All-terrain vehicles, also known as ATVs, provide the ultimate way to get around. You can take your off-road vehicle for an epic adventure through the mountains or a forest. You can reach speeds as high as 60 to 65 mph or race your friends on an out-of-the-way ATV track. Whether you prefer a three-wheeler or four-wheeler, as long as you’re safe, you’re always in for a good time.
While you can often rent an ATV, many people love buying their own, so it’s ready and waiting whenever they’re up for an adventure. Unfortunately, the high price of ATVs means that not everyone can afford them — at least not if they have to pay all at once.
How do ATV loans work?
ATV financing works much like financing an RV or a car. You can finance an ATV with a loan term of one to six years and pay off the cost of your ATV with affordable monthly payments plus interest. The exact specifics of your loan will depend on what type of ATV financing you choose.
Your ATV financing options include personal loans, credit cards, and retailer financing, which we will cover below. On top of that, you also have the option to apply for a loan at a bank or credit union.
How much do ATVs cost?
ATV loans provide a way to finance an ATV and pay it off over several months or years. But, before we dive into loans for ATVs, it’s crucial to talk about how much these recreational vehicles usually cost.
You may have done some research already, but if not, these stats can provide you with a general idea of how much you may need to borrow.
ATV Retail Prices
Here are some ATVs along with their retail price in 2022:
- Apollo Sniper 125cc ATV: $1,069.95
- TaoTao 250 Rhino Adult Utility ATV Blue: $1,669.95
- Monster X 550cc ATV Four-Wheeler 4 x 4 Utility ATV: $4,979.95
- 700cc 2 Speed 4×4 Fully Automatic ATV: $7,299.95
- Crew 750 UTV Utility Vehicle 4×4: $12,499.95
As you can see, ATV pricing is a lot like pricing for automobiles — all over the place. Of course, you can buy larger, fully-loaded ATVs with all the bells and whistles. But, you can also buy very basic models with fewer upgrades and less room.
ATVs with more power and the potential for higher speeds also tend to cost more, so make sure to think long and hard about what you want in an ATV and how much you want to spend.
ATV Financing Options
Once you know more about the type of ATV you want and your budget, it makes sense to shop around for ATV financing ahead of time. Here are some of the main ATV loan options, along with some details on their pros and cons and who they’re best for.
Personal loans are probably the most popular option for ATV financing because they are flexible and tend to come with affordable interest rates.
Most lenders let you borrow up to $35,000 with repayment timelines ranging from 12 months to 60 months. While your APR will depend on your credit history, it comes with a fixed rate you can depend on, a fixed repayment schedule, and a fixed monthly payment.
- Enticing rates for individuals with a good or excellent credit score.
- With a fixed monthly payment and fixed repayment schedule, you’ll know exactly how much you owe each month as well as when your ATV will be paid off.
- Since they are unsecured, your ATV won’t be repossessed if you stop making monthly payments.
- It’s easy to shop around and compare interest rates and loan terms online.
- If you have fair or poor credit, your personal loan may not come with a competitive interest rate.
- Some loans come with fees like an origination fee or application fee, although many lenders offer loans without any fees.
Personal Loans are Best For:
- Consumers who want a fixed payment and repayment schedule
- People with good credit history who can qualify for the best interest rates
- Anyone who wants to get their financing in place before they shop for an ATV
Credit cards offer a financing alternative, although they could be more expensive than other options since the average credit card APR is currently over 17%. Since some credit cards offer 0% APR on purchases for a limited time, however, you may be able to use a credit card as a free short-term loan.
- If you can qualify for a credit card that offers zero interest on purchases, you could pay your ATV off without any interest for up to 15 months.
- Some credit cards offer low introductory rates.
- Credit cards are easy to research and apply for online.
- Outside of cards that offer 0% APR for a limited time, most credit cards come with higher interest rates than a personal loan.
- Even if you do get 0% APR for a limited time, your interest rate will reset once the introductory period is over.
- Credit cards only require you to make a minimum payment, and this could leave you paying off your ATV for a long time if you don’t have the discipline to pay more.
Credit Cards are Best For:
- Anyone who could qualify for a card that offers 0% APR on purchases and pay their ATV off during their introductory offer
- Someone who has a credit card with a low APR
- People who want some flexibility in terms of how much they pay toward their ATV loan each month
Some retailers offer special loans or credit cards you can use to finance your ATV. These options are typically based on the manufacturer you buy an ATV from and special promotions they have in place. For example, at the time of this writing, Yamaha is currently offering 0% APR for six months. However, your interest rate will reset between 15.99% and 23.99% after your offer ends.
Polaris also offers a Visa credit card that comes with 0% APR for six months *this offer has expired*, 2x points on Polaris and gas station purchases, and 1x points on everything else you buy. Once again, however, the interest rate surges considerably higher once the six months are over.
- Retailer financing is convenient to use when you apply for financing at the ATV dealership.
- You may be able to get 0% APR for a limited time.
- Some dealers may work with several lenders, giving you the option to shop around for the best deal.
- While you may avoid interest for a few months, retailer financing tends to come with high rates.
- If you rely on a certain type of retailer financing, this may prevent you from shopping among other ATV brands for a better deal.
- If you use retailer financing to pay for your ATV, the ATV is considered collateral. This means it could be repossessed if you stop making payments.
Retailer Financing is Best For:
- Someone who wants to apply for ATV financing while they shop
- Anyone who doesn’t mind the fact their ATV will be used as collateral for their loan
- People who may be able to benefit from special promotions their dealership offers if they use retailer financing
Bad Credit ATV Loans
Is it possible to buy an ATV with no credit or bad credit? Absolutely. These loans come with higher rates and may require a down payment. However, it’s still possible to get a personal loan or ATV financing through a retailer, even with a bad credit score.
The right ATV loan could help you responsibly finance your new recreational vehicle without having to wait until you have the entire purchase price saved in cash. Before you borrow money, however, make sure to compare loan options and read the fine print.
While an ATV loan could help you get the ATV you want within a matter of days, you may be making monthly payments for years. So make sure you understand how your loan works before you commit, and you’ll be glad you did.