Motorsport Financing – Motorcycles, ATVs, UTVs, Snowmobiles, Watercrafts and More

Quick Links:

• What is a Motorsport Loan?
• Differences Between Motorsport Loans
• Choosing a Motorsport Loan
• Frequently Asked Questions About Motorsports Loans

What is a Motorsport Loan?

Motorsport financing is very similar to a normal auto loan - it’s a loan (usually secured against the vehicle being purchased), to help you buy the vehicle. The loan is paid back in regular installments; if you fail to pay back the loan and it’s secured, the lender can seize the vehicle from you. The size and terms of motorsport loans can vary widely. You can use our boat loan calculator to explore different scenarios and see what your payments would be.

Differences Between Motorsport Loans

The interesting facet of motorsport loans is the diversity of the vehicles they can be used for. And there are almost as many providers as there are types of vehicle to purchase! This can make things seem more complex, so it’s good to start with the basics and know the major differences between types of motorsport loans.

Different Vehicles

It’s possible to get specific financing for a great many types of vehicle, including:

• Motorcycles and mopeds
• Dirt bikes
• Snowmobiles
• ATVs and UTVs
• Boat loans
• Jet skis
• Other personal watercraft
• RVs
• Trailers
• Other leisure vehicles

Different Lenders

Motorsport enthusiasts can access financing through the following:

Standard Auto Loan Providers

Many large auto financing companies offer loans for motorcycles, trailers and other vehicles, alongside their traditional auto loans. The benefit of these companies is that they are large and easy to access, and you may even have worked with them before. They also can offer bad credit car loans options to most. The downside is that they do not specialize, so they will not offer loans for every type of leisure vehicle.

Independent Third Party Providers

There are a number of independent companies, unaffiliated with a brand or even type of vehicle, which specialize in motorsport financing as a niche sector of the auto loan market. These companies can offer loans for most different leisure vehicles, and a variety of loan types; you are likely to have the widest range of options with these providers. Not every one of these companies is reputable (or stable), so it’s important to do your research before choosing a provider.

Loans from Manufacturers

When purchasing a motorsport vehicle of a specific brand, you may have the option to access financing via that manufacturer - for example, when buying a Yamaha motorbike, you can apply for financing from Yamaha Financial Services, via the Yamaha dealer. The same is true for Honda ATVs (via Honda Financial Services), or SeaDream boats (via SeaDream Financial), and many others.

The benefit of these loans is that they are simple to set up, as they are offered by the dealer, and they are very specific. You can rest assured that everything on your vehicle is known and taken into account. The downside is that because these companies are not directly competing for the same business, the terms may be less competitive.

Banks and Other Lenders

Lastly, banks and other financial institutions, like credit unions, may offer financing for motorsport vehicles. They do this as part of their wider vehicle financing business, and typically offer loans for all of the major leisure vehicles (ATV, snowmobile, personal watercraft). Generally, banks have stable loan offerings, and you may already do business with them. However, the qualifying criteria can sometimes be harsher, and loan duration is generally shorter. There are also wait times to consider, as banks move more slowly than dedicated loan providers.

In-House vs. Outside Lenders

All of the above financing providers may be accessible to you via the dealership you are purchasing from; many dealers work with several different loan providers to help their customers gain access to financing. This includes banks, third party lenders and manufacturers. However, going with the dealer’s options isn’t always the cheapest route, and these providers typically don’t cater to people with lower credit scores. So always check the eligibility requirements of the providers your dealer recommends before proceeding.

Different Loans

All loans come with an array of options that relate to the loan terms, such as:

• Secured loans or unsecured
• Fixed or variable interest rate
• Loan duration
• Down payment requirements (if any)
• Payment schedule
• Penalties or other fees for late payment, early payoff, etc.
• Minimum and maximum loan amount

As well as the above, motorsport loans may have an extra set of possibilities, including:

• Bad credit financing
• No credit financing
• Auto Loan Refinancing
• Cash back financing
• Additional vehicle warranties that affect the terms of the loan

Choosing a Motorsport Loan

If the above has flustered you with the many different aspects of motorsport financing to consider, fear not. There are some simple steps to comparing and choosing the right loan for you:

1. Understand your financial situation. Your credit score and other personal financial factors will affect which loans you are eligible for. Don’t waste time by completing paperwork for a loan you will never get approval on. Avoid any dealer that says they can guarantee your loan approval - this isn’t actually possible. If you have excellent credit history, you likely don’t need to worry about eligibility, but if not you may have to apply to several providers to find a loan.
2. Request detailed quotes. All loan providers, regardless of type, should be able to provide you with a quote. If a lender won’t provide transparency on their pricing, avoid them! Many reputable lenders will allow you to pre-apply for financing, with no consequence to your credit score, so you know exactly what terms you are looking at before purchasing anything.
3. Compare like with like. Once you have a few quotes in hand, make sure you are comparing loans with similar terms, so you can properly understand the relative costs; also ensure that the loans you are considering have the options you need. For example, if it is important for you to be able to manage your loan online, check that this is possible.

The cheapest option may not always be the right one for you, so carefully consider your needs and check that the loan you’re looking at meets them, before signing anything.

Frequently Asked Questions About Motorsports Loans

What is a motorsport loan?

A motorsport loan is a loan to help you buy a motorsport vehicle, such as a snowmobile, ATV or boat, and is often secured against the vehicle being purchased.

How is a motorsport loan different from an auto loan?

The only real difference between an auto loan and a motorsport loan is the potential difference in terms and availability. In structure and design, they are much the same, but as motorsport vehicles are less common than cars, finding a motorsport loan may be harder and cost more.

Who can I get a motorsport loan from?

There are a few different types of provider of motorsport loans: banks and other traditional financial institutions; manufacturers of specific motorsport vehicles; and third party financing companies.

What do I need to apply for a motorsport loan?

To apply for a loan, you need proof of income, ID, your driver’s license, and payment information (such as a void cheque from your bank). Certain lenders may require more, such as more detailed financials.

What are the requirements to qualify for a motorsport loan?

Eligibility requirements vary by lender; most commonly they include a minimum credit score, regular income, age of majority, and residence in Canada.

Do I need a down payment?

As the cost of motorsport vehicles is lower than most other vehicle types, you often won’t need a down payment, and the loan typically covers 100% of the cost of the vehicle.

Can I add accessories and vehicle add-ons to the loan?

Many motorsport loans allow you to add the cost of accessories for the vehicle to the overall loan amount. This is very helpful in the instance that you need customizations or extra equipment relating to your use of the vehicle.

Do I need a special license to drive an off-road vehicle?

Every province has its own rules regarding leisure vehicle licensing, but generally off-road and other leisure vehicles do require a separate license relating to their operation.

Can I get a motorsport loan with bad credit or no credit?

It is possible to get a motorsport loan with bad credit, or with no credit history. Bad credit lenders work specifically with borrowers with lower credit; they offset the higher risk of these loans with more punitive terms, such as higher interest rates.

Can I get a motorsport loan to buy a used vehicle?

Yes, you can buy a used vehicle with a motorsport loan. Depending on the vehicle and loan provider, terms may vary from what is available with new vehicle purchases; however as used vehicles are almost always cheaper than new ones, this can be a smart way to save money.

Can I use a trade-in to lower the cost of my loan?

Depending on the dealership you are working with, you may be able to trade-in another leisure vehicle to offset the cost of your new vehicle. This helps to lower the overall amount you need to borrow, so your loan is cheaper. This is not always an option, so ask your dealer if this is something you want considered. Remember that trade-in values are not always as competitive as selling the vehicle on the open market.