Jayden, a resident of Ontario, wants to buy an ATV for summer vacation. After doing some research, he heads to a nearby dealership, where he finds a 2020 Kawasaki Brute Force 300 priced at $4,300.00. Jayden makes a 10% down payment of $430.00 and heads to his local bank to get an auto loan to cover the remaining $3,870.00 + $559.00 HST on the purchase price. Because Jayden has a solid credit history, he is approved for a $4,429.00 auto loan with competitive terms.
Cost of new car
Auto loan (term loan)
Interest rate (APR)
4.00% origination fee ($177.16)
$132.54 monthly or $61.11 biweekly
Total loan cost
$4,771.44 with monthly payments or $4,766.58 with biweekly payments
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.
How much do ATV loans cost?
Since ATVs are often less expensive than other larger vehicles, you typically don’t have to make a down payment. The interest charged on your loan is therefore your primary cost.
Promotional ATV rates by brand
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 are some examples of special offers from popular ATV manufacturers as of June 7, 2020:
1.99%-5.49% promotional rate depending on the length of the loan term, which can vary between 24 and 72 months. Loyalty program allows returning customers to get a 0.50% rate reduction on the purchase of new ATVs (conditions apply).
1.99%-3.99% promotional rate for 60 months or 4 months deferred financing followed by a 4.99% promotional rate for 60 months.
3.9% for 72 months or $45 per week; 4.9% for 72 months or $43 per week.
ATV loan rates by credit score
The table below shows what type of APRs may be offered by lenders relative to different credit scores. Note that the actual APR you’re offered may differ – this is just a representative example.
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.
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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:
Regular income. You generally need to earn enough to comfortably meet your monthly repayments.
Age of majority. The minimum age to take out a loan is either 18 or 19 depending on the province or territory in which you live.
Canadian resident. You’ll likely need to provide proof that you reside in Canada (such as a utility bill or bank statement with your name and address on it). You might have to find a personal loan with a cosigner if you can’t satisfy this requirement.
What’s the minimum credit score for an ATV loan?
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 660 — what most lenders consider to be “good credit.” You’ll have even more options if your score is 725 or higher.
How to finance an ATV with a dealer or manufacturer
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.
1. Manufacturer financing
Some dealers offer financing directly from the manufacturer, which allows them to offer promotions like cash rebates or 1.99% interest for the first 6-12 months on credit cards — often strategies for moving less-popular models.
2. Third-party financing through a dealership
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.
How to finance an ATV with an outside lender
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.
1. Personal loans
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.
2. Bad credit financing through private lenders
Certain lenders work specifically with borrowers who have bad credit. However, these loans usually come with higher rates to offset some of the riskiness of the loan.
Used vs. new ATVs
Before you buy a new ATV, consider whether you want a new or used vehicle. Both come with benefits and drawbacks.
New ATVs can be more expensive, but don’t require as much upkeep in the beginning. They can come with lower APRs when you finance, and you don’t risk having hidden damaged parts that could set you back. However, you could end up having to pay for major repairs on an already-expensive vehicle if it gets totaled.
Used ATVs are generally much cheaper. Rather than paying thousands of dollars, it’s possible to find used ATVs for around $3000. While rates might be higher, you’ll still end up paying less — or you might not even need to get a loan to cover the upfront cost.
This means that if you damage your vehicle, it’s less of a big deal. It could also be a good option for first-timers who don’t know how much they’re actually going to take it out. But there’s a chance you’ll need to replace some parts and spend some serious time in the garage.
You can find a competitive deal by comparing these four main factors:
Eligibility. Write off any options you don’t meet the basic requirements for.
APR. A lower APR means you’ll pay a smaller percentage of the balance in interest and fees.
Term length. Find the shortest loan term you can afford to lower the overall cost without struggling with monthly repayments.
Loan amounts. Most in-house financing options cover up to 100% of the value of your vehicle, while outside lenders might have minimum and maximum loan amounts.
