How powersports financing works for ATVs, UTVs, motorcycles and watercraft: dealer vs. bank and credit union loans, manufacturer promotional rates, a monthly payment table per $1,000, credit, down payments and trade-ins.
You can finance an ATV, UTV, motorcycle or watercraft through the dealership or through your own bank or credit union. Dealer financing gives you access to manufacturer promotional rates and lets you roll gear, accessories and a protection plan into one loan. A credit union can beat the dealer’s standard rate if you are a member with strong credit. Get a quote from both and take the lower total cost.
- Monthly payment: about $20 per $1,000 borrowed over 60 months at 7.99% APR. A $15,000 loan on those terms runs about $304 a month.
- Best rates: manufacturer promotions, offered on select new models for a limited time with approved credit.
- Credit: a higher score gets a lower rate, but lenders also finance first-time buyers and riders rebuilding credit, usually with a larger down payment.
- Fastest route: get pre-approved before you shop, so you know your budget on the lot.
Dealer Financing vs. Bank or Credit Union
| Dealer financing | Bank or credit union | |
|---|---|---|
| Where you apply | At the dealership, or online before you visit | At your bank, before you shop |
| Manufacturer promotional rates | Yes, on eligible new models | No |
| Lenders compared | Several, from one application | One |
| Gear, accessories, protection plan | Can usually go in the same loan | Often the vehicle only |
| Best for | Promotional rates, one-stop buying, credit that needs more than one lender to look at it | Members with strong credit and an existing relationship |
How does dealer financing work?
You fill out one application. The dealer’s finance manager sends it to its lender network, which includes the manufacturers’ own finance programs and powersports lenders, and brings back the terms each lender offers. The lender, not the dealer, decides approval and rate. At Edge, an approval applies to any unit in stock, new or used.
When does a bank or credit union win?
When no manufacturer promotion runs on the machine you want and you have strong credit with a credit union, its standard recreational loan rate can come in lower than a dealer lender’s. Get a written quote first, then ask the dealer to beat it.
What are manufacturer promotional rates?
Polaris, Can-Am, Honda, Kawasaki and other manufacturers lower the interest rate on select new models to help sell them. These offers can include reduced APR or 0% APR for a set term, change month to month, and require approved credit. Promotional rates usually apply to new units only. See current offers on our promotions page.
Monthly Payment per $1,000 Borrowed
Multiply the number for your rate and term by the thousands you plan to borrow. A $12,000 loan is 12 times the figure.
| APR | 36 months | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|---|
| 0% | $27.78 | $20.83 | $16.67 | $13.89 | $11.90 |
| 4.99% | $29.97 | $23.02 | $18.87 | $16.10 | $14.13 |
| 7.99% | $31.33 | $24.41 | $20.27 | $17.53 | $15.58 |
| 11.99% | $33.21 | $26.33 | $22.24 | $19.54 | $17.65 |
| 15.99% | $35.15 | $28.34 | $24.31 | $21.69 | $19.86 |
| 19.99% | $37.16 | $30.43 | $26.49 | $23.95 | $22.20 |
These rates are examples, not offers. Your rate and the terms available depend on the lender, your credit and the machine.
How much interest will I pay?
On a $15,000 loan over 60 months, 7.99% APR costs about $3,244 in interest. At 15.99%, the same loan costs about $6,881, more than twice as much. Stretching the 7.99% loan to 84 months drops the payment from about $304 to $234 a month but raises the interest to about $4,632. A shorter term costs less overall, and a better rate saves more than a longer term.
How Credit Affects Your Loan
Your credit score sets the rate you are offered more than anything else. Manufacturer promotional rates go to buyers with strong credit. With a thinner or damaged credit file, you can still get approved, but expect:
- A higher interest rate
- A larger down payment, often 10% to 20%
- Proof of income, such as recent pay stubs or tax returns if you are self-employed
Can I finance a side-by-side or ATV with bad credit?
Often, yes. Because the dealer sends one application to several lenders, a rider turned down by their own bank may still be approved by one of them. Choosing a lower-priced machine keeps the loan small, and on-time payments help rebuild your score.
Can a first-time buyer with no credit history get approved?
Yes, with some lenders. A down payment, steady income and a co-signer with established credit all improve your odds.
How to Finance Your Vehicle, Step by Step
- Set a monthly budget. Use the table above to turn a payment you can live with into a loan amount. Include insurance, which most lenders require for a financed machine.
- Get pre-approved. A pre-approval request tells you what you qualify for before you pick a machine, and the approval applies to anything in stock.
- Get a trade-in value. If you are trading a machine in, value your trade first. Its value comes off the price, which lowers the amount you finance.
- Gather your documents. Bring these to keep things moving:
- A valid driver’s license
- Proof of income (recent pay stubs, or tax returns if self-employed)
- Proof of residence (a utility bill, lease or mortgage statement)
- Insurance information for the new vehicle
- The title and registration for any trade-in
- Your down payment, if you are making one
- Compare the total cost. Look at the APR, the term and the total of all payments, not only the monthly figure.
- Sign and ride. Once you choose terms, the finance manager prepares the paperwork, and you can often take the machine home the same day.
Should I add gear and a protection plan to the loan?
You can usually roll a helmet, riding gear, accessories such as a plow or winch, and an extended protection plan into the same loan. It keeps everything in one payment, but you pay interest on those items for the full term. If you can pay cash for the small items, do.
Financing at Edge Performance Sports
We finance new and used ATVs, UTVs, motorcycles, snowmobiles and watercraft at both of our stores, in Ontario, Oregon and Mountain Home, Idaho. Every used unit we sell carries a 90-day powertrain warranty. Oregon has no sales tax. Idaho charges sales tax on the purchase, which you can pay up front or, with most lenders, include in the loan.
Get pre-approved or fill out a full credit application.
Frequently Asked Questions
What is the monthly payment on a $15,000 side-by-side?
About $304 a month over 60 months at 7.99% APR, $234 over 84 months at the same rate, or $250 over 60 months at a 0% promotional rate. Use the payment table above for other rates and terms.
How long can you finance an ATV or UTV?
Terms of 36 to 84 months are common, and some lenders go longer on larger loans. A longer term lowers the monthly payment but raises the total interest you pay.
Is it better to finance through the dealer or a credit union?
If a manufacturer promotional rate applies to the machine you want, the dealer usually wins. If not, a credit union can beat the dealer’s standard rate for members with strong credit. Get a written quote from your credit union and ask the dealer to beat it.
Do I need a down payment to finance a powersports vehicle?
Not always. Buyers with strong credit can sometimes finance with little or nothing down, especially during manufacturer promotions. With weaker credit, lenders often ask for 10% to 20% down.
Can I finance a used ATV, UTV or motorcycle?
Yes. Lenders finance used machines as well as new, though manufacturer promotional rates usually apply only to new units. Used rates are often a little higher.
Does a trade-in lower my loan?
Yes. The trade-in value comes off the purchase price, so you finance less. If you still owe money on the trade, the payoff is subtracted from its value first.
Can I pay off a powersports loan early?
Most powersports loans allow early payoff, which saves interest. Ask whether your loan has a prepayment penalty before you sign.