A STUDY OF IMPACTS OF PRICE AND FINANCING SCHEMES IN MAKING TWO-WHEELERS PURCHASE DECISION OF KATHMANDU BASED RIDERS

Abstract

In Nepal, during last 25 years, Two- Wheelers market is surprisingly flourishing. There is a paradigm shift in two-wheelers purchase and uses in Nepal in general and in Kathmandu in particular. Two-Wheelers in Nepal are available in a wide range of pricing starting from Rs.25000 to Rs.10,00,000. The commercial Banks, Co-Operatives and Financial Institutions are also providing Two-Wheelers purchase loans under their Hire and Purchase Schemes. They are providing short and soft term loans for Two-Wheelers purchase. Nepalese Customers are rampant purchasing Two-Wheelers obtaining loans from any Financial Institutions without enough analysis about their loan terms like interest rate, repayment time, paper process and down payments. This has, in many cases, led to more costs to be borne by the customers and they are bound to pay more prices over the actual market prices.  As an after math of this, it is seen sometimes, the customers are unable to pay premium installments (EMIs) and the financing institutions have pulled the two-wheelers purchased under financing schemes making the riders devoid of the two- wheelers bikes with them.  The researcher has, therefore, tried to conduct a research entitled as "An Impact Study of Price and Financing Schemes in making Two- Wheelers Purchase Decision of Kathmandu Based Riders" with a view to finding a solution to these financing schemes related problems and suggest them the most practical scheme for taking their Two-Wheelers purchase Decision. A Descriptive Research Design is used.  215 Respondents were consulted through structured questionnaires using Google docks and visiting different outlets and workshops and financing institutions. Their responses were recorded and analyzed using SPSS model and different statistical tools. The study primarily revealed that Nepalese Two- Wheelers riders know a very little about loans schemes and getting financing from any institutions. But it was also seen that the financing schemes and prices have a positive impact in making two-wheelers purchase decision by the Kathmandu based riders. These are by far new types of findings in Kathmandu in its kind.