Side by Side & UTV Buyers Guide: Financing and Beyond

Welcome to your ultimate guide on all of the options for side by side financing Canada has to offer! Whether you're planning weekend fun with a rugged all-terrain vehicle or managing tasks with a UTV, knowing the different ATV financing option available is crucial. We've partnered with Revival Powersports to offer you robust financing solutions that make purchasing straightforward and stress-free. From securing the best rates on new or used ATVs, understanding ATV loans, to grasping interest rates and terms, this guide will cover all the essentials. Get ready to explore the expansive Canadian outdoors with your dream ride!

A cartoon character in a chair contemplates ATV choices in thought bubbles overhead

Choosing the Right Side-by-Side

Deciding on the perfect side-by-side for your adventures or work needs is like choosing the right pair of hiking boots—both need to fit your environment and the challenges you expect to face. Let’s break down how to pick between a sport side-by-side and a utility terrain vehicle (UTV), and the implications of choosing between new and used models, as well as different manufacturers.

Sport vs. Utility

Sport Side-by-Sides: Built for speed and handling, sport side-by-sides are your go-to for heart-pumping, adrenaline-fueled escapades through rough terrains. Think of them as the sports cars of the off-road world—ideal for those who crave peak performance and weekend fun.

Utility Terrain Vehicles (UTVs): On the other hand, UTVs are the workhorses. Designed for tasks like farming, hunting, or heavy lifting on work sites, these vehicles come with more storage and hauling capacities. They're not just about getting you from point A to point B; they're about hauling a load when you get there!

New or Used?

New Vehicles: Going new often means more reliable, under-warranty vehicles that likely won't need immediate maintenance. With new side-by-sides, finance options might include more attractive terms through promotional offers from manufacturers. However, always be wary as these offers can come with specific qualifications that not all buyers will meet.

Used Vehicles: Opting for a used side-by-side can be easier on the wallet upfront and might come without the immediate depreciation hit new ATVs face. However, used ATV financing may come with higher rates or more rigid terms, affecting the total cost and monthly payments.

Always remember, the devil is in the details! Ensure you check for any hidden costs or sales taxes that may apply when financing a new or used ATV.

Choosing a Brand

When it comes to brands, the market offers a variety from well-known manufacturers like Polaris, Yamaha, Honda, and Can-Am, to smaller or overseas brands that might offer competitive prices. While major brands often come with the promise of reliability and widespread support, smaller brands can sometimes offer unique features at a lower cost. The choice often depends on personal preferences, availability, and the type of aftersales support you expect.

To research brands, we would recommend a public forum site such as Reddit for the most up-to-date information. You can even sign up and post a question yourself on subreddits such as UTV and get a near-immediate response. It's of the utmost importance to ensure you do plenty of research if you're shopping a brand that is not one of the big-box major manufacturers. Brands like CFMoto have been growing at an amazing pace. In my personal experience, however, many dealers who sell CFMoto or lesser known makes as their sole product line tend to primarily prey on bad credit with massive interest costs that pile up which offset any cost savings.

Choosing the right side-by-side involves more than just picking a vehicle; it’s about selecting a partner for your next adventure or big project. Weighing these options carefully will ensure you find a side-by-side that not only meets your needs but also fits your financial situation. As you gear up to make a decision, let's pivot to exploring the variety of ATV financing routes available to ensure you secure the best deal possible for your new partner in adventure. Next, we delve into the nuts and bolts of ATV financing in Canada—let's make sure you’re fully equipped to navigate this critical aspect!

A character sits at a computer while reviewing ATV options and shopping for an ATV

Understanding Financing Options

Navigating the financing landscape for your next side-by-side or ATV purchase in Canada doesn't have to be a rollercoaster ride. Let's break down the different types of vehicle financing options available, bust some myths about those too-good-to-be-true promotional rates, and give you the tools to secure the best finance deal for your off-road companion.

