In this article, we’re focused on financing an ATV with a personal loan. But personal loans aren’t always the best choice for some, and other options do exist. Here’s what they are and how they’re different.
Personal loans
Best if you don’t want to make a down payment or want to borrow additional money to cover things like gear or a pull-behind.
Personal loans are disbursed as a lump sum of cash. This cash is sent to you, not the dealer or seller. Instead, you’ll use the money to pay for your ATV. You can also borrow above what your ATV costs to cover things like safety gear or a pull-behind trailer.
Many personal loan lenders require at least good credit (670+) to qualify and very good credit (740+) to get the best rates. That doesn’t mean you won’t qualify with a score lower than that (especially if you shop for bad credit ATV financing) but the loan might be hard to afford.
Credit scores aside, personal loans can be more expensive than manufacturer financing. That’s because personal loans don’t use your ATV as collateral while the other options do. In trade, you’ll get a huge benefit — no down payments.
| Pros | Cons |
No down payments Does not use your powersports vehicle as collateral, so no repossessions Quick approvals and simple process Can use funds for nearly anything | Can’t get special financing like 0% APR deals like you would with the manufacturer Might be tempted to spend the money on things not related to your ATV If you qualify with bad credit, rates will be high Can come with expensive fees, especially if you have bad credit |
Manufacturer financing
Best if you qualify for a special financing deal, like 0% APR, with your ATV’s manufacturer.
Manufacturer financing is when you get your loan from the company that makes your ATV, such as Kawasaki. This type of ATV financing works like an auto loan. You might need to make a down payment, and your ATV serves as collateral. The manufacturer can repossess your ATV if you fall behind on payments.
If you’ve got your eye on an older model ATV, manufacturer financing might not work. You have to buy from an authorized dealer. That also means no private-party sales.
Manufacturers rarely disclose their credit score minimum. You’ll have to talk to the dealer or prequalify to see if you’re eligible.
| Pros | Cons |
0% APR deals, rebates and other incentives during sales events Can finance and purchase your ATV in one step May be able to add extended warranties and service packages | Need to buy from an authorized dealer Can repossess your ATV if you miss enough payments Might need to make a down payment
Often, special financing deals only apply to brand new ATVs |
Dealer financing
Best if you’d rather have the dealer do the loan shopping for you.
If you’re buying an ATV from a dealer or store, such as Tractor Supply Company, dealer financing might be an option. With this, the dealer will take your information and send it to their lender network, or the retailer will offer exclusive financing options, such as a store credit card. In a perfect world, the dealer will then show you the loan with the lowest rate (although that’s not guaranteed).
Dealer financing is convenient, but convenience can come at a cost. Keep an eye out for documentation (or “doc”) fees, admin fees and other extra charges.
| Pros | Cons |
Dealer handles most of the work Can gain access to lenders that only work with dealers, not buyers May be able to add extended warranties and service packages | There’s no guarantee that the dealer will pick the loan with the lowest rate Some dealers charge fees to cover the cost of doing your paperwork Have to use your ATV as collateral Might require a down payment |
