Total Cost of Ownership for Bikes

Getting bikes on EMI is often hyped up to be easy. However, the real cost is seen only after the purchase.

Most bike advertisements, on TV, in print or even on social media, are rife with claims of 0% interest, and low maintenance costs. But the real cost of owning a bike goes far beyond those claims and deep into your wallet.

Post purchase expenses of owning a bike include undergoing hassle-some procedures such as relocation and RTO registration, and regular maintenance and insurance charges. The total cost of ownership for a bike is calculated after factoring in these expenses, along with depreciation over a specific period of time.


Bike insurance can be tricky. Firstly, you’ll need to understand the type of coverage each insurance plan offers. Since some insurance types do not factor in the depreciation, they tend to cost significantly more.

Bike insurance costs can range between Rs.900/year for a third party insurance to Rs.2,100/year for a zero depreciation insurance. On average, standard bike insurance plans come up to Rs.1750/year.


Here’s a biggie! We all know that vehicle maintenance can be quite a pain to the pocket. A typical bike needs servicing every 100 days or 3000 kms, whichever is earlier. The total maintenance cost for a Honda Activa, for instance, comes up to Rs.0.52/km for 4 years, a reasonably conservative time period to expect one to own the bike for. As you keep adding more distance and time to the bike, the cost of maintenance keeps going up. While this example is true for new bikes, this cost can be even higher for second hand bikes, depending on how old the bike is or how many kilometers it has travelled.

Moving Your Bike:

Packers and movers are a highly unorganized sector, with price variance being extremely large, and multiple factors such as demand and location contributing to the total price the customer eventually pay. You can choose between cargo truck shipment or train shipment. Train shipments usually cost much lower, at about Rs.2,000 – Rs.4,000 between, say Pune and Hyderabad. However train shipments are also unreliable, with few measures to ensure your bikes’ safety. On the other hand, cargo truck shipment of your bike comes at a premium cost. Depending on the year of manufacturing and the cost of your bike, shipping your bike from Pune to Hyderabad can cost between Rs.4,000 and Rs.8,000 (including taxes) and the shipping time usually ranges between 3 to 5 days, basis the distance.

RTO Charges:

Once you’ve bought a bike, you also need clearances from the Regional Transport Office in your city. They charges for a scooter (like Honda Activa) and hybrid (like Honda Navi) are around Rs.6,100. This cost more than double, at around Rs.13,000 for motorcycles. Also, this excludes the hassle you face with registrations and shifting the said registration when you move cities.


Vehicles are one of the fastest depreciating assets. Most bikes already lose 10-15% of their value the minute they leave the showroom. After that, expect a 10% depreciation each year till 5 years.

Total Cost of Ownership

The 5 year cost of owning a new bike is usually between 1.5X to 2X the bike’s ex-showroom price, excluding any relocation expenses or any upgrades that you make to your bike. With RentoMojo, your total cost of ownership is completely redefined.

Firstly, our bikes are completely insured with a zero depreciation cover plan. This means you do not have to insure the bike separately. Secondly, we also provide free maintenance for each vehicle, further reducing your costs. Moreover, when you move cities, instead of incurring the complete cost of shifting both the vehicle, and the registration to another city, we provide you with the same vehicle at your destination. This not only saves you time and hassle, but also prevents potential damages that can occur to a vehicle in transit.

Lastly, since you do not have to worry about reselling the bike, its depreciated value does not affect your wallet, ensuring that the total cost of owning the bike with RentoMojo stays low and extremely affordable.

  1. I’m buying a $2500 ninja 300 that comes with gear. Besides insurance, how much do you think it will cost to maintain with tires, chains, sprockets, oil etc?

  2. This is very informational. Thanks for sharing your informative article with us. Keep up the fantastic work.
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