Traditional Loans vs. Dealer Financing vs. Alternative Lenders

Traditional Loans: These are typically obtained through banks or credit unions and tend to offer competitive rates for those with good credit scores. The terms are straightforward: you borrow a specific amount to finance your vehicle and pay it back over a set period, with interest. These ATV loans can vary depending on your credit history and the lender's policies.

Dealer Financing: Often, dealers have partnerships with financial institutions that allow them to offer ATV financing directly on site. These might come with enticing promotional rates like 1.99% or 2.99% APR for the first few years. However, these promotions usually require excellent credit and might only apply to certain models or terms.

Dealer Brokers: Similar to dealer financing, brokers have partnerships with various financial institutions to get you approved. Unlike standard finance options, however, brokers typically allow you to use your financing approval to buy from anywhere. Many brokers operate primarily online. Reputable brokers will work with their lending network to find the best rate available and do not get paid to sell you a better rate.

Alternative Lenders: For those with bad credit or unique financing needs, alternative finance options can be a lifesaver. They offer more flexible terms and are often willing to consider factors beyond your credit score. Keep in mind, though, that the ease of approval can come with higher rates and additional costs.

The Truth About Promotional Interest Rates

Seeing an ad for a 1.99% interest rate can feel like spotting a unicorn—magical but a bit suspect. Here’s the scoop: these rates are often promotional gimmicks that only a small fraction of buyers will qualify for. They are designed to get you through the dealership doors and are typically attached to stringent conditions like a perfect credit score, shorter loan terms, or mandatory down payments that might not be feasible for everyone.

Moreover, these promotions usually cover only a part of the ATV loan term, after which the interest rate jumps significantly, affecting the overall cost and the amount of your higher monthly payments. Always read the fine print and calculate the full term costs, not just the promotional period.

How to Choose the Best Financing Option

  1. Assess Your Credit Score: Understanding your credit worthiness is crucial. Your credit score will significantly impact the rate you are offered. Canadians can check their scores through major credit bureaus without impacting their credit.
  2. Compare Offers: This is where using a reputable broker can provide the best options for competitive ATV financing. If you're shopping directly at dealerships - don’t jump at the first offer you get. Take your time to shop around and compare terms from various lenders and dealers.
  3. Negotiate Terms: Whether it's the term, interest rate, or down payment, almost everything is negotiable. Don’t hesitate to ask for better terms, especially if you have great credit or if you're making a larger down payment.
  4. Watch for Hidden Costs: Sometimes, it’s not the rate that gets you—it's the fees. Look out for admin & processing charges, early payment penalties, and other costs that could sneak up on you.
  5. Be Wary of Prepayment Penalties: Paying off your debt early will always make for lower overall interest costs. The ability to add lump sum payments when you are able to afford to do so is an absolute must. Avoid any new or used ATV dealerships who charges any penalty for prepayment.

Choosing the right financing for your side-by-side or ATV is as important as selecting the vehicle itself. It’s about finding the sweet spot where your budget meets your dream of owning the perfect off-road vehicle. Remember, whether it’s for blazing trails or tackling tough tasks, your financing choice should pave the way for many adventures to come, not financial headaches. Next up, we'll explore specific considerations for those navigating the financing world with less-than-perfect credit. Stay tuned!

A character is surprised and happy that he has a financing approval locked in, a green checkmark shows on the screen

Bad Credit Side-by-Side Financing

Worried about financing an ATV with bad credit? Don't be—it's definitely possible! Canada has the best options who offer solutions that might just get you riding, even with prior credit trouble. Let’s delve into the world of bad credit financing and find out how you can still snag a great ride without top-tier credit.

Understanding Bad Credit Financing

Bad credit financing is like the off-road path less traveled—it's definitely bumpier and a bit more challenging, but with the right approach, it can lead you to some pretty scenic spots. Here’s what you need to know if you’re cruising this route:

Higher Interest Rates: It’s an open secret that finance companies take on more risk with clients who have a bad credit history, which usually translates into higher rates. While no one loves paying more, think of it as the premium you pay for the lender taking a chance on you.

