Repayment terms for motorcycle loans:
Most financing sources offer a choice of repayment terms for motorcycle loans (i.e. 3 year, 4 year and 5 years).
Interest rate for motorcycle loans:
The interest rate for motorcycle loans is roughly about the same rate that is charged for auto-loans.
-- Credit Tip by FindLocalBanks.com
Federal law requires that all creditors must state the cost of their credit in terms of an Annual Percentage Rate (APR). This rate takes into account how the loan is repaid on a yearly basis, and allows you to accurately compare the cost of credit among lenders. For example: You borrow $1000 for one year and pay a finance charge of $100. If you can keep the entire $1000 for the whole year and then repay $1100 at year’s end, you are paying an APR of 10 percent. But if you repay the $1000 and finance charge (a total of $1100) in twelve equal monthly installments, you don’t really get to use $1000 for the whole year. In fact, you get to use less and less of that $1000 each month. In this case, the $100 finance charge amounts to an APR of 18 percent.
Fees for motorcycle loans:
While the exact amount in fees will vary by financing source, the fees are usually charged as a percentage of the loan amount (points).
For example, if you get a motorcycle loan for $20,000 - and there is a 1 point fee, the fee would be $200.
-- Credit Tip by FindLocalBanks.com
The finance charge is the total dollar amount you pay to use credit. It includes interest costs and other costs, such as service charges and some credit-related insurance premiums. For example: Suppose you borrow $1000 for one year, and the interest is $100. If there is a service charge of $10, the finance charge will be $110.
Down payment requirements for motorcycle loans:
Many financing sources will want a borrower to put 5 - 10% down payment towards the motorcycle.
Since rates and fees can vary by institution, always contact a couple of sources when shopping for motorcycle loans.
Credit.com offers a service that can help you get a Motorcycle Loan. Click Motorcycle Loan to learn more.
