Ask the Editors: Is My Credit Score High Enough To Finance An ATV?
Dear ATVC:
I live in Ontario and currently hold a credit score of 649. Will this be a strong enough score to successfully finance a new ATV? I have no credit cards and only have a truck payment as debt with a good paying, solid job.
Bowmadness87
As much as we’d like to tell you credit score alone is the universal criteria used in determining whether or not you will qualify for financing, the truth of the matter is there is a bit more criteria evaluated and a few more options than most people realize in making it happen.
For starters, realize that lenders view ATVs as slightly risky investments because of the likelihood of being stolen or crashed. Additionally, and like shows like Southbeach Towing demonstrate, a lender can attempt to repossess a car that isn’t being paid upon much easier than it would be to get into a locked garage where most ATVs are stored. As a result, lending requirements are usually stricter with quads than they would be in applying for a car loan.
Even still, you have several options at your disposal:
Dealer Financing: Most ATV dealerships offer financing options directly to consumers. Interest rates will fluctuate depending on the applicant (credit history, score, debt to income ratio and so on). The good news with this option is most dealers have a quiver of lenders that they frequently work with and have the ability to shop for terms that meet your needs.
OEM Financing: OEMs (Original Equipment Manufacturers— Polaris, Suzuki etc.) usually have financing available to purchase new equipment. Again terms and interest rates will fluctuate based upon your credit history and financial standing but OEMs often offer promotions worth checking out.
Credit Card: If you have an existing credit card with enough available credit, it is possible to purchase a high ticket item such as an ATV using the plastic. The benefits to going this route of course include no credit checks, financing applications or pre-payment penalties. The downside is that interest rates will likely be much higher than what could be available through traditional financing.
Personal Loan: Your local banking institution or credit union may or may not provide loans for motorized recreational vehicles but they will likely have a personal loan option for good standing customers. Again interest rates may be higher than dedicated financing options but this is a viable option when all else fails.
Finally realize that when it comes to ATV financing in any capacity, it’s not often a yes or no affair so much as an opportunity to qualify under certain conditions. For example, a low credit score or unacceptable debt to income ratio may simply require a cosigner or a percentage of the total cost down payment be made initially to qualify.
