Did you know that the ATV and UTV market in North America was valued at $5.89 billion in 2019? Many people were buying ATVs and UTVS then, and they’re still buying them now, in 2020.

If you want to buy an ATV, it’s a great purchase, especially now when outdoor activities are so popular. However, you might be worried about the cost of the ATV or ATV financing options.

An ATV is an investment, one worth making, but it can still be pretty pricey.

Spending a lot of money on a home or a car is one thing because these are essential for everyday life. But is it worth it with an ATV?

With the right kind of ATV financing, you can afford an ATV, paying monthly payments that work for you. You can go out and enjoy your adventures on all kinds of terrain, without having to worry about how much you’re spending on it.

That’s why we’ve put together this guide for you. When you know all your options for ATV financing, you can choose which one is right for you—so you’ll be riding that ATV in no time! Read on to learn more.

What To Do Before Applying For A Loan

There are a few steps you should take before applying for a loan, which help you save money and understand which kind of loan is best for you. The first step is to negotiate the price down before even looking into the loan.

By doing this, you’ll pay less throughout your loan.

Next, you’ll need to see what your credit score is. If it isn’t very good, then you might have to get a loan from a lender who’s more friendly to low credit scores.

However, this can impact the loan itself in negative ways—so another option is to wait to buy your ATV until you’ve improved your credit score.

The Different Types of Loans Available

The different types of loans available for ATV finance are retailer financing and personal loans. These are usually installment loans, which you pay off over a period of time monthly.

It’s a lot like taking out a car or RV mortgage, where you pay off the loan over five to ten years, with the amount you pay depending on the length of the loan, your interest, and any downpayment you may have made.

Because of the interest, the total cost will be slightly more than if you were to pay outright for the RV.

Additionally, you can use your credit card to purchase the ATV. Let’s review how all these options work so that you can decide which one is best for you.

Retailer Financing

Because many ATV buyers need to get ATV financing, retailers selling ATVs simplify the process by offering their own loans. If you’ve got your eye on a specific ATV, it might be worth waiting since retailers often have special promotions where you can get a better deal.

Since we’re in the middle of the holidays, we’d recommend looking at Christmas sales and sales after the holidays. There might be additional sales as the weather warms up, too.

Pros of retailer financing include:

• If you want to get ATV financing while shopping
• Many retailers offer 0% APR financing at first, which means you’ll save money at first.
• Retailers might have different relationships with different lenders, such as banks or credit unions, which means you might have different options you can research to see what works best for you.

However, there are also some cons to retailer financing. These include the fact that, once the O% APR offer ends, you’re likely to have to pay higher rates than with other types of loans. Additionally, your ATV is collateral for your loan. This means that, if you can’t pay it off, you’ll lose your ATV.

Personal Loans

Personal loans are another way you can finance your ATV. These are a pretty popular choice because you have a lot of flexibility regarding the length of the loan, which means you can pay off an affordable amount every month.

Additionally, personal loans have a lower interest rate than retailer financing, which means you’ll save more money. Keep in mind; however, that bad credit and ATV financing are closely-linked.

Bad credit might give you a higher interest rate—or get you rejected for the loan altogether.

Generally speaking, with a personal loan, you can get up to $35,000, which means you’re likely to be able to cover the cost of your ATV.

Most loans last at least 12 months, and you’ll want to have them last at the longest 48 months since you don’t want to be paying it off forever.

The amount you pay and how much you’ve given, just like interest, is impacted by your credit score.

Pros of Getting a Personal Loan

There are several pros to getting a personal loan. As long as you have a good credit score, many of these pros will apply to your situation, which means this could be a good option for you.

• You’ll be paying the same amount every month because of fixed payments and a planned-out schedule, so you won’t have to stress every month about getting the payment paid.
• If you’ve got a good credit score, you’ll get a good deal on your loan, saving more than you would with another one.
• A personal loan is an unsecured loan, which means you haven’t put anything up for collateral—so if you fail to pay off the loan, it may have an impact on your credit score, or you may end up in court, but you won’t lose your ATV or anything else you’ve put up for collateral.
• There’s a huge variety of personal loans available from both credit unions and banks, so you’ll have a plethora of options regarding the amount loaned, how long you pay it off for, and the interest rate.

Just like with another kind of finance by ATV, there are cons to getting a personal loan. The biggest is that if you have bad credit, you’ll have to pay the loan off with a high-interest rate, which means you lose a lot of money both month-to-month and in the long-term.

You might also have to pay a loan fee, so if you’re really tight with money, some personal loans won’t be available to you. (Not all require this, just some.)

Credit Card Payment

While it’s not always wise to use a credit card for a huge payment, it might be worth it for you. If you don’t think a loan is for you, or if you’ve found a credit card that offers a low APR (many offer 0% for a while), then a credit card payment could work for financing your ATV purchase.

Pros of using a credit card for your ATV payment include:

• If you’re able to get a card that gives you 0% APR for a significant period (a year, for example), then you can pay off a large chunk of your ATV payment without any APR at all.
• If you get a new credit card, it may offer you lower rates when you’re first using it for this payment.
• Like personal loans, there are many credit cards available, so you can shop around to find the one that’s best for you.

There are some cons to using a credit card, however. These include the fact that most cards are going to have a higher APR than traditional loans, APR being high once you’ve run out of time to pay 0% APR, and that you might end up paying your debt off for a long time if you choose only to pay minimum payments on your card.

The Total Cost Consideration of ATV Financing

Before you choose to use retailer financing, a personal loan, or a credit card payment, there’s another element in how to get ATV financing that you have to consider. This is the total cost.

When you’re buying an ATV, there are additional costs other than the ATV purchase itself. There’s storage, maintenance, and buying the right gear for yourself so that you’re safe and comfortable while using it.

These can add up, and if you don’t make this consideration while choosing what ATV financing you want, you may end up paying more per month than you bargained for.

For this reason, when deciding on what kind of financing you’ll go for, you’ll also want to budget for these additional costs.

Have More Questions About Financing?

If you have more questions about ATV financing or about which credit cards, banks, or retailers are best for financing your ATV purchase, we can help you get the answers you need.

Here at Westshore Marine & Leisure, we’re experts in everything related to ATVs. To ask your questions and get the answers you need, visit our contact us page.