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If you’re a thrill or adrenaline seeker, the thought of owning your own ATV may sound appealing. However, an ATV can cost thousands of dollars, which most people don’t have. Thankfully, you can still own an ATV if you finance it. 

Types Of ATVs You Can Finance In Canada

There are several kinds of ATVs you can finance in Canada, including but not limited to:

  • Sports ATVs – These are some of the most popular and affordable ATVs. Designed for lighter, faster performance, you’ll often see quad or tricycle models that can carry small amounts of cargo and one or two passengers maximum.  
  • Side-by-Sides – Commonly referred to as an SxS or UTV (utility terrain vehicle), an SxS is a more versatile ATV with the capacity to hold more cargo or other passengers. Some UTVs also have roofs or roll cages for added protection. 
  • Utility ATVs – Similar to SxS vehicles, utility ATVs are built to transport heavier cargo and extra passengers. However, they’re normally more stable and can navigate tougher terrain. Some even have the lighter design of a sports ATV.

How To Finance An ATV In Canada? 

Most all-terrain-vehicles (ATVs) are cheaper than the average car but they can still cost thousands of dollars, especially when purchased new. So, if you’d prefer to use a payment plan, here are some of the primary ways to finance an ATV in Canada: 

Can You Finance An ATV Through A Dealership?

Many recreational vehicle dealerships offer ATV financing options. The loan is funded “in-house” (by the dealer) or by a third-party provider, like a partner bank, credit union or alternative lender. Loan conditions, interest rates and payment terms can vary according to the borrower’s credit, gross income and debt history.

When financing an ATV through a dealership, be sure to choose a legitimate business with a good reputation so you don’t end up buying a total lemon car.

Can You Finance An ATV Through A Manufacturer?

Recreational vehicle manufacturers may also work with third-party lenders to provide their own ATV financing plans. Some companies offer even better rates than a lot of financial institutions and online lenders. Once again, just make sure to do some prior research and select a brand that’s known for producing reliable vehicles.

Things to know about financing an ATV through a manufacturer:

  • Special Deals – Some ATV producers give away promotions to attract potential customers. These deals often feature lower rates (sometimes 0% APR for a limited period), cash rebates and longer terms of up to 72 – 84 months.
  • Warranties – A manufacturer’s warranty could be included with the price of your vehicle. Different kinds of warranties exist but most will cover the ATV (or certain parts of it) against factory defects or for a specific amount of years/kilometres.

Can You Finance An ATV Through A Bank? 

If you want to finance an ATV, you can ask your bank or credit union. Most offer financing for “powersport” or “leisure” vehicles. Financing through a bank can be ideal as they tend to offer better rates than alternative lenders, but you must meet their requirements to take advantage of these rates.

Other benefits of financing an ATV with a bank include: 

  • Fixed & Variable Interest Rates – Fixed rates are appealing because they don’t change during your loan term, so you know exactly how much you’ll pay upfront. However, variable rates go up and down with Canada’s prime rate, which means your payments can end up being lower, depending on the market at the time.
  • Longer Loan Terms – Banks and credit unions may offer terms of several years. Some let you pay your vehicle off over a maximum of 84 months.

Can You Finance An ATV With An Alternative Lender?

If you have bad credit or are unable to qualify with a bank or credit union, you can apply for ATV financing with an alternative lender. They tend to have flexible requirements, making it easier for those with bad credit to qualify. Other financial factors like income, debt, job stability and your overall financial health are taken into consideration instead. 

However, do note that these lenders typically charge much higher rates and fees which can greatly affect the cost of the loan. Be sure to read the terms and conditions of the loan before  signing to ensure you understand the costs. 

Things to consider when applying with an alternative lender:

  • Interest Rates – As mentioned alternative lenders tend to charge higher rates than banks, so be sure to calculate your cost prior to agreeing to the loan. 
  • Varying Loan Amounts & Terms – Depending on where you apply, a normal ATV loan can range anywhere from $500 to $50,000 and feature a payment term of around 5 years maximum.

Should You Finance A New Or Used ATV?

When researching ATVs, it’s good to check out new and used vehicles. That way, you can compare prices, financing options and other factors, like: 

Benefits And Drawbacks Of Financing A New ATV 

The best thing about a new ATV is that it’ll be at its peak performance and shouldn’t need maintenance or have hidden damages. Many dealerships and manufacturers also offer cheaper rates and promotions on newer models. 

