Motorcycle Loans - Steps To Prevent You From Being Caught Up Side DownWritten by Jay Fran
With depreciation on motorcycles being so enormous after they are driven off showroom floor, potential for a buyer owing more on their motorcycle loan than bike is worth it quite high. Owing more on your bike than it is worth is often referred to as world of “up side down”.
Many people finding themselves in this situation discover that financial lessons are sometimes hardest and most expensive to learn. Motorcycle loans of more than 48 months (especially without a down payment) put you in position of owing more than value of bike.
Let’s take a look at this phenomenon.
First, interest calculation your lender uses can make a big difference in your situation, especially in first 18 months. There are two primary interest calculations, pre-computed (combined with rule of 78) and simple interest.
Pre-computed interest combined with Rule of 78, is typically worst situation for a buyer because most of interest is paid in first 24 months. Therefore, in first 24 months little of monthly payment has gone towards paying down principal. If a buyer wishes to sell or trade in motorcycle within this timeframe they will likely find themselves owing more than bike is worth. Statistics show that average owner trades in every 18-24 months.
Simple interest on other hand, is much more favorable for buyers since interest accrues on balance of loan. However, buyers that extend their loans for greater than 48 months can still find themselves up side down with simple interest. This is especially true if a down payment is not made. The reason this occurs is that motorcycle depreciates faster than principal is paid; leaving balance owed to lender to be more than bike can be sold for.
Ford Escape Hybrid: First Gas-Electric-Powered SUV and Ford Replacement Parts for Its Exceptional PerformanceWritten by Jenny Mc Lane
The Ford Escape Hybrid is a fuel-saving, gas-electric hybrid-power version of small, four-door sport-utility vehicle, available with front-wheel drive (FWD) or four-wheel drive (4x4). Its power train has 2.3-liter, four-cylinder gas engine rated 133 horsepower at 6,000 rpm, 129 pounds-feet of torque at 4,500 rpm; synchronous AC electric motor rated 94 hp from 3,000 to 5,000 rpm; 330-volt battery pack under rear cargo floor; electronically controlled, continuously variable transmission. Maximum power output is 155 hp because gas and electric do not make their maximum power simultaneously.
It has a 2.3-liter, Atkinson-cycle four-cylinder gasoline engine with a 70-kilowatt permanent-magnet traction electric motor, regenerative braking and a 330-volt battery pack. The combination provides performance on par with a V-6. The hybrid never has to be plugged in because engine recharges batteries, by electric motor and by heat recovered as energy during braking.
"The Escape hybrid really "wants" to be an electric vehicle, but gasoline engine adds power for acceleration, charges batteries and powers air conditioning," said Mary Ann Wright, Ford's director of Sustainable Mobility Programs
Unlike electric cars, hybrids never need to be plugged into a recharger. Regenerative braking recharges Ford Escape Hybrid, which converts electric motor into a generator to help refill battery pack during stops; and by a recharging system powered by gas engine.
Designed to last for life of vehicle and can be found under Escape's cargo floor, battery pack, which contains 250 small batteries roughly size of D cells mounted in series doesn't infringe on cargo space.
The software and computerized controllers that make everything work effectively is key to a hybrid. Small badges identify Ford Escape as a hybrid. The instrument panel is a little different because it contains a gauge that shows when electric motor is source of power and when gasoline engine is running. An optional LCD display in center stack gives instant and average fuel economy as well as a pictorial representation of how power is flowing at any instant.