Auto Loan
ATV Financing and Loans in 2023
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Key Takeaways
Owning an All-Terrain Vehicle is a dream for most, especially if you are interested in off-road driving. While renting an ATV is an option, many lenders offer ATV financing, which is common and affordable and has good credit scores. Though difficult, there is also bad credit financing for ATV, which is offered by some of the lenders.
ATVs may be different when compared to a car, but ATV financing is similar to car financing. With loan terms offered between one and six years, you can borrow from dealers and lenders offering affordable monthly payments.
However, it is not easy to find loans for ATVs. This is mainly because there are very few lenders offering loans for ATVs and UTVs, probably due to the low popularity of these cars. One should consider the total cost of the ATV, the fixed interest rate, and the loan term length to calculate the total cost of ATV financing.
Understanding the terms and conditions of auto loans can help you make an informed decision when financing your ATV. Here is a breakdown of the ATV financing rates for the years with the Annual Percentage Rate (APR), minimum loan amounts, and the estimated monthly payments per $1,000 borrowed for different loan terms.
Just like car financing, the rates will change based on credit scores and other similar factors.
| Term | Average APR |
|---|---|
| Up to 48 months | 6.84% |
| Up to 60 months | 6.94% |
| Up to 66 months | 7.30% |
| Up to 75 months | 7.15% |
| Up to 84 months | 7.99% |
| Up to 96 months | 11.49% |
* APR, just like all loans and rates depends on credit and underwriting rules, as well as approval.
Use an ATV financing calculator like the ones provided by Way to see how much you need to borrow and your monthly payments to buy an ATV.
For example, when applying for an auto loan, you'll need to produce proof of income. Then, your credit report will be pulled and examined for your loan approval. Your credit score is a vital factor in ATV or powersports loans, just like any other loan.
While the minimum credit score will vary by lender, the higher your score, the better interest rate you'll receive. If your credit isn't where you want it to be, you might not get the cheapest APR, even though you might find a fair share of lenders who specialize in bad credit financing for ATVs.
Preapproval is an easy and faster way to shop around for ATVs. In addition to using the ATV financing calculator a preapproval will fetch you good rates and allow you to negotiate offers with lenders.
Here's what you'll need to get preapproved:
To get a Powersport loan, you'll need to be ready with the following documents and necessary paperwork.
Apply for the loan
Do your research and shortlist your options. Find out what interest rates lenders are advertising and what's real. Know that your local credit union or national bank could be possible lenders. Finalize the loan based on your preferences.
1.Bank
Banks usually have a well-known name, customer service that is open 24/7, and mobile apps that can be used in many ways. But some banks might not offer loans for powersports or ATVs, and those that do might not have the best rates.
2.Credit union
Most of the time, credit unions have lower loan rates than banks. Some are easy to join, like Consumers Credit Union, where all you have to do is give a one-time $5 donation.
3.Online lender
Borrowing from online lenders can be risky as some online lenders who offer unsecured personal loans may charge more than other places.
4.ATV manufacturer
ATV manufacturers vehicles like Honda, Polaris, and Yamaha may be able to help you pay for the one you want. Depending on the model and when you want to buy, the company may also offer a rebate as a way to help you pay for it. You might need good to great credit to get rebates or low-interest loans.
5.Dealership
Most dealers will help you get a loan approved from a bank, credit union, or the car's maker. Most of the time, though, they are not lenders themselves. So-called "buy-here, pay-here" dealers may have high prices and high APRs.
If you don't qualify for any of the traditional options, you could use a credit card, ideally with a big down payment, or pay cash.
It is possible that you could also look into other ways to pay for an ATV or powersport vehicle, depending on your options, such as:
Person-to-person loan
You might be able to borrow money from someone, like a friend or family member. This could be a good idea if you have a good relationship with the person, won't hurt their finances, and know you can pay back the loan on time. With this option, you might be able to avoid paying interest, but you should be careful if you choose it.
HELOCs
Home equity line of credit is a risky option. It is like a second mortgage because it lets you use some of the value of your home. But it is usually not advised to use a HELOC. By taking on more debt, you could end up owing more than your home is worth. Also, if you can't pay back your loan, you could end up losing your home.
Credit cards
You can use a credit card to buy an ATV if you have a high credit limit and are sure you can pay it off on time. If you can get reward points for your purchase, this idea is even more appealing. But if you have a history of untimely payments on time, this is a risky choice because you could easily get into more debt and hurt your credit score even more.
Since most of the powersport loans are personal loans, you could use them to pay for any powersport or ATV you buy. But your options can be limited if you have bad credit. However, several lenders specialize in providing options for those with lower credit scores.
| Lender | Minimum Credit Score | APR Range | Loan Terms | Loan Amounts |
|---|---|---|---|---|
| Upstart | 300 | 6.70% - 35.99% | 36 or 60 months | $1,000 - $50,000 |
| Avant | 550 | 9.95% - 35.99% | 24 to 60 months | $2,000 - $35,000 |
| Prosper | 560 | 8.99% - 35.99% | 24 to 60 months | $2,000 - $50,000 |
| Upgrade | 580 | 7.99% - 35.99% (with discounts) | 24 to 84 months | $1,000 - $50,000 |
ATV financing is affordable if you have a decent credit score. Even if your credit isn't the best, you don't have to make a bad choice if you want to finance a powersport vehicle, as several lenders are offering bad credit financing for ATV.
Plan your purchase, make sure you can afford the payments along with your other bills, and always make your payments on time.
The price of a four-wheeler can vary a lot depending on many different things. An ATV will cost between $5,000 and $15,000 on average. A new ATV costs about $8,250 on average, based on new models from top manufacturers.
Traditional ATV loans are available from banks and credit unions for set periods of time, usually between 3 and 6 years, with fixed annual percentage rates. The APR will depend on your credit score, the length of the loan, how much the ATV costs, and who is paying for the loan.
Many ATV loans require you to have a credit score of at least 640. But people with scores as low as 600 can still get loans.
For ATV loans, the average rates for new car loans are 3.51% and the average rates for used car loans are 5.38%. It’s always better to use an online calculator to get accurate results.
In short, NO. A pre-approval involves a "soft inquiry," which doesn't affect your credit score. The soft inquiry is just a way for lenders to see if you might be eligible for their credit card offer.