Representative example: Aiysha buys a Kawasaki
Aiysha, a resident of Ontario, just got her M Class license and wants to hit the streets on a new motorcycle. After doing a little research, she heads to a nearby dealership to look at a 2020 Kawasaki Ninja 400 ABS priced at $7,400.00. Aiysha loves the look and feel of the bike, which rides powerfully but isn’t too tough for her to handle as a novice.
She makes a 15% deposit of $1,110.00 on the bike and applies for dealership financing to cover the rest ($6,290.00) plus 13% HST. Because of her solid credit history, Aiysha is approved for an auto loan with competitive terms. Along with the cost of her loan, she also pays around $180.00 to register the bike with the province of Ontario – this includes the cost of license plates, a sticker and a vehicle permit.
| Cost of new motorcycle | $7,400.00 |
| Loan type | Auto loan (term loan) |
| Loan amount | $7,252.00 |
| Interest rate (APR) | 5.50% |
| Loan term | 5 years |
| Additional fees | 4.00% origination fee ($290.08) $0.00 application fee (waived by lender) |
| Payment | $138.52 monthly or $63.86 biweekly |
| Total loan cost | $8,311.20 with monthly payments or $8,301.80 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.