Motorcycle Loan Interest / APR

APR stands for the Annual Percentage Rate - the interest rate that you are charged on the amount you lend per year.

For example, if you took a $10,000 loan with an APR of 10% and a repayment term of 48 months, you would pay back an annual interest of:

$10,000 / 100 x 10 = $1,000 per year

This interest charge would be incorporated into your monthly repayments and would be pais over each of the four years (48 months) of the repayment term making the total amount repayable $14,000. The fundamental rule is this - the lower the interest rate the less money on top of the sum you lend will you have to pay. In the above example, if the interest rate was 8% then you would save $200 each year making a total saving of $800. Remember - lower is better!

When you apply for your own motorcycle loan online at trusted loan providers like E-Loan and Capital One, the interest rate that you are offered will be determined by:

1. Your Credit History
Another basic rule here - The better your credit history the better the interest rate you will receive. (If you have a bad credit history or have been declared bankrupt you can read about how you can still get a motorcycle loan here)

2. The Key Characteristics of Your Loan Request

• The age of the motorcycle you are intending to purchase,
• The type of purchase. For example, if it is a new or used motorcycle,
• The amount you want to lend,
• The term of the loan. This is the period over which you pay back the loan and the associated interest charges. This usually ranges between 30 - 60 months.

Currently interest rates start at just above the 8% mark with Motorcycle Loan Providers like Capital One and E-Loan leading the way.