Rigid Terms: Typically, the lender will determine affordability as to what payments will be accepted in the finance process. This means less flexibility to decide between shorter or longer terms.

Required Down Payments: Sometimes, securing financing with bad credit might require putting down a lump sum upfront. This down payment acts as your financial commitment to the sale, reducing the lender’s risk and potentially lowering your monthly payments.

Tips for Securing Financing with Bad Credit

  1. Check Your Credit Score: Before you start shopping for a new or used ATVs, know where you stand. Canadian residents can check their credit scores through major credit bureaus. This knowledge will help you understand what kinds of rates you might be looking at.
  2. Shop Around: If you're shopping directly at dealerships, don’t settle for the first financing offer you get. Many finance companies specialize in ATV loans, so take your time to compare what’s out there. Using an online broker may be the best option as it provides access to an entire network for ATV financing.
  3. Consider a Co-signer: If you have a spouse who trusts your driving skills off-road and your responsibility with money, having them co-sign could improve your ATV loan terms significantly. Just make sure they understand their obligations. Typically only a spouse or common-law partner is accepted in Canada.
  4. Prepare for Higher Costs: Knowing that you’ll likely face higher rates and possible additional costs can help you budget more effectively. Calculate the final cost of the ATV loan with these factors in mind to avoid any unpleasant surprises.
  5. Work on Your Credit: While this won’t help immediately, improving your credit score can open up better ATV financing routes in the future. Simple actions like paying bills on time or reducing your debt load can make a significant difference.

Securing an ATV loan with bad credit isn't just about managing higher costs—it's about making smart decisions that can lead to better financial health and ultimately, the freedom of the open trail. So gear up, plan your route carefully, and remember, every journey towards owning that dream vehicle starts with a single step (or application).

A comedic image of a cartoon Polaris RZR sitting in a field of books

Financing Terms Glossary

To ensure you're well-prepared for the financial aspects of purchasing an ATV, here's a detailed glossary of terms you might encounter:

  • APR (Annual Percentage Rate): The annual rate that is charged for borrowing, encapsulating both the rate and any associated costs.
  • Amortization: The process of spreading out loan payments over time, which includes both the principal and interest.
  • Balloon Payment: A large payment due at the end of some loan agreements, significantly larger than regular installments.
  • Prepayment: The act of repaying a loan or part of a loan ahead of the scheduled due date, which may help reduce overall costs.
  • Guaranteed Financing: Often advertised in promotions, though true guaranteed financing is a unicorn. Banks will always perform some form of credit evaluation when offering financing.
  • Refinancing: Replacing an existing loan with a new one, usually to improve rates or adjust the repayment terms.
  • Credit Score: A numerical expression based on the analysis of a person's credit files to represent their creditworthiness.
  • Principal: The original sum of the loan that needs to be repaid, not including the interest.
  • Interest Rate: The percentage of the principal that is charged as interest to the borrower.
  • Loan Term: The length of time over which the loan is to be repaid.
  • Fixed-Rate Loan: A loan where the rate remains constant throughout the term.
  • Variable-Rate Loan: A loan where the rate may fluctuate based on the market or an index.
  • Down Payment: An initial payment made when purchasing, which reduces the amount that needs to be financed.
  • Total Cost: The full amount that will be paid over the life of the loan, including all interest and added charges.
  • Lender: The organization or individual providing the funding.
  • Co-Signer: A second person who agrees to take responsibility for the loan if the primary borrower fails to make payments.
  • Dealership Broker: An intermediary who helps negotiate the terms of a vehicle purchase or financing deal between the buyer and the dealership.
  • Manufacturers Financing: Finance options offered directly by big-box brands. These typically offer lower rates with rigid approval parameters and shorter terms on a new ATV.

