How this number is made
A motorcycle loan is a small secured installment loan. Gap between the loan and a quick resale is common in the first year. The payment itself is ordinary amortization.
- Amount financed is after the down payment and before a fee you pay in cash.
- The rate is the rate in the note. A promotional rate that expires is not this page.
Formula
Payment = P × r(1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12.
Worked example
With the figures already in the form, monthly payment is $348.39.
Questions
Why is this its own page?
Motorcycle notes are usually short. The default is four years.
Are fees included?
Only if you added them to the amount financed. A fee paid in cash is a cost, but it does not change this payment.