ATV Financing – Bank vs In-House Financing
If you’re looking to buy an ATV, you might need a little help when it comes to ATV financing.
But with multiple options available, it can be challenging to figure out which one is the best one for you.
If you’re not good at figuring out financing, all of the choices can be overwhelming enough that you want to quit. And that would be a mistake because it’s much simpler than you might expect.
In general, there are two main types of financing you should consider when it comes to ATV financing: Bank and In-House.
But with those two options comes a lot of decisions.
Here, we’re going to break down the main differences between these types of finances, and then we’ll get into the pros and cons of each of them.
Finally, we’re going to help you figure out which is better for your ATV financing needs.
When it comes to deciding this, a lot of it will rely on your personal preference. But we can at least give you the information you’ll need to make an informed and educated decision!
Bank Financing
Bank financing is, in short, a loan. To get a loan, you’re going to have to submit several documents, such as financial statements and valid identification.
These loans also tend to have a shorter payment period, allowing up to 5 years for you to pay your loans.
Loans are, in general, used more for business expenses because of the professional atmosphere. For someone looking for an air of credibility, having connections with a bank may help.
Of course, if you’re looking into ATV financing, you probably don’t care about the office decor of your bank. That doesn’t have much bearing on getting an ATV.
That isn’t to say that you can’t use a loan to finance your ATV. It’s just that it might be a bit harder to get if you don’t have a specific reason for getting it.
Just like with any other finance option out there, there are pros and cons to consider. Here are some things you should know about asking for loans from the bank.
Pros
When most people go to banks for financing, they do it because they’re looking for professionalism and familiarity. They have plenty of experience in dealing with banks, so they know what they’re getting when it comes to process.
These are the main things that people like about bank financing:
- Low to high, fixed interest rate
- Predictable payments
Cons
On the other hand, there are several things that people don’t like about bank financing. The real professionalism that made them so happy with the service can also turn people off because of all of the hassle.
Here are the things that people don’t like about bank financing:
- Lots of paperwork
- A long wait time
- Requires strong credit
- Almost always involves collateral of some sort
In-House Financing
In-House Financing is, technically, a loan. But, they are “extended payment terms.”
What this means is that the ATV dealership works with banks to be able to finance your choices themselves — in other words, “in-house.”
What it comes down to is that you’re getting money from a bank but with more flexibility and than a bank. The main difference here is the more extended pay period, similar to boat financing, which usually lets you pay anywhere from 1 year to twenty years.
This is not exactly a pro or a con. It’s a neutral trait that may be convenient for some, but not for others. In any case, it’s something you need to take into account when trying to figure out how to finance your ATV purchase.
Just like with bank financing, there are some pros and cons that need to be considered if you’re looking to get in-house financing. Here are just some of the things you should know if you’re looking into it.
Pros
The best thing about in-house financing is convenience. When it comes down to it, people who are looking for ATV financing are looking for something simple, fast, and fun.
Here are some of the main benefits of choosing in-house financing, as opposed to bank financing as listed up above:
- Less paperwork
- It allows you to get a loan less than perfect credit.
- Considered a “trustworthy” option where you can generally be counted on to pay on time
- Less of a wait time
- Never requires collateral
- One-stop shopping — you get your financing at the same place that you get your ATV
Cons
Of course, no system is perfect. And there are a few things that worry people when it comes to in-house financing. For example, some see in-house financing as a bit less trustworthy, just because they don’t know the house as well.
Here are some other things people don’t like about in-house financing:
- Depending on your credit sometimes higher interest rate
Verdict
Ultimately, a lot of your decision will depend on your own needs.
When deciding between a bank and in-house financing, there are several things you need to consider. Here are some questions for you to ask yourself.
- Do I want to save time by not trying to go back and forth between dealerships and banks?
- Am I getting this ATV for fun, as opposed to for work?
- Do I want the ATV as soon as possible?
- Do I have some trouble with my credit score?
- Is my income steady enough to afford to be able to pay off the loan?
- Can I handle the payments?
If you answered yes to most of those questions, then you lean more towards in-house financing. But if you answered no to most of them, you might lean more towards bank financing.
When it comes to financing, every person’s journey is different. It is impossible for anyone but you to know what is the most appropriate course of action for you.
When deciding between financing options, you’re going to have to consider both of your options carefully and thoroughly before reaching a final decision.
But what’s our opinion?
We promised to give you all of the information, so it seems only fair that we tell you what our personal preference is.
We believe that in-house financing is better, specifically for ATV financing. This is because of the wait time that is associated with it and not required to provide collateral.
First off, in-house financing requires less paperwork. This makes it much more comfortable and less stressful to get — and who wants stress when they’re trying to get an ATV?
Plus, if you’re looking for ATV financing, you don’t want to wait for it. Chances are you want the ATV for a reason, and it’s probably time-sensitive. If you’re stuck waiting around for a loan, it can put a damper on your plans.
With in-house financing, this is less of a concern. Because it’s a faster wait time, you can make sure that you get your ATV exactly when you want it.
Another big plus is the fact that you don’t have to worry about your credit score as much when it comes to trying to get an ATV. That means that you don’t have to worry about any past mistakes when trying to finance your ATV.
Ultimately, of course, there are some things you should watch out for. If you don’t know if you’ll be able to pay off the ATV within five years, be cautious. You also need to be honest with yourself over whether or not you can afford the interest rates.
If these things aren’t a concern for you, however, In-House is the winner!
Want help with ATV Financing?
If you agree with us and think that in-house ATV financing is the best way to go, we have the perfect deal for you.
Our finance team works with over 15 different banks to make sure that you’re getting the best deal possible. Our team of professionals also works hard to make sure that your money and information doesn’t get into the wrong hands.
In-House financing is scary to some because it seems less official than a bank. But at the end of the day, if you’re getting the funding from people you trust, you don’t have to worry.
We work hard to be that kind of person for our clients.
Our goal is to keep things simple and fast for you — the opposite of what you would find in bank financing! We know what makes people choose in-house over banks, and we are dedicated to giving that fast and effective service to you.
If you’re interested, we’d love to have a chat. Apply now to talk to one of our lovely and very competent professionals!
We want to see you get your ATV financing without a hitch, so you can move on to having fun!
You deserve to have the ATV of your dreams. If you’ve been waiting on this for too long because you can’t decide what sort of financing to use, wonder no longer! You now have all the tools you need to make an informed, careful decision. If you still have questions, we’d love to hear from you – contact us today.