If you enjoy spending time in the wilderness and woody trails, you may be one of many who will benefit from the acquisition of an all-terrain vehicle. These vehicles, commonly known as ATVs, may have three or four wheels and will help you navigate uneven and muddy terrain with ease!
While buying an ATV may be exciting, these vehicles do not come cheap! With all the attention they are getting and because of the way they improve the experience of running on woody land, it is easy to understand why they have such an expensive price tag. If you are looking into purchasing this type of vehicle, this blog post will help you know your options when it comes to ATV financing.
ATV Financing Loans: How They Work and How to Get One
In many ways, getting a loan to finance buying an all-terrain vehicle is extremely similar to that of a regular car loan. The premise is that you take out an ATV loan, and then pay the amount back over a specific period, plus interest.
How Much Will an ATV Loan Cost?
The amount that one will pay when they take out an ATV loan will depend on a few key factors. The factors are namely: the price of the ATV, the interest rate, the loan duration, and the downpayment on the vehicle. These variable factors will be determined by the loan provider and the person buying the vehicle.
Types of ATV Loans
There are three general types of loans that may be used in order to make the purchase of an ATV. Depending on your need and the channels you have access to, these are the types of loans you may use to purchase your all-terrain vehicle.
1 – Loans from a Bank or Credit Union
Similar to regular car loans, your local bank or credit union may offer specific loans that may be offered to cover the costs to take out an ATV. Some lending institutions may offer ATV loans, and yet others may offer other loan products for this purpose. However, if the lending institution you inquire at offers you a personal loan for your ATV, take it with a grain of salt. Remember that personal loans tend to be much more expensive than typical vehicle loans. Car loans will use the vehicle being purchased as collateral, whereas personal loans will not have this option, which will make interest rates higher.
2 – Financing from a Dealer
You may also be able to get an ATV loan straight from the dealer where you plan to purchase your ATV. On many occasions, you may be able to nab a good deal for your loan, even one that will be processed fairly quickly. However, you need to be careful about ATV loans that are offered at dealerships for people with bad credit. These loans may tend to have interest rates that are much higher than normal.
3 – Credit Card
You may also be able to purchase an ATV using your credit card. If you are lucky, you may be able to land on a 0% interest deal. Paying your debt on time may enable you to buy an ATV without paying any interest. However, if you are not able to complete your payments, you may end up biting off more than you can chew in terms of interest payments.
Before taking out a loan for an ATV, being aware of all your options is the right first step to take. Working with a reliable lending institution will help you make the most informed choices when it comes to purchasing an ATV.
Canada Powersports Financing has the financial power to get you moving! We offer ATV financing and also finance snowmobiles, RVs, dirt bikes, jet skis, boats, 4-wheelers and more! Get in touch with us and get approved online in minutes!