The Best ATV Financing Options For You

Since ATVs (all terrain vehicles) are much cheaper than the average street bike motorcycle, lenders have many more options available for ATV financing. If you are a future ATV buyer, it is important you understand the impact of the different financing options. The goal of this article is to explain to you what you need to know about some of the most popular finance options available. One of the most popular options available for ATV loans is revolving credit card financing promotions.

These credit card promotions normally entice ATV buyers with very low payments such as $39 a month and sometimes low interest rates. You will see these promotions advertised in just about all the ATV magazines. While low payments and interest rates may seem like a win/win for most ATV buyers, it may not be the best option for all buyers. The problem lies in that the promotions on most revolving credit card ATV loans are for short terms such as 12 months or 24 months.

After the short promotion term the interest rate increases to as high as 22% and the payment will also significantly increase. Furthermore, if you as an ATV buyer purchase with a revolving credit card promotion and make the minimum payment, you will be paying very little towards your actual ATV. With these low payment promotions most of your minimum payment will go towards paying for the interest on your loan.

Typically, this is not a wise financial decision for you because as your ATV depreciates you will be left “upside down” meaning you owe more on your ATV loan than your ATV is actually worth. To sum it up, revolving credit card ATV financing has the ability to put you in a very bad financial position and sometimes can even drive some ATV owners into a bad credit or bankruptcy situation.

Another and better option for ATV financing is what is known in the industry as an installment (aka closed end loan, personal loan) loan. With an installment loan you agree with the lender upfront on all the terms of your loan and the lenders has very little freedom to change your terms. With installment ATV financing you will have a guaranteed interest rate, guaranteed payment and you can rest assure your ATV will be paid off at the end of your term.

This is just like the typical car loan and it’s a much safer alternative for the average ATV buyer. There are many ways to get installment ATV financing. First just about every dealer in the country has installment financing options available to you. However, be careful some dealers may try to push you into a revolving credit card ATV loan because they earn an incentive. If you find this happening simply tell the dealer you want to only finance with an installment loan.

Sometimes a better way to get an installment loan is to use online ATV lenders. With online lenders you can compare interest rates in the comfort of your own home. You will have no pressure and will get to choose the loan with the best interest rates and terms for you without worrying if a dealer is giving you the best option. Also, if you have bad credit, there are a variety of online ATV lenders willing to help you.

Overall, if you are in the market to finance a new or used ATV you will find installment ATV financing to be a much safer option for you than revolving credit card loan promotions. Manufacturers like Honda, Kawasaki, Yamaha, Suzuki, or Polaris want you to enjoy your ATV with financial peace of mind, so make sure you carefully evaluate your ATV financing options with online lenders and dealers.