How And Why To Finance A Powersports Vehicle
Powersports vehicles are powerful, compact machines that can be good for anything from running errands to exploring your favorite mud hole. But to get to the fun part, you’ll need to pay for the vehicle, and if your budget’s looking tight, financing can help you stretch it! We here at Moroney’s Motorsports want to help you get to the exciting bit as soon as possible, so we’ve put together some tips and information about powersports financing. If you have to know more, or you’re ready to browse through the powersports vehicles we have for sale, contact our store in New Windsor, New York, today!
Why Finance?
The easiest part of financing is figuring out why it’s a useful tool. Essentially, you’re looking at taking out a loan so that you can pay off a vehicle’s full price over time. The overall amount you pay might be slightly higher, but you’ll pay it in bite-sized chunks that don’t wipe out your savings account in one go. So long as you have steady and reliable income, financing just means you don’t have to save up for years to afford your ride.
Proper Budgeting
That said, you’ll need to crunch some numbers to figure out what you can afford even in these monthly installments. You’ll need enough money saved up for a significant down payment, and you’ll need to figure out what size of payments you can work with. Make sure to factor in extra costs like fuel, maintenance, gear, and other miscellaneous costs.
Qualifying
A powersports loan is no different than any other kind of loan. You’ll need the lender to approve your loan, which will mean having a solid credit score. Some powersports loans require a higher credit score than other types of loans, and there are a few other things the lender will want to know, including but not limited to:
- Your credit history
- Your debt-to-income ratio
- Your down payment amount
- Age of the powersports vehicle
- Price and value of said vehicle
- Trade-in information
Low Credit Score?
If your credit score isn’t stellar, don’t worry. There are still loans you can qualify for, including secured loans. These have lower credit score requirements, but will use the vehicle as collateral. If you default on payments, that means they can repossess the vehicle from you.
The Right Lender
You’ll want to hunt for the right lender for your needs. If you’re a member at a bank or credit union, they’ll likely grant you better rates and will be more lenient on credit scores than others. Do some research about organizations offering loans in your area and arrange a meeting to discuss your circumstances and options.
We hope this guide helps you get the right vehicle at the right price! If you have any questions, contact us at Moroney’s Motorsports. We proudly serve the people of Newburgh, New York—let us serve you today!