Paying for a new all-terrain vehicle (ATV) can be an expensive proposition, and it can be difficult to arrange financing for such a purchase. While home and auto lenders are usually easy to find, prospective ATV buyers may need to look a little harder to find the loan they want. One of the easiest ways of finding an ATV loan is to ask the salesperson about financing. Many dealers will either arrange loans directly or point buyers in the right direction. In some cases the buyer may need to arrange the loan with his bank or a lending agency that specializes in this type of financing.
Once a buyer has decided on the ATV he wishes to purchase, he will need to figure out how he will pay for his new vehicle. In general, the easiest and quickest way to get an ATV loan is to arrange the loan through the dealership. The dealer is usually motivated to move merchandise and also may be willing to cut some off the price or help to arrange a lower interest rate. As with car dealerships, the buyer can typically apply for a loan at the dealership and be approved within a short period.
Some dealers offer what is known as credit card financing, which is essentially a credit card that works only at the ATV dealership. The card allows customers to finance vehicles and accessories but typically has higher interest rates than a regular loan. This type of credit also may negatively impact a customer’s overall credit score.
If the dealer does not offer financing, then the buyer will need to look elsewhere for his ATV loan. If the buyer has a checking or savings account with a local bank, he should check their lending policies on ATVs and other utility vehicles. Some customers may qualify for an unsecured personal loan that will cover the cost of the purchase without requiring an ongoing lien on the vehicle. The customer has a pre-existing financial relationship with the bank, so the bank may be more likely to lend him the money he needs for the purchase. If the buyer’s loan application is rejected by the bank, then he should get a copy of his credit report and look for mistakes or ways he can improve his credit score.
Some buyers may need to turn to specialized lenders to secure an ATV loan. There are several online lending agencies that serve the United States and elsewhere and will provide loans for buyers. Even buyers with bad credit may be able to secure a loan with a higher interest rate. Before applying for this type of loan, buyers should look for consumer reviews of these lenders and avoid those with many customer complaints.