ATV Financing – How to Secure Good Or Bad Credit ATV Loans

It is no doubt that All Terrain Vehicles (ATVs) have grown to a substantial part of the powersports industry and even side by side utility vehicles are growing up to be a big part of the market.  These developments are great for those looking to finance an ATV or side by side since it opens up a whole world of financing.

With the average price of an ATV at roughly $6500 there are a variety of ways to get ATV financing.  Depending how you approach it, finding the right ATV financing can be an incredibly simple task or a nightmare.

Before you submit an application for an ATV loan, it is best to determine the type of financing that is the best for you. You should ask yourself; do I have good credit or bad credit?

If you have bad credit, it is best to concentrate your efforts on applying with ATV lenders that specialize in bad credit. If you have decent credit you can typically find no-hassle unsecured personal loans online, although your local bank or dealer may also provide some ATV finance options.

Normally, when choosing a new or used ATV loan your options will be split between installment financing and a private label credit card.

Installment financing is exactly like an automobile loan in that you sign a paper contact to pay a fixed monthly payment for a specified term such as 36 or 48 months. Your interest rate or payment can not change with an installment contract.  The two standard forms of installment loans for ATVs are unsecured personal loans and secured installment loans.

While both unsecured and secured installment loans are a great ways to finance an ATV, an unsecured personal loan may offer the most flexibility. First, with an unsecured personal loan it is easy to submit an application online in the comfort of your own home and get a response quickly. Additionally, since the ATV financing is unsecured the lender typically does not require a lien on your ATV as lenders do when you get a secured installment loan. Lastly, unsecured personal loans are available for good and bad credit applicants and usually offer flexible payment terms that can be structured to meet your budget with a competitive interest rate.

In the marketplace today, private label credit card financing is growing fast as a way to finance ATVs.  Many dealerships are offering credit card financing such as Yamaha, Honda, and Polaris star card financing.

Unlike an installment loan, with a private label credit card you will have the ability to add on accessories, parts, service and other items after your initial ATV purchase.  It operates like a normal credit card, but can only be used at participating motorcycle dealers.

With private label credit cards there are a couple items you should be aware of. First, beware that the interest rates are normally higher than installment loans over the life of the loan. Secondly your payment can double after the promotion period. The higher interest rates and payments can sometimes place you in a worse financial position than if you had chosen to get an unsecured or secured installment ATV loan.

Another disadvantage of a private-label credit card is that it shows on your credit bureau as a maxed out credit card.  This could lower your FICO credit score hurting your ability to get future credit.

If you have bad credit you will find that it is much harder to get approved for credit card specific financing, so you may want to limit your search to unsecured or secured personal loans.

One item to consider when you get ATV financing is add-on items and if you want to include ad-on items in your loan. Add-on items come in a variety of forms such as ATV accessories, pre-paid maintenance, extended protection and gap insurance.

Whether you decide on a personal installment loan or a private label credit card most lenders allow you to include add-on items in your loan amount. As a result, when submitting your ATV loan application, make sure you have considered these items in the purchase price of your ATV and the loan amount you are requesting.

One word of caution if you are going to purchase extended warranty protection or pre-paid maintenance. Make sure you understand all the terms of these add-on products.

For instance, you should determine if the extended warranty policy is transferable when you sell your ATV, or if you can use the extended warranty at other dealers in the event you move to a new town.

Regarding pre-paid maintenance, you should have a clear understanding of exactly what maintenance is covered in the policy and what happens if you move to a new town.  In addition, you should find out if the policy can be transferred if you choose to sell the ATV.

Getting new and used ATV financing for good or bad credit does not have to be a painful experience. The above strategies can be used to make your ATV buying experience much more hassle free and enjoyable.