Case 1
- Purchase price
- 15000
- Deposit
- 1500
- Annual interest rate
- 9.99%
- Term in years
- 5
286.77
Open with these valuesATV and UTV Loan Calculator
286.77
Result: 286.77The payment shown is principal and interest only. Rates on recreational vehicles sit well above car rates because the machine is easier to lose value on and harder to repossess — the deposit is the fastest lever you have on the payment.
Worked examples
Case 2
- Purchase price
- 25000
- Deposit
- 0
- Annual interest rate
- 12.5%
- Term in years
- 6
495.28
Open with these valuesCase 3
- Purchase price
- 8000
- Deposit
- 0
- Annual interest rate
- 7.99%
- Term in years
- 3
250.65
Open with these valuesHow it's calculated
payment = P · i / (1 − (1 + i)^−n)
- StepEnter the purchase price and your deposit.
- StepAdd the annual interest rate you were quoted.
- StepSet the term in years.
- ResultTry a larger deposit — it moves the payment more than a shorter term.
What this number means
This page works out the monthly payment on a quad or side-by-side: the purchase price less the deposit, spread over the term at one twelfth of the annual rate. It is the number a dealer quotes, and also the number that hides what the machine costs to finance — which is why the page is worth reading twice. One step does the work. On the values it starts with, 15,000 at 9.99 percent over five years with 1,500 down, 13,500 is borrowed and the payment comes to 286.77. Sixty of those repay 17,206.12, so 3,706.12 of it is interest. Stretch the same 13,500 to seven years and the payment falls to 224.05, which looks like the better deal until the interest is added up: 5,319.88. Leaving the deposit out instead pushes the payment to 318.63 and the interest to 4,117.91. Compare two offers on the total interest, never on the monthly figure. What the payment does not contain is anything but principal and interest — insurance, registration, dealer fees and whatever is financed on top of the machine all sit outside it. And expect the rate to sit above a car rate: a recreational machine loses value faster and is harder to repossess than a car, and lenders price that difference into what they quote.
Why the rate sits above a car rate
A recreational machine loses value faster and is harder to repossess than a car. Lenders price that difference into the rate.
Principal and interest only
Insurance, registration and dealer fees are not in this payment. Anything financed on top of the machine sits outside it as well.
The deposit is the fastest lever
Every unit of deposit is a unit less to borrow, and it moves the payment more than a shorter term does. Dropping the 1500 deposit lifts the payment from 286.77 to 318.63.
Commonly misread
A longer term makes the loan cheaper.
It makes the payment smaller and the loan dearer. The same 13500 over seven years instead of five costs 5319.88 in interest rather than 3706.12.
Two offers are compared on their monthly payment.
The payment is the wrong figure to compare; the total interest is the right one.
I can enter the APR instead of the rate the lender quoted.
Enter the annual rate the lender quotes; the calculator divides it by twelve. An APR that already carries fees produces a payment slightly above the one on the contract.
Questions
How is the payment calculated?
The amount minus the deposit is spread over the term at one twelfth of the annual rate. With 13500 borrowed at 9.99 % over five years that is 286.77 a month.
How much does a longer term really cost?
Stretching the same 13500 from five years to seven drops the payment from 286.77 to 224.05 — and raises the interest paid from 3706.12 to 5319.88. The payment is the wrong figure to compare; the total interest is the right one.
Does a deposit make much difference?
Directly: every unit of deposit is a unit less to borrow. Dropping the 1500 deposit in the default example lifts the payment from 286.77 to 318.63 and the interest from 3706.12 to 4117.91.
What is not included in this payment?
Principal and interest only. Insurance, registration, dealer fees and anything financed on top of the machine sit outside it.
Do I enter the interest rate or the APR?
Enter the annual rate the lender quotes; the calculator divides it by twelve. An APR that already carries fees will produce a payment slightly above the one on the contract.
Sources and last check
Information, not financial advice.