How to choose the most favorable loan term
Most in-house ATV loans come with 24- to 72-month terms. Unsecured personal loans often come with a wider range of terms from 6 to 60 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.
4 tips for comparing ATV loans
Make sure you’re eligible first. While many dealers have options for all credit types, there’s a chance your credit score or income type just doesn’t fit the bill. Ask about eligibility requirements before anything else so you don’t waste your time.
Request quotes. Many manufacturers only advertise the lowest possible rate on their websites, which only the most creditworthy borrowers can actually qualify for. But many manufacturers and online lenders allow you to apply to pre-qualify to get an estimate of the rates and loan amounts you can expect with no effect on your credit score.
Compare APRs with the same term lengths. The longer your loan term, the more you pay in interest. That 1.9% APR might not be as much of a savings as you thought if it comes with a longer term than higher-APR shorter-term offers.
Ask questions. Personal loans aren’t as regulated as, say credit cards, so you might not be able to find all of the information online. Go directly to the source if you have any questions by calling the customer service line, shooting an email or using your lender’s live chat feature to get answers to any area that’s unclear.
You can finance your ATV through a lender or manufacturer. Dealerships often offer a combination of lender and manufacturer financing with options that include:
Secured loans. A term loan that uses your vehicle as collateral, which you pay off over 1-5 years.
Unsecured loans. A term loan with 1- 5-year terms that doesn’t require collateral. You’ll need stronger credit to qualify than a secured loan, but you don’t risk losing your car.
Manufacturer credit cards. Some manufacturers offer credit cards, often with low promotional APRs for the first 6 months or more.
Warning signs to watch out for
Want to make sure your lender is legit? Watch out for these red flags when looking for ATV financing:
Guarantees. No lender can guarantee that you’ll get approved for a loan. If you come across one that does, there’s a chance it’s a scam.
No credit check loans. Often these loans come with even higher rates than you would get if you’d had a credit check.
Upfront payments. Most ATV loans generally don’t come with a down payment. Any lender asking for money before you get your funds could be running a scam, especially if they’re in the form of gift cards or money orders.
Top ATV brands to consider
Check out how these top ATV brands compare.
Cost for 2019-2020 models
Types of financing available
Raptor, YFZ, Grizzly, Kodiak
Term loan through Yamaha Financial Services (balloon payment option available)
Financing available from authorized Arctic Cat dealers (options vary)
General, Ranger, RZR, Sportsman ATV
Installment loans through Sheffield Financial, Synchrony Financial, TD Auto Finance and Performance Finance.
Polaris Visa Card also available.
Rubicon, Foreman, TRX
Term loans through Honda Financial Services
Term loans through TD Auto Finance
3 common types of ATVs
Sports ATV. These quads are designed for fun. They’re faster, lighter and can absorb shock better than their counterparts. They’re also typically less expensive.
Utility ATV. When you’re hauling cargo through rough terrain, a utility ATV is what you’re looking for. It can handle a heavier load and is typically more stable than a sports ATV.
Side-by-side. Also known as SxS or UTV, these vehicles let you bring another person or carry a heavier load than a utility ATV.
Yes, 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 of around 20% or higher.
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.
Frequently asked questions
It’s possible. But rather than looking into no credit check loans, you might want to apply with a cosigner. Some lenders allow you to apply with a cosigner. You might also want to check out your cosigner-friendly personal loan options.
You can. ATV wheels can set you back several hundred dollars a piece, which adds up. You can typically get financing either through the manufacturer or by taking out a personal loan.
MSRP stands for manufacturer’s suggested retail price. You’ve probably seen MSRP when checking out models on a manufacturer’s site. It means that dealerships might charge a different price, though you can expect something in that ballpark.
It depends on your loan term. These can run anywhere from 12 to 72 months — or 1 to 6 years. With some lenders, you might be able to save on interest by paying off your loan early as long as there aren’t any prepayment penalties and you loan doesn’t come with pre-computed interest.
Anna Serio is a trusted loans expert who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
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