Armed with this glossary, you should find it easier to understand the terms and conditions of your ATV financing, helping you make more informed decisions about your side-by-side purchase.

A character sits in an ATV with a maple leaf on the side, the rocky mountains in the background and a Canada flag

Canada Side-by-Side Financing FAQ

When it comes to financing ATVs in Canada, everyone has questions. Here are answers to some of the most frequently asked questions, served up with practical advice to keep you in the driver’s seat when navigating the financial trail!

What are my financing options for a side-by-side in Canada?

You have several routes to explore: traditional recretional loans from banks or credit unions, dealer financing through your ATV dealership, or online ATV brokers who might offer more flexible terms, especially if you have bad credit. Each option comes with its own set of advantages, whether it’s potentially lower rates with traditional finance options or the ability to deal with poor credit or allow flexibility through online brokers. Online dealer brokers typically have the most access to a variety of lenders to help with various situations more efficiently.

Can I finance a side-by-side if I have bad credit?

Yes, financing is still possible with a bad credit history. Dealer brokers like Revival Powersports have a nationwide network of lenders who specialize in providing loans to those with less-than-ideal repayment history and lower scores. Expect higher rates and possibly larger down payments, but don't worry—there are plenty of lenders who offer flexible repayment terms to fit your budget.

What should I know about interest rates?

Approval rates can vary widely depending on your score, prepayment history, term details, ATV price, and the lender who you have the approval with. Rates might be lower if you have good credit or opt for shorter terms. Always ask for the annual percentage rate (APR), which includes all costs and the rate, to understand the all-in cost of the loan. Using this, you can use a tool like our ATV loan calculator to get an estimate on your payments.

Are there any hidden fees I should be aware of when financing a side-by-side?

Always read the fine print. Look for administration fees, early repayment penalties, and whether taxes are included in your financing. Understanding all costs upfront can save you from surprise hidden fees down the road. If fees are not listed up-front, it may be best to find another option.

How does the down payment affect my financing?

The larger your down payment, the smaller your loan amount will be, which can result in lower monthly payments and less paid in interest over time. Some lenders may also offer better rates to those who make a significant down payment.

What’s the difference between financing a new vs. a pre-owned side-by-side?

Financing a new side-by-side often comes with the perk of lower rates and special promotions, thanks to partnerships between dealerships and manufacturers. Financing a used ATV might carry higher interest rates, but the initial price—and therefore the total financing amount—can be significantly lower.

Can I pay off my loan early?

Most lenders allow early repayment, but check if there are any penalties associated with doing so. Paying off your ATV loan early can reduce the total interest you pay, making it a financially savvy move if you're able to swing it.

What documentation do I need to finance a side-by-side?

Typically, you'll need to provide proof of income, residency, and a valid driver’s license. Many of the best lenders will also need a SIN and while they can't technically require it - they will simply reject and decline applications which do not provide it. The exact requirements can vary, so check with your lender before you apply to finance an ATV.

How long does the financing process take?

The finance timeline can vary from one lender to another. Some dealers offer instant financing decisions, while traditional banks might take a few days to process your application. If you're working with online lenders, the process might also be quicker, often catering to those who need immediate approval for their ATVs.

By keeping these FAQs in mind, you can steer clear of common pitfalls and ensure that financing your side-by-side is as smooth as your next off-road adventure.

That's a wrap on our journey through the financing landscape for side-by-sides and ATVs in Canada! We've explored various avenues, from securing finance opportunities with traditional lenders to understanding the flexibility offered by our partners at Revival Powersports. ATV Financing doesn't have to be a roadblock on your path to adventure—it can be a gateway to the great outdoors, ensuring you enjoy your new ride without financial strain.

Looking to get financed today? Apply at Revival Powersports!

A cartoon character giving a thumbs up while driving in his Polaris RZR on a field in Alberta

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