In Canada, getting a loan for a snowmobile is commonplace and often does not require a good credit rating. The reason for this, in part, is the extremely widespread use of snowmobiles across Canada. Not only are they popular for entertainment and sightseeing, but in rural areas, they are used for transportation, as farm tools, and even by Inuit people in their hunting excursions. Snowmobiles also allow year-round access to remote cottages.
With so much demand for snowmobiles and so few people having the cash on hand to buy them outright, it is no surprise that many Canadians take out a snowmobile loan at some point in their life.
What Kind of Terms Can I Get on a Loan for a Snowmobile ?
As with other loans, the terms will vary based on a number of factors. Generally, you can find loans ranging from 4% to 7% interest and with payback periods of 4 to 6 years, depending on your credit history and on how you want to structure your loan. Lenders will normally approve loans for both new and used snowmobiles, with prices from around $2,000 to $10,000 or more, depending on the model and the machine’s condition.
Lenders may be banks, credit unions, or specialty lenders who focus on snowmobiles and other outdoor recreational equipment. There are also many online brokers who can match you to an ideal loan whether you have good credit, bad credit, or no credit history at all. Even those who are new to Canada or in the midst of bankruptcy can sometimes secure a loan.
Many lenders allow you to submit your application online, over the phone, or by fax. The process is often quick and without upfront fees. Additionally, once you get approved, you are frequently allowed to buy from a dealer of your choice.
The two main options for a snowmobile loan are as follows:
- If you have good credit, you can get an unsecured (no collateral needed) personal loan with a relatively low interest rate.
- Another option is an installment loan from a specialty lender, with the rate depending on your credit score.
Tips for Those Considering Taking Out a Loan for a Snowmobile
Here are a few things to consider before making any final decisions about taking out a snowmobile loan:
- Choose your machine carefully. Are you willing to settle for a used sled in good condition or are you willing to pay more for a brand new machine? Do you need only a basic, entry-level model or do you need a high-performance one like a touring or rough-terrain model?
- Choose your lender carefully.Many brokers can connect you to lenders (or even to manufacturers) with superior financing terms or to those that will accept less than sterling credit. The right match is out there. With the right help, you will find it, so don’t give up the search.
- Follow all government regulations. Be sure to get informed on provincial licensing and insurance requirements. Take a safety class, practice before venturing out, and go out with a group if you are new to snowmobiling.