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Tips For Financing a UTV Purchase

Nov. 16 2021 Buying Guide By Richmond Equipment

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UTVs are powerful, compact, and convenient vehicles that are all things to all people, from toys used on nature adventures to tools used around the farm, construction site, or campus. Unfortunately, these versatile vehicles aren’t always cheap, so unless you can pay the entire sticker price up front, you might need to turn to financing. We here at Richmond Equipment know that can sound intimidating, so we’ve put together some tips for financing your UTV purchase, below. To learn more, or to see the UTVs we have for sale, contact our store in Richmond, Texas, today!

Make a Budget

Step one in any financial decision is budgeting. Check out average UTV prices online to give you a good baseline, then take a look at your own finances. Most loans require around 10-20% of the sticker price up front as a down payment, so see if you can afford that much immediately. The rest will be paid off in monthly installments, but keep in mind that interest rates might increase those payments a bit. Check out some loans available near you to get an idea of what those rates might be. Also remember to factor in regular maintenance, fuel, and riding gear.

What You Bring to the Table

Most lenders will require some information to decide whether you qualify for their loans, including:

  • Credit score/history.
  • Debt-to-income ratios.
  • Size of the down payment.
  • Age and quality of the vehicle in question.
  • Price and value of the vehicle.
  • Any pertinent trade-in information.

Make sure you’ve got all this information prepared before your first meeting.

Credit Score

Of all those factors, your credit score is one of the most important. A good score can make qualifying for loans far easier, but if yours isn’t where you’d like it, that’s okay. While you’re gathering all this info and budgeting, try buying a few small things and paying them off promptly or paying off existing debt to boost your numbers.

If your score still isn’t stellar, don’t sweat it. Most lenders can work with whatever you give them, and there are plenty of loans that aren’t quite so picky about credit scores.

The Loan

Speaking of loan types, there are two primary types of loans you can qualify for. The first type is an secured loan, which is the easier of the two to get if your credit score is low. These loans have long repayment periods, low interest rates, and higher overall loan amounts. The downside is that they use your UTV as collateral, so defaulting may lead to it being repossessed.

The hardest loan to get with a low credit score is an unsecured loan. These loans tend to have short repayment periods, high interest rates, and lower overall amounts, but your UTV won’t necessarily be repossessed if you default.

Ready to get started? Contact our financial experts here at Richmond Equipment for more information, or to just look over our UTV inventory. We proudly serve Houston and Rosenberg, Texas—let us serve you today!