Your Guide to Financing Powersport Vehicles

If you’ve ever had to finance a car or a house, you know that getting a loan can be a bit of a tedious process. Although the loan process can be challenging, knowing what to expect before you apply can make the whole process easier.

Read on to find out what to expect when you begin the financing process for powersport vehicles.

Know Your Loans

Did you know that powersport vehicles aren’t financed through a general car loan? You must apply for a recreational loan in order to start the financing process. 

Applying for the correct loan is the first step to ensure that you can get the powersport vehicle of your dreams. Once you find the best financing option for your situation, there are a few more requirements to keep in mind.

Credit Score

There are a few things you’ll need to prepare before you begin applying for loans. First and foremost is your credit score. Your credit score is one of the most important contributing factors to your loan, and it is advised that you try and get it above 700 before applying with any lenders. 

While you might be able to get away with a lower credit score for other purchases, recreational loan applications are less likely to be approved when you have a lower credit score. If you aren’t satisfied with your current score, paying off debt and paying bills on time can significantly improve your credit score. 

Down Payments

Generally speaking, a down payment will be about 20% of your powersports vehicle’s sticker price. If you can afford more than this, or have the time to save up for a larger initial payment, it’s a great idea to pay more upfront. The larger your down payment the better your loan rates will be, and the less you'll end up paying in the long term. 

Budget

It’s important that you budget your monthly income before looking into recreational loans. Split your income into expenses, such as monthly bills, and savings. Your savings should be broken into 3 categories; spending allowances, emergency funds, and retirement pensions. 

Take a close look at where costs and spending can be reduced and where you may have some excess money. All extra funds can go toward your monthly loan payments. Be careful not to spend beyond these restrictions, or you could find yourself in debt or, even have your purchase repossessed. 

Ultimately, proper financial planning can allow you to find financing for your dream powersport vehicle. Make sure to follow these tips, and ask a member of the LeMond's Motorsports team to help you make the best financing decisions for your situation.

LeMond's Motorsports in Fairfield, Illinois, is proud to serve those in and around Mt. Vernon, Illinois, Evansville, Indiana, and surrounding areas.