Tips for Financing an ATV

When you’re eager to hit the trails on an off-road adventure, you shouldn’t be deterred by the upfront cost of buying a quad. If you’ve been shying away from shopping for the ATV of your dreams because of financial constraints, we’re here to help. At Gina’s Motorsports of Monee, we understand the need for financing options when you are making an investment in a new ride.

Here are our best tips for financing your ATV, so that you can enjoy an exciting time without having the added stress of worrying about finances. When you’re ready to check out our wide selection of ATVs for sale, get in touch with us at our dealership in Monee, IL, to know more about all the great deals we have for you.

Types of Loans

Financing an ATV is just like financing a new car. You borrow money to purchase your new four-wheeler from a lender, and then pay back that money over time, plus interest. The interest rates offered will vary widely and will depend upon the lender, the loan amount, the borrower’s income and credit score, and the type of loan. When it comes to choosing a loan for an ATV, you have a few different options.

Secured Loans

Secured loans have high limits, long repayment terms, and lower overall rates. However, the financing company will use your four-wheeler as collateral, which means that the vehicle can be repossessed if you default on your loan. If you do not qualify for an unsecured loan or need more money, then a secured loan is your best option.

Unsecured Loans

Unsecured loans have no collateral, which means that their terms are shorter and their rates are higher. While you aren’t likely to lose the vehicle itself if you default on an unsecured loan, you may end up with financial consequences, like penalties, lowered credit scores, or a lawsuit.

Credit Cards

Yet another option for financing an ATV is to make the purchase using a credit card. Credit card interest rates can be as high as 27%. This is much higher than any other type of loan, so you would end up paying a lot more in interest. However, many credit cards have special sign-up offers that give you a 0% interest rate on purchases you make in the first 12 or 18 months. If you buy an ATV with a credit card that offers 0% interest and then you make your monthly payments on time, you’ll pay off the balance within the allotted period and won’t have to pay any interest.

Where to Get a Loan?

You have several options when it comes time to acquiring an ATV loan, from banks to credit unions to automobile dealers. In fact, some dealerships, like Gina’s Motorsports of Monee, have their own financing departments to help you get the money you need to fund your purchase.

Banks

You can obtain a secured loan for an ATV from any bank, even if you aren’t a customer of that bank. However, you will get an interest rate discount if you choose a lender that you already bank with. Loans may be from anywhere from a few thousand dollars to over $100,000, with repayment terms between one year to several years. Rates will vary depending on the borrower’s credit and the amount of the loan itself.

Credit Unions

A nonprofit lender, such as a credit union, is a good option if you don’t have the best credit score. However, these financial institutions will offer secured loans by using your ATV as collateral. You can probably get a lower rate through a credit union with a higher total loan amount.

Dealerships

Many ATV dealerships offer options for financing a new or used quad. The benefit of financing your ATV through a dealer is that they may be able to offer you promotional deals, like no interest for a certain amount of time. Plus, getting a loan through a dealership can be a much faster process than applying for a loan through a bank or credit union. These are also secured loans and require a down payment of up to 20% of the purchase price.

Important Considerations

When opting for a loan, you’ll want to make sure that you can afford the monthly payments. You’ll need to do some math to determine how much these payments might be for the ATV you want, as well as how much interest will accrue over time. 

To avoid going into debt, an ATV loan payment generally should not be more than 20% of your total income. Remember that the costs of ownership are more than just the vehicle itself. You’ll want to factor in fuel, registration, insurance, maintenance, repairs, and any necessary gear.

We hope you found this ATV financing guide useful. If you have any questions or want assistance with various financing options, get in touch with us at Gina’s Motorsports of Monee. We also offer a wide range of ATVs for sale and we will be happy to help you choose a model that’s a perfect fit for your needs and budget. You’ll find us in Monee, IL, where we proudly serve all those in Chicago and Kankakee County.