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Financing an ATV 101

If you have always fantasized about cruising colorful desertscapes on an all-terrain vehicle or soaring down the coastal highway on a motorcycle, then why not make that dream a reality?

ATVs are a quick, efficient and fun way to get around in areas otherwise inaccessible by cars or other vehicles. They serve a number of purchases and can be a good investment for you and your family — if you can finance one correctly.

So before you make a purchase, here’s everything you need to know about ATV financing.

How do ATV loans work?

Much like financing a vehicle, you’ll get a one- to six-year loan term that requires you pay off the cost of your ATV in monthly installments, plus interest and any other fees. Always ask if your lender offers flexible payment plans. 

When it comes to cost, you’ll have to do a bit of math. So if you’re calculating the monthly cost for your ATV, factor in the following:

  • The total cost of the ATV
  • The monthly fixed-interest rate (loan calculators can help you crunch these numbers)
  • Divide those totals by the number of months you wish to finance

Keep in mind that — generally speaking — the higher your credit score, the lower the interest rates on your purchase will be. And even if you are more comfortable making the terms on a recreational vehicle for a long period of time, as long as you have a low fixed interest rate, you are still paying more on the premium than in interest. But there should never be a penalty for paying above the minimum amount due, which could help reduce the amount paid in interest.

How long can you finance an ATV?

Depending on your credit history and FICO score, financing an ATV doesn’t have to be extraordinarily expensive or time-consuming.

Banks and credit unions offer conventional ATV loans for fixed periods of time, typically between three to six years, with fixed annual percentage rates. The APR will depend on your credit score, the loan term, ATV cost and the organization that is financing the loan.

Some financial institutions may also offer revolving loans. These loans are often easier to qualify for and have lower monthly payments. However, a lower payment means it takes much longer to begin paying down the principal on the loan, which could result in a greater cost over time. And you should also keep in mind that a variable interest rate may mean your rate could go up or down during the loan period.

This is why most institutions say conventional loans tend to make better financial sense for ATV owners because the interest rate is locked in for the duration of their loan term and the owner knows when they’ll pay it off.

Can I bundle my insurance?

Keep in mind, though, financing doesn’t end with a loan. You should also prepare to insure your ATV in case anything happens to it. 

Vehicle protection plan coverage options are available on power sport vehicles that are ten years old or newer. You should check your preferred institution to determine if there are specific makes that they will insure.

Most financial institutions cover the following on your ATV:

  • Engine
  • Automatic transmission
  • Manual transmission
  • Drive axle assembly 
  • Brakes
  • Cooling 
  • Electrical
  • Fuel system
  • Fluids
  • Steering
  • Suspension
  • Touring equipment
  • Seals and gaskets

Talk to your preferred institution about financing and insurance for your future ATV. You’ll love the adventures you get to have with your new off-roading vehicle. 

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