With the purchase price of an ATV being much less than the average street motorcycle there are more options for financing your ATV than when purchasing a motorcycle.
The goal of this article is to provide you a view of four popular types of ATV financing. Your success with each method will depend on if you have good or bad credit.
1. Manufacturer ATV Financing
It is likely that if you have spent any time looking at ATV magazines you have seen an advertisement or two highlighting atv financing from top brands like Honda, Kawasaki, Suzuki and Yamaha. Usually these advertisements have a very low minimum payment like $49. While the payment may look attractive you should consider if this is the best ATV loan for you.
In deciding if a manufacturer loan is best, you need to consider the terms. For instance, look at how long the promotional term lasts. If it is 24 months will you have enough to payoff your outstanding loan on the 25th month because making the $49 payment does not pay off the loan? If not your interest rate will increase to the standard rate of 17%-22% and your minimum payment will also increase.
If you have the cash to pay off your loan at the end of 24 months than the promotion may be a good thing for you, if not then you should probably opt for a fixed rate installment loan that is offered by most online lenders and has a fixed rate for a long term.
Manufacturer ATV financing is typically more suitable for those with good credit rather than bad credit applicants.
2. Online Atv Financing
With online ATV financing you will get fixed rate ATV financing for a specific term. These loans are normally called personal loans meaning that they can be used for a variety of personal reasons such as buying an ATV, furniture, home improvements and a variety of other things. Terms on ATV personal loans will normally be up to 60 months and for excellent credit rates can be as low as the 5% – 8% range. Bad credit applicants can also get approved for online personal ATV loans, but the interest rate may be a bit higher.
3. Credit Card ATV Financing
If you are looking for a short term loan for your ATV purchase, a credit card may be a good option if it has a good promotion. For instance some Visa, Mastercard and discover cards offer 12 months no interest for new accounts. If you can afford to pay off your ATV purchase at the end of 12 months this could be a great option for you to use.
4. Hybrid Atv Financing
The hybrid Atv financing method typically uses a combination of financing options. One popular method is to use a short term manufacturer financing promotion and then when the promotion period ends you transfer your loan to another promotion on a Visa, Mastercard or Discover card.
For instance, you could get Honda Financing for 24 months on a Honda promotion and then transfer that loan to a Discover card promotion and get 0% interest for 12 month.
Hybrid Atv Financing is a bit complicated and requires some planning. It is also a bit risky because you are betting that companies will be running the same promotion in 24 months that they are today.
This type of financing is typically not recommended for those with poor credit or that are not very financially savvy.
In the end, the fact that the average ATV is less costly than a motorcycle will allow you more options to finance your purchase. You just have to think creatively and look at all the offers in the market for financing everyday purchases.