A Quick Guide to UTV Financing
Many people think that a new or gently-owned UTV is something that they don’t need or that they can’t afford, but they do and they can! Financing a UTV is a great way to ride while you pay, but you need to understand how credit works and what you can afford. Here are a few questions that you should ask yourself as you consider financing a new or pre-owned side-by-side or an ATV. To learn more, visit Sky Powersports Sanford in St. Charles, Missouri. We’re your off-roading headquarters in St. Louis and St. Peters, Missouri.
How Much Can You Spend?
Salesmen commonly ask prospective customers how much of a monthly payment that they can afford as a means to obfuscate the actual cost of a vehicle. They’re counting on you falling in love with a vehicle that’s out of your price range and then coming to your rescue with a creative financing solution. Keep a price in mind and stick with it. You’ll usually need to make a down payment of 10% to 20% of the vehicle's sale price. If you can come up with some extra money up front it can significantly impact your monthly payment and save you money on the interest that gets financed into the loan.
What’s Your Credit Score?
Be sure to check your credit report on an annual basis and have inaccuracies investigated. Most people have some rough spots in their credit, but there are ways to improve your credit to get a better interest rate. If you have a lower credit score, making your vehicle payments on time is a great way to demonstrate responsible use of credit and improve your score.
How Can I Get Favorable Loan Terms?
If your credit score is low, you might not qualify for some of the special financing deals that you hear advertised. In fact, you should prepare yourself for some serious “sticker shock” when you start reviewing some of your first loan offers. A motivated salesman will stop at nothing to help you qualify for financing, but a high interest rate ultimately means that you’ll pay a much higher overall price for the vehicle. You can negotiate better terms by securing your loan with collateral or by convincing a trusted family member to cosign, but be sure you know what you’re getting into. Your loan payment shouldn’t be more than 20% of your total income, and you’ll have much more fun riding a powersport vehicle that you can afford!
For more information, and to see our current inventory of new and pre-owned ATVs and UTVs for sale, visit Sky Powersports Sanford in St. Charles, Missouri serving St. Louis and St. Peters, Missouri.