Anyone who’s ridden an all-terrain vehicle (ATV) knows that there’s nothing like tearing through trails on a quad. But if you don’t the cash to buy a new 4X4 lying around, you’re going to need some financing.
ATV loans can run from 0% APR to over 25% APR. Since ATVs are often less expensive than other larger vehicles, you typically don’t have to make a down payment, so APR is the main cost you should be concerned with.
The easiest way to compare the cost of an ATV loan is to look at the APR, which is the interest and fees expressed as a percentage. Here’s how some of the top brands compare in June 2019:
| Brand | APR |
|---|---|
| Yamaha | 15.99% – 23.99% plus offer |
| Polaris | 0% promotional APR for the first six months, 16.24% – 25.24% after |
| Honda | Starting at 0.99% |
| Credit type | Credit score | Typical APR |
|---|---|---|
| Very Good | 740–850 | 2%–11% |
| Good | 670–739 | 12%–15% |
| Fair | 580–669 | 15%–28% |
| Poor | 0–579 | 29%+ |
Lower credit can also affect which loan terms you qualify for. Generally, you’ll need to have at least good credit to qualify for longer terms. Other factors like your debt-to-income ratio can also factor into your rate.
Fair and poor credit applicants can sometimes find long-term options, but with high interest rates that can make the loan incredibly expensive if you don’t pay it off early.
Got a vehicle in mind? Use this calculator to figure out how much your monthly repayment will cost with different loan terms and rates.
Eligibility can vary, depending on the lender and type of vehicle you’re interested in. However, you typically need to meet the following requirements to qualify:
You can generally find ATV financing options for all credit score ranges. However, you’ll generally get a better deal if your credit score is above 670 — what most lenders consider to be “good credit.” You’ll have even more options if your score is 740 or higher.
Getting financing directly from your ATV dealer or manufacturer is a popular way to pay for a new vehicle. Here, you’re required to use your vehicle as collateral.
Some dealers offer financing directly from the manufacturer, which allows them to offer promotions like rebates or 0% interest for the first six months or a year on credit cards — often strategies for moving some of the less-popular models.
Many dealers offer financing through a third-party lender — like a bank or credit union. These can sometimes be less costly than manufacturer financing, but you might have a difficult time qualifying for a competitive loan if you don’t have excellent credit.
Some offer “buy here pay here” options for bad-credit borrowers, which don’t involve a credit check but can come with higher rates and hidden fees or unnecessary add-ons.
Don’t want to risk losing your vehicle? Taking out an unsecured personal loan is another option. You can apply for these online or through your local bank or credit union. Online lenders tend to get you your funds faster and don’t have strict credit requirements like many banks.
Some lenders have restrictions on how you can use your funds, though many don’t have any policies about recreational vehicles. Like with dealership financing, you’ll need good or excellent credit and a steady income to get approved for the most competitive rates and higher amounts.
Some personal loan providers like Capital One and USAA also offer ATV financing, which works more like borrowing from a dealership. Here, you’ll need to know the make and model of your vehicle, as well as the estimated cost. These loans tend to be secured.
Before you buy a new ATV, consider whether you want a new or used vehicle. Both come with benefits and drawbacks.
You can find a competitive deal by comparing these four main factors:
Most in-house ATV loans come with 36- to 60-month terms. Unsecured personal loans often come with a wider range of terms from 12 to 72 months.
A longer term can give you lower monthly repayments, but you’ll end up paying more in interest. A shorter term might save you on your total loan cost, but it’ll up your monthly repayments. To get the best of both worlds, use our calculator to find the shortest term length you can afford.
You can finance your ATV through a lender or manufacturer. Dealerships often offer a combination of lender and manufacturer financing with options that include:
Want to make sure your lender is legit? Watch out for these red flags when looking for ATV financing:
Check out how these top ATV brands compare.
| Brand | Cost for 2017–2018 models | Series | Types of financing available |
|---|---|---|---|
| Yamaha | $2,099–$10,899 | Raptor, YFZ, Grizzly, Kodiak | Yamaha credit card |
| Textron | $2,999–$9,999 | Alterra, Mudpro | Installment loans through Sheffield Financial and Roadrunner Financial, Yard Card credit card |
| Polaris | $2,099–$27,499 | Polaris ACE, General, Ranger, RZR, Scrambler, Sportsman, Youth | Installment loans through Sheffield Financial, Synchrony Financial and Performance Finance; Polaris Visa Card credit card |
| Honda | $3,049–$16,699 | FourTrax, TRX, Pioneer | Term loans through Honda Financial Services, Honda Powersports credit card |
| Arctic Cat | $2,999–$12,999 | Alterra, 150, DVX, XT, Mudpro, 500, VLX, XC, TBX | Term loans through Sheffield Financial, Freedomroad Financial and Roadrunner Financial |
You can, but it won’t be cheap. That’s because lenders typically consider customers with bad credit to be high-risk borrowers. Some have credit cut-offs, meaning that you won’t be able to qualify. If you do qualify, expect a rate around 20% or higher.
Many dealerships for top manufacturers offer financing for lower-credit customers through Roadrunner Financial. These typically come with APRs ranging from 2.9% to 20.9% — competitive for that credit range — but require a down payment of up to 20%. Terms range between 6 and 72 months.
If you’ve had trouble getting approved in the past, it might be tempting to go with a lender that promises no credit check. However, at best these can be highly expensive loans, and at worst, scams.
Between in-house financing and personal loans, you’ve got lots of options to choose from when it comes to paying for a new or used ATV. Dealership financing might be easier, but you have less options to explore — and you could find more competitive rates elsewhere.
Get started on your search by checking out our personal loans guide to learn more about how they work and compare lenders.
Image Source: Shutterstock
Should you lease or buy your next car? Laura Adams breaks down your options.
Is leasing or buying the best option for your next vehicle purchase?
Upstart is now offering auto loan refinancing.
Car loans for borrowers who may not qualify for traditional financing.
This young bank works with dealerships to get you financing.
9 requirements most lenders look for in a car loan applicant.
Could you be eligible for a low APR car loan from this well-known credit union?
Take to the road with an auto loan from a lender that’s dedicated to serving military members and their families.
If you’re in the market for a car don’t miss out on this guide to buy a car, get all the info you need and a range of loans to help you get into your car sooner.
Want to sell your car and pay off your car loan? Here’s what you need to know before you put your vehicle up for sale.
we currently have an atv loan that we have been paying on for over a year now, we got into a serious financial bind and would like to know how much it would effect our credit scores to let it go back?
Hi Haleigh,
Thank you for reaching out to Finder.
What negatively affects your credit score is non-payment. If you are going to bring back the ATV to zero out the loan, it may help increase your score. You may however want to review your credit report and see what opportunities you could fix to get your score higher. Hope this helps!
Cheers,
Reggie