Where to find snowmobile financing
Since the cost of a new snowmobile can be high, snowmobile loans are standard. Generally, the most common funding sources are personal loans or dealership financing.
We’ll break down some of your options below.
- Snowmobile loans—accessible applications and online financing
- Dealership financing—get your snowmobile and loan from one source
- Credit cards—probably not a good idea
Using a snowmobile loan
Personal loans are one of the most common financing tools because they are unsecured. You can get funding quickly, and you can use them for just about anything, including financing a snowmobile.
One thing to understand about personal loans is that snowmobile loan rates will depend mainly on your credit, as with most forms of financing.
You could probably get a snowmobile loan at a great interest rate if you have a good credit score. But if your credit is poor, you’ll face higher rates.
Here are a few of your options:
1- LightStream
Offering loans for almost anything, LightStream ranks as our best overall partner personal loan lender with low rates and no fees.
LightStream’s power sports vehicle loan is an excellent choice to fund your snowmobile purchase if you have good credit.
- Credit score category: Excellent, good
- Soft credit pull to check rates: Not available
- Deposit time: As soon as the same day
- Origination fee: 0%
- Late fee: None
- Discounts: 0.50% interest rate reduction for enrolling in autopay
- Repayment terms: 24 – 144 months**
2- Upgrade
If you’re looking for an online snowmobile loan and have bad or fair credit, Upgrade is a good option.
They provide flexible repayment terms and even allow customers to change their payment dates to accommodate their monthly budgets.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As soon as the next day
- Origination fee: 2.9% – 8%
- Late fee: $10
- Repayment terms: 24 – 84 months
3- Upstart
Upstart is an online lending platform that partners with banks to provide personal loans that can be used for almost anything.
When determining eligibility, upstart’s lending model considers education, employment, and many other variables. This model leads to 27% more approvals and 16% lower rates than traditional models.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As fast as one business day
- Origination fee: 0% – 8%
- Late fee: $15 or 5% of payment
- Repayment terms: 36 or 60 months
If you want to compare more options, you can check out our guide to the best personal loans.
Dealer financing and specialized lenders
Another common form of snowmobile financing is an installment loan through 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 often obtained through power equipment dealers who partner with lenders, but consumers can also obtain these loans directly.
Now and then, manufacturers offer special factory financing as well.
If you’re buying your snowmobile from a dealership, ask if they offer financing options. They may finance your purchase directly or refer you to a partner lender.
However, if you’re interested in using dealership financing, make sure you compare their rates with another option, such as one of the personal loan lenders above, to ensure you’re getting a good deal.
Some dealers may pressure you into taking a lousy offer by getting you to sign on the spot.
A credit card is probably not a good option.
Many snowmobile purchases are made with credit cards, which could be the most expensive form of financing available since the average credit card interest rate is around 17%.
If you’re hoping to offset the higher rate using a rewards credit card, it will be a temporary offset at best. The ongoing interest charges will negate the benefits unless the balance is paid off quickly.
The best option for credit card users is to use a balance transfer credit card with a 0% APR introductory period. However, unless you can pay the entire balance before the expiration of the promotional period, you will begin to incur the accrued interest charges on the purchase.
What are the costs of snowmobiling?
Generally, the amount of money you pay for a snowmobile depends primarily on the riding you do. Snowmobilers who stick with trails and gentle, open areas don’t need as much power or sturdiness as those who enjoy more extreme riding.
Here are a few factors that will affect the cost of your snowmobile.
What credit score is needed to buy a snowmobile?
Mountain America reviews a variety of factors when approving loan requests. Due to the nature of the collateral, applicants looking to finance a snowmobile will need a solid payment history and no major credit issues.
In general, an applicant’s credit score should be in the mid-600s or higher and have around 20% of the purchase price saved up as a down payment.
The type of vehicle you want
According to Snowmobile.org, novice snowmobilers could pay as little as $3,000 for a new, 120cc, four-stroke snowmobile.
More experienced snowmobilers who can handle speeds up to 60 MPH might pay an average of $9,000 for a more powerful two-seater vehicle with more stability.
Thrill-seekers who want to test their limits can buy a snowmobile with many lightweight racing motorcycle elements for around $15,000.
Also Read: ATV Loans: What Is the Most Effective Way to Fund an ATV?
Other gear & equipment
The costs don’t stop at your vehicle, however. Active snowmobilers average more than 1,200 miles per year on and off the trails, spending as much as $4,000 a year for trail fees, transportation costs, insurance, maintenance, and equipment.
For example, if you do extreme snowmobiling and need high-quality protective clothing, an outfit could cost as much as $800. Of course, these costs will vary a lot based on your needs and preferences.
Regardless, snowmobiling is not a poor man’s recreation. At an average cost of about $12,000 (including a tow trailer), it is no small investment; and because many families own at least two snowmobiles, the costs can climb to more than $20,000.