On the other hand, a new ATV will probably come with a higher price tag than a used one. Moreover, if it gets damaged, repairs may be expensive. Additionally, new vehicles can depreciate rapidly in resale value as soon as you start driving them.

Benefits And Drawbacks Of Used ATVs

If price is an issue, you may want to finance a used ATV instead. Since many new ATVs lose value quickly, you might be able to find a recent second-hand model for a decent price. While interest rates are sometimes higher, you can potentially pay your loan off quicker. 

The biggest problem with financing used ATVs is that they can require maintenance sooner or have problems that you can’t see, which can add to the cost of your ATV.    

What Do You Need To Finance An ATV?

As with any vehicle, you’ll need to pass certain criteria to qualify for ATV financing. While every lender has different approval standards, typical requirements include: 

  • Stable Income – Primarily, lenders want to know you can make payments on time, along with any interest or fees. Some financiers may accept non-traditional income (seasonal, self-employment, etc.) but most prefer a full-time source. 
  • Canadian Residency – To get approved for ATV financing, you may also have to be a resident or citizen of Canada. In such a case, the lender will ask you for a piece of government photo ID, such as your passport or driver’s license.
  • Age Of Majority – You can’t legally qualify for any type of ATV financing until you’re at least the age of adulthood in your province or territory of residence, normally between 18 or 19 years old (depending on the region). 

The Cost Of Financing An ATV

Here’s an example of what you could pay for ATV financing in Canada:  

24 months36 months48 months 
Borrowed Amount$15,000$20,000$25,000
Interest Rate7.99% APR6.99% APR5.99% APR
Monthly Payment$678.34$617.45$587.01
Total Interest $1,280.18$2,228.22$3,176.53
Total Cost$16,280.18$22,228.22$28,176.53

Note: these pricing figures don’t include sales taxes, down payments, service fees or other factors that might otherwise affect the total cost of a typical ATV financing plan.

Why Should You Get An ATV Loan Quote?

Before you commit to ATV financing, it’s important to shop around and compare lenders, dealerships and manufacturers to find the best possible bargains. Thankfully, many lenders offer the chance to pre-qualify with a free quote over the phone, in person or online. Thankfully, pre-qualifying holds you to no obligations and without impact on your credit score.

Keep in mind that while a quote can give you an idea what an ATV financing plan costs, it may not be the actual sales price of the vehicle. The quote they give you will probably be a base offer that only applicants with fantastic credit and finances can qualify for.                

ATV Financing FAQs

What credit score do you need to finance an ATV?

Some ATV financing lenders check your credit when you apply. If you have a good credit score, ranging around 660 – 900 with a solid payment history, it should be easier for you to qualify for a larger loan. Additionally, you’re more likely to get a longer loan repayment plan with an interest rate of 0% – 8%.  However, if your score is within the ‘bad’ range of 300 – 600, you may only qualify for a small loan with a short term and a high interest rate of 12%+. Your application may even be denied by lenders who have tighter requirements, like banks and credit unions.

Can I finance my ATV wheels and tires?

Yes, depending on the type of ATV financing you get. For instance, some dealers or manufacturers will add winter and summer wheels/tires as part of your purchase. Alternatively, you can apply for a personal loan that’s big enough to cover all costs.   

Can I get an ATV loan with no credit check?

In Canada, it can be tough to find no-credit-check vehicle financing at a fair price. Since most ATVs are considered valuable assets, just like cars, lenders examine creditworthiness before approving or denying an application.   So, if you want ATV financing without a credit check, you might have to shop with bad credit lenders and dealers; who may charge higher rates.

What’s the difference between unsecured and secured Loans?

Unsecured loans don’t require collateral and usually come with higher rates to compensate for the risk which the lender is taking. Secured loans use the ATV as collateral and, although a lender can repossess the vehicle if you default, they often feature lower rates due to the added security.

Bottom Line  

Whether you’re looking for something sporty, comfortable, tough or spacious, rest assured that there are plenty of ATVs available for purchase or financing in almost every region. After all, Canada is home to many outdoor enthusiasts, which means the chances of finding an affordable new or used ATV near you should be pretty good. 

Bryan Daly avatar on Loans Canada
Bryan Daly

Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.

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