Snowmobile Financing Loan: There is something about the combination of speed and snow that is really appealing enough for fun seekers to want to purchase a snowmobile. With more than 1.2 million registered in the U.S, snowmobiles have become a hit for outdoor enthusiasts who enjoy the cold.
Snowmobiles are not just for those who find it as an hobby, they are a critical means of transportation for the military, government services, farmers and ranchers, postal delivery, and ski patrols.
If you are in need of additional financing to buy a snowmobile, one of your options are snowmobile loans. Learn more about this method below.
Why Finance a Snowmobile?
Whether you want one for transportation or just for fun, you have the best regions for snowmobiles. With hundreds of miles of trails and some of the country’s most beautiful wilderness right in our back yards, a sled is a great way to enjoy our long winters and heavy snowfall.
There are different types of snowmobiles for recreation, transportation, or work, and with used sleds in the mix, a pretty wide range of prices. You could either be looking at $1,000-$2,000 for a used vehicle, and up to $10,000 or even more for a new one.
Having that in mind, financing is an option to get you out on the trails and allow you to pay it off in monthly installments.
Snowmobile Loan Benefits
- Rates as low as 4.99% fixed APR
- Available for both new and used snowmobiles
- Terms up to 84 months
- No application fees
- eSignature – Sign loan documents from home
Choosing a New or Used Snowmobile
Smart Tips: Before You Shop
Before you get a loan, you will want to have a good idea about how much you can afford. New owners should put in expenses in addition to the snowmobile itself. Make sure you consider costs for:
- New storage space at your home
- Trailer for transport
- Ramp or lift for getting sled onto trailer
- Clothing and gear, including helmet, clothes, boots, gloves
- Trail Rider Association and Trail Fees (contact your local association for details)
There may be other incidentals in addition to these, to account for along the way, including fuel, maintenance, and repairs. Again, a dealer and friends can help you with average or expected expenses.
Dealer and Consumer Direct Snowmobile Financing Options
The most common form of financing used for snowmobile purchases is an unsecured installment loan via a power equipment loan specialist. These lenders specialize in financing power equipment such as motorcycles, snowmobiles, watercraft, all-terrain vehicles, and the tow trailers needed to transport them.
Financing is mostly obtained through power equipment dealers who partner with specialized lenders; but consumers can also obtain these loans directly from the lender. Every now and then, manufacturers offer special factory financing as well.
Because snowmobile loans are unsecured, dealer and consumer direct financing can be fairly costly with the best rates for the most creditworthy borrowers currently ranging from 4% – 11%. Loans are available for up to $50,000 with loan terms period between 12 and 60 months.
What About a Personal Loan?
Personal loans can be used for anything, including financing a snowmobile. But if you are not able to qualify for the lowest rates from a snowmobile loan specialist, you are not likely to qualify for a decent rate on a personal loan either.
However, if you have an excellent credit, you might be able to qualify for a loan rate that is lower than a snowmobile loan.
If you think you would be able to handle the monthly payments on a personal loan at a given interest rate, then going with a personal loan lender may be a great option. Have it in mind that you need to put down on the application that these funds would be for a snowmobile.
A Credit Card is Probably Not Your Best Option
Most snowmobile purchases are made with credit cards which could be the most expensive pattern of financing since the average credit card interest rate is around 17%.
If you are hoping to offset the higher rate using a rewards credit card, it will be a temporary offset at best. The ongoing interest charges will alter the benefits unless the balance is paid off quickly.
The best choice for credit card users is to use a balance transfer credit card with a 0% APR introductory period. However, unless you can pay the full balance before the expiration of the promotional period, you will start to incur the accrued interest charges on the purchase.
A better financing for a snowmobile option asides a loan may be a factory financing offer that includes a rebate and a low rate. The next best choice would be to obtain your financing through a loan specialist and then negotiate your best cash deal with a dealer.
If you are not able able to qualify for either form of financing and are looking at a high interest personal loan or credit card as your financing source, your best option would be to wait until you can save more money towards your purchase.