84 Month Motorcycle Loan

Note for 2013 Motorcycle Loans: We now handle all motorcycle financing with our partner. Their rates convinced us and their customer service is better than what we could provide. Bad credit applicants are accepted, and their terms and APR are very good for poor credit buyers. See above menu please.

If you want an 84 month motorcycle loan you have obviously the been smart enough to do the math all the cost of funding and the interest rate you want to pay.

84 months directly translates into 7 years so we can do some pretty basic math to figure out what your cost of funding is going to be. Using a simple loan calculator which we will provide later this month on this web site we can calculate the cost this motorcycle is going to have associated with as far as interest goes.

For the sake of argument let’s just say that the motorcycle you want to buy is going to cost you $7,000 and you want a stretch your loan out for a seven year term. Let us also say that your credit is somewhat damaged and you have a FICO score of 650, causing your interest rate to be 12% APR.

Now let’s say you are smart enough to make your payments on a biweekly schedule for the duration of the 84 months. The calculation results are displayed below;

Motorcycle Loan Calculation Results 84 Months at 12% APR/biweekly
Total Amount to be payed: $9,956.13
Total amount of interest $2,956.13
Payments: $54.55

So as you can see by our calculation above the total amount to be paid is $9,956.13 and keep in mind that the actual principal of the loan is only $7,000 which is of course what the motorcycle cost.

You can also see that the total interest you are paying on this loan is $2956.13 over the seven year term (84 months).

You can see that the payment you have to make every two weeks is $54.55. Actually not a bad deal you consider that you get a brand-new bike.

Of course if you’re interest rate on the loan is higher because of a really bad FICO score you are looking at a much higher cost of funding. Let’s do that example below;

For this example will change it up a little bit and say that the motorcycle will cost $10,000, the interest rate is 16% APR, and you are only making a payment once a month. Of course we will keep the term at 84 months.

Motorcycle Loan Calculation Results 84 Months at 16% APR/monthly

Total Amount to be payed: $15,665.86
Total amount of interest $5,665.86
Payments: $183.94

Notice now that the the total amount of interest you pay over the seven years isover $5,000 and your payments are just shy of $200 every month. Over they the 84 months you are paying almost double the interest for your motorcycle loan as compared with the first example.

I know that some motorcycle enthusiasts would not even sniff at paying $183 a month to ride the motorcycle they love. Even if they are paying a lot more interest over the term of the loan. This is how banks make their money – from people (consumers) that want their motorcycle right away and they want the lowest possible payments over the longest period of time.

Like I have said many other times you need to try to protect your credit score so you can keep the interest rate down to a reasonable level – ideally 9% which is the lowest most lending institutions will go for motorcycle loan at the time of this writing.