Well, there’s a few different ways you can pay for your new toy. Learn about your financing options with LendingTree so you can find the best deal.
All-terrain vehicle (ATV) and powersports financing isn’t much different than taking out an auto loan. Instead of paying for your ATV up front, you secure a loan. Then, you pay back what you borrowed (plus interest) in monthly installments. If you miss too many payments, the lender can repossess your ATV.
No matter the type of loan, it’s important to make sure you can handle your monthly payments before signing on the dotted line. But when it comes to ATV loans, this may be even more critical. An ATV isn’t a necessity, so you don’t want to get in over your head for something you bought for fun.
And don’t forget your gear! Unless you plan on paying out of pocket for your helmet or gloves, you may want to roll these expenses into your loan amount. Figuring in sales tax and registration fees could be a good idea, too.
Standard auto loans are a dime a dozen, but you might have to do some digging to get a powersport loan.
If you purchase a powersports vehicle directly from the manufacturer, you might be able to secure a loan from them, too. Keep an eye out for sales events — you might find ultra-low APRs or cash rebates on specific makes and models, including:
You might need to have good credit to get a manufacturer loan, but you may be able to check your eligibility by prequalifying.
There’s a lot to like about online loans. They can be a convenient way to secure financing, even if you have a rocky credit history. But because online lenders are typically easier to qualify for, their interest rates may be higher.
There are two ways to get ATV financing with an online lender. The first is to get a loan specific to ATVs, UTVs and other powersports vehicles. The second is to take out a personal loan. Personal loans provide a lump sum of funds that you can use for almost anything, powersports included.
Some brick-and-mortar banks offer powersport loans for ATVs, UTVs and jet skis. Going this route can be great if you prefer an in-person experience. However, banks tend to have strict eligibility requirements, which could be less than ideal if you need a powersport loan but have bad credit.
Like banks, you might prefer getting ATV financing from a credit union if you like to do business one on one. You’ll have to become a member to get the loan, but it could be worth it. Credit unions tend to offer some of the lowest rates.
That said, not all credit unions offer ATV financing. Before you jump through hoops to join, you may want to make sure the credit union can provide what you need.
Getting an in-house loan from a dealer can be tempting, but this option may come at a price — especially if you’re working with a “buy-here, pay-here” dealer. While in-house financing is easier to qualify for, these loans often carry high APRs.
Rather than in-house financing, some dealers instead partner with banks and other third-party lenders. You’ll probably find this loan less expensive than an in-house loan, so it’s still wise to shop around on your own beforehand. That way, you can tell if the dealer’s loan is competitive.
Qualifying for an ATV loan is much like qualifying for an auto loan or personal loan. Many lenders require a credit score of at least 640 before they’ll offer the best rates. You still might qualify if your score is lower than that, but your APR may not be competitive.
While there are no overnight fixes, there are many steps you can take to improve your credit score, including:
Credit utilization measures how much revolving credit you’re using compared to how much you have available.
If you’re using 30% or more of your available revolving credit, you may want to pay off debt before applying for more. Here, revolving credit means credit cards, home equity lines of credit and personal lines of credit.
Almost every lender you formally apply to will check your credit with a hard credit pull. Hard credit pulls ding your score, so you should only apply for new credit or loans when you absolutely need to.
Payment history accounts for 35% of your FICO score, so paying your bills on time can have a big impact. Also, keep an open line of communication with whoever you owe. If necessary, ask about relief programs. These could help get you back on track and minimize damage to your credit.
Applying for an ATV loan follows a similar process to applying for a personal loan.
When you apply for ATV or powersports financing, the lender will ask you how much you’d like to borrow. Although you might not know exactly what you’re looking to buy, you’ll want to have a rough idea of how much you plan (and can afford) to spend.
Next, you should check your credit score and use it as a guide to determine what lenders you might qualify for. If you use LendingTree Spring, you can check your credit score for free. We can even show you how taking out an ATV loan could impact your future score.
Powersports financing comes in a few forms, so you’ll need to figure out which kind of loan is best for you. For instance, if you’re buying an ATV straight from the manufacturer, you might want to see what financing options they offer. If you’re buying an ATV from a private party, a personal loan may make sense.
Prequalifying doesn’t guarantee a lender will approve you, but it does allow you to see where you stand. You’ll have to answer a few questions about yourself and your basic finances, but the process doesn’t hurt your credit score. Prequalify for a few lenders so you can compare offers.
When you’ve found the best offer, it’s time to formally apply. The lender will ask for detailed information about your finances, and it may request copies of documents. These could include bank statements and your government-issued ID.
The lender will provide an approval decision within a few minutes or a few days (timeframes can vary). If you applied for a personal loan, you’ll receive your funds as a lump sum. If you secured dealership, bank or manufacturer financing, your loan will directly pay for your ATV. Either way, your first loan payment will usually be due in 30 days.