How to Get a Powersports Loan in 5 Steps

Written by Carol Pope +1 more

Edited by Anna-Louise Jackson

If you’re dreaming of owning a motorcycle, ATV, jet ski or snowmobile, but you can’t afford to pay for it all at once, you might need a powersports loan. 

Many traditional auto loan lenders don’t offer powersports loans, but you might be able to get one from your dealer or manufacturer. Alternatively, you can use a personal loan to finance the purchase — obtaining a powersports loan like this is typically done entirely online and doesn’t require a down payment.

1. Check your credit score

You generally want good credit (a FICO Score of at least 670) before considering a powersports loan. You’re more likely to get the best rates if you have very good to excellent credit (a FICO Score of 740 or higher). 

It’s possible to get powersports and ATV financing with bad credit, but that doesn’t mean the rates will be affordable. Most legitimate powersports loan lenders cap their rates at 35.99% (which will still rack up a lot of interest over time). 

Check your credit score and track it over time for free with LendingTree Spring. If you’re not quite at 670, consider improving your credit score before applying for a powersports loan. If you can’t wait, you could get a friend or family member to go in on a joint loan with you.

2. Set your budget

It can be hard to put a price on happiness when you’re eyeing a new toy like a motorcycle. Tools like our motorcycle loan calculator can help you avoid a rocky road with your finances. Powersports vehicles aren’t usually a necessity, so it’s important to make sure that you can comfortably afford a monthly loan payment without neglecting your emergency fund.

You’ll also need to account for expenses like insurance, registration and safety gear. You can roll these purchases into your loan, but a bigger loan means more overall interest to pay off. Further, know that a longer loan term can give you a lower monthly payment, but you’ll pay more interest over time.

3. Shop around for a powersports loan

Shopping around for loan options is similar to shopping for new car insurance — you can’t know if a rate is competitive if you have nothing to compare it to. According to a LendingTree study, you can save up to $3,138 by shopping around for a personal loan instead of taking your first offer.

To avoid a ding to your credit, prequalify before formally applying for a loan. Prequalifying for a personal loan only requires a soft credit pull, so it won’t impact your score. Prequalification isn’t a guaranteed rate, but it can give you a good idea of what interest rates you can get once approved for a loan.

How to use LendingTree to find a powersports loan

4. Gather your documents

Some lenders are able to verify your information electronically, but most will ask you to upload documents when you apply. You can save time if you have the following ready: 

If you have a cosigner or co-borrower on the loan, that person will have to provide the same documentation as above.

5. Apply for your powersports loan

When you’ve compared offers and found the loan that works best for you, it’s time to apply. At this point, you’ll submit any required documents.Then, the lender runs a hard credit pull, which will likely drop your score by a few points.

You could get your money the same day that you’re approved, but one to three days is more common. It’s usually fastest to get the funds deposited directly into your checking account. 

Once you have the money, you’ll use it to pay for your powersports vehicle. However, you’ll also have to start paying off your loan in equal monthly payments, plus interest. Your first payment is usually due 30 to 45 days after you sign your documents, but check your payment schedule to be sure.