Representative example: Logan finances a motorcycle
Now that he has an M Class license, Logan, a resident of Ontario, can ride a motorcycle. First, though, he needs to buy a bike. After doing some research, Logan heads to a nearby dealership, where he finds a 2020 Honda CB300R priced at $4,950.00. Logan makes a 10% down payment of $495.00 and heads to his local bank to get an auto loan to cover the remaining $4,455.00 + $643.50 HST on the purchase price.
Because Logan has a solid credit history, he is approved for a $5,098.50 auto loan with competitive terms. Along with the cost of his loan, he also pays around $180.00 to register his bike with the province of Ontario – this includes the cost of license plates, a sticker and a vehicle permit.
|Cost of new car||$4,950.00|
|Loan type||Auto loan (term loan)|
|Interest rate (APR)||4.90%|
|Loan term||3 years|
|Additional fees||4.00% origination fee ($203.94)|
|Payment||$152.58 monthly or $70.35 biweekly|
|Total loan cost||$5,492.88 with monthly payments or $5,487.30 with biweekly payments|
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.