helmet, a pair of gloves and even a riding jacket.

But more than that, the call of the open roads is undeniable. Think the wind in your face, the rumble of the engine and the pleasure of twisting the throttle.

And even if the price is not right for you now, that does not mean you have to forgo your dream.

“I have been seeing more people in their 40s and 50s get their motorcycle licence. Many did not do so earlier because their parents did not allow them to, or they couldn’t afford it then. But now that they are financially able to, they still want to fulfil their dream,” said Mr Wang.