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Here's how to finance your new off-road vehicle, whether you have good or bad credit.
You have several ways to get ATV financing. You can finance through the ATV manufacturer, finance through a dealer, apply directly with a bank or credit union, or go with an online lender. If you choose to finance through the manufacturer, bank or credit union, you will likely need good to excellent credit (660). On the other hand, many online lenders and dealers can finance borrowers with good or bad credit.
Below is a breakdown of each ATV financing option.
1. ATV loans from banks and credit unions
Banks and credit unions can offer ATV financing through powersport vehicle loans. They are a strong option if you have good to excellent credit (above 660).
Apply for ATV financing with a credit union
Key features of Coast Capital: A major credit union that can finance a wide range of vehicles, including ATVs. A membership is not required to get this loan.
How to apply: Apply online in as little as 10 minutes and get a response on the same business day to learn about your rates and terms.
Features of ATV financing from banks and credit unions
- Secured vs. unsecured. The loan may be unsecured or secured. If the loan is secured, then your ATV will act as collateral, and the lender can repossess it if you do not make your repayments. If it’s unsecured, then the loan has no collateral. Secured loans tend to have lower rates than unsecured loans.
- Fixed vs. variable rate. You might be able to choose between a fixed and variable rate. With a fixed rate, your payments are predictable because your interest rate stays the same throughout the loan term. With a variable rate, your interest rate will fluctuate with the markets, which can increase or decrease your payments.
- Loan term can be several years. As an example, Scotiabank offers loan terms up to 72 months for a powersport vehicle loan, while Coast Capital, one of the biggest credit unions in Canada, offers up to 84 months.
2. Personal loans for ATV financing
You can get personal loans from banks, credit unions and online lenders. If you have fair or bad credit (less than 660), then you will have a better chance of getting approved by an online lender than by banks or credit unions.
Compare personal loans from online lenders
Features of personal loans
- Secured vs. unsecured. Just like with powersport vehicle loans, personal loans can be secured (with collateral) or unsecured (no collateral). With a secured personal loan, the collateral can be assets you own, such as your investments or house.
- Fixed vs. variable rate. Banks and credit unions offer fixed and variable rates. Online lenders offer fixed rates.
- Loan term of up to 5 years. The loan term for a personal loan is usually up to 5 years, but some lenders can offer longer terms.
- Loan amount. The loan amount for a personal loan can range from $500 to $50,000.
3. ATV financing through a manufacturer or dealer
Getting financing through your ATV dealer or manufacturer is another lending solution.
- Manufacturer financing. Some ATV manufacturers offer financing through a third-party lender, such as a bank or credit union, and they can offer promotions like cash rebates or a low interest rate for a period of time. For example, Suzuki offers financing through TD with rates from 5.99% for 36 to 72 months (as of July 2021).
- ATV financing through a dealership. Dealers may partner with a third-party lender such as a bank, credit union or alternative lender to finance your ATV loan. You may or may not need a good credit score, depending on the third-party lender the dealer is partnered with.
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. Therefore, the interest charged on your loan is your primary cost. Since everyone’s financial circumstances are unique, there’s no magic number for everyone. Thankfully, once you have basic information about your loan, you can easily calculate the cost before proceeding with the ATV purchase.
ATV loan rates by credit score
The table below shows what type of annual percentage rate (APR) may be offered by lenders relative to different credit scores. APR is the combination of your interest rate and financing fees; it shows the true cost of your loan. Note that the actual APR you’re offered may differ – this is just a representative example.
|Credit type||Credit score||Possible APR|
|Excellent||760 to 900||0% to 3%|
|Very good||725 to 759||3% to 5%|
|Good||660 to 724||5% to 8%|
|Fair||560 to 659||8% to 12%|
|Poor||300 to 559||12%+|
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.
I have bad credit. Can I get ATV financing?
If you have bad credit (below 560), you can get financing directly from an online lender or through an ATV dealer who is partnered with a third-party lender that works with bad-credit borrowers. You may face higher interest rates because lenders see borrowers with bad credit as higher risk. Consider improving your credit score first before applying for an ATV loan.
How to qualify for an ATV loan
Eligibility can vary depending on the lender and type of vehicle you’re interested in. However, you typically need to meet the following criteria to qualify for ATV financing:
- Regular income. Steady, stable income from employment is generally preferred over irregular, seasonal, self-employment income.
- Age of majority. The minimum age to take out a loan is either 18 or 19 depending on the province or territory you live in.
- Canadian resident. Most lenders require that you be a resident of Canada with a valid, permanent Canadian address.
How to find a competitive deal
You can find a competitive deal by comparing these 4 main factors:
- Eligibility. Write off any options that you don’t meet the basic requirements for. Lenders will often list their minimum income or credit score requirements.
- APR. A lower APR means you’ll pay a smaller percentage of the balance in interest and fees.
- 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.
- Term length. Find the shortest loan term you can afford to lower the overall cost without struggling to make monthly repayments. Most in-house ATV loans come with terms from 24 to 72 months. Unsecured personal loans often come with 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 increase your monthly repayments. To get the best of both worlds, use our calculator to find the shortest term length you can afford.
ATV financing calculator
Use this calculator to figure out your monthly payments based on loan term, APR and loan amount.
ATV loan monthly payment calculatorCalculate how much you could expect to pay each month
|Loan terms (in years)|
Tips for comparing ATV loans
- Request quotes. Many manufacturers only advertise the lowest possible rate on their websites, which only the most creditworthy borrowers actually qualify for. Many manufacturers and online lenders allow you to pre-qualify for financing. This gives you an estimate of the rates and loan amounts you are eligible for without impacting your credit or receiving the loan just yet.
- Compare APRs with the same term lengths. The longer your loan term, the more you pay in interest. An APR of 1.9% might not be as favourable as you thought if it comes with a longer term when compared to a higher APR, shorter term offer.
- Ask questions. 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 anything that’s unclear.
What 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 be 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 compared to loans that require 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.
Representative example: Jayden buys a new ATV
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 ATV loan with competitive terms.
|Cost of new ATV||$4,300.00|
|Loan type||Auto loan (term loan)|
|Interest rate (APR)||4.90%|
|Loan term||3 years|
|Additional fees||4.00% origination fee ($177.16)|
|Payment||$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.
Common ATV types and brands
- Sports ATV. These quads are designed for fun. They’re faster, lighter and can absorb shock better than their counterparts. They’re typically less expensive too.
- Utility ATV. If 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 allow you to ride with another person or carry a heavier load.
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 $3,000. 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.
Top brands to consider
|Brand||Cost for 2021 models||Series|
|Polaris||$2,799 – $17,999||Outlaw 70 EFI, Sportsman 570 Ultimate Trail LE, Scrambler XP 1000 S|
|Honda||$3,199 – $12,099||Fourtrax Foreman Rubicon DCT EPS Deluxe, TRX 90X|
|Yamaha||$3,599 – $12,299||Kodiak 700, Grizzly EPS, Raptor 90|
Between in-house ATV financing and personal ATV loans, you’ve got lots of options to choose from. Dealership financing might be easier, but you have fewer 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 about ATV financing
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