Tips For Obtaining a Powersports Loan

Powersports vehicles have only become more popular since their advent in the 1980s, since they offer both recreational and utilitarian off-roading capabilities. However, if you’ve even just started shopping for one, you know that powersports vehicles don’t come cheap. This is why so many people opt to finance their powersports purchase with a loan. 

Cool Springs Powersports in Franklin is your Tennessee powersports vehicle dealer. Below, you’ll find our top tips on how to responsibly take out a loan to purchase a powersports vehicle.

1. Build a Proper Budget

First, you need to determine what amount you can afford to pay each month to pay back the loan. You don’t want to overburden yourself and come up short at the end of the month because your payment amount was too high, but you also have to make sure you’re hitting the bare minimum monthly payment required.

There are a lot of online loan calculators that can help you determine from a vehicle’s price how long it might take to pay off that vehicle at different rates. Bear in mind that these calculators use a standard interest rate that may not be what you end up with from an actual lender, so give yourself some wiggle room.

2. Make Sure You’ll Qualify

Not everyone is going to qualify for a loan. If you have very poor credit, many lenders will be extremely wary of lending you any money. This is why checking your credit score is a good first step when determining whether you’ll qualify for a powersports loan. The higher the score, the better, but it’s also not the only thing that a lender will want to know about your financial situation. Other concerns include:

• Credit history (how long you’ve had credit and how good you were about paying it off)
• Debt-to-income ratio (how much you owe versus how much you make)
• Down payment size (the more you can pay up-front for your powersports vehicle, the better)
• How old the powersports vehicle is and what its history is (if bought used)
• The price and value of the powersports vehicle

3. What If My Credit Is Bad?

Well, nobody’s perfect, and there are some lenders who specialize in working with people who have less-than-stellar credit. Some lenders even work with people who have no credit history whatsoever. Don’t rule out your options just yet. You can always discuss potential financing options further with the financing department here at Cool Springs Powersports.

Seeking powersports vehicles for sale near Nashville? Visit our dealership in Franklin, TN, to take a look at our wide stock of new and used powersports vehicles for sale. When you’re ready to talk loans, you can get all your questions answered by our financing department. Cool Springs Powersports proudly serves greater Nashville as well as the cities of Spring Hill and Columbia, TN.