Smarter Loans Inc. is not a lender. Smarter.loans is an independent comparison website that provides information on lending and financial companies in Canada. We work hard to give you the information you need to make smarter decisions about a financial company or product that you might be considering. We may receive compensation from companies that we work with for placement of their products or services on our site. While compensation arrangements may affect the order, position or placement of products & companies listed on our website, it does not influence our evaluation of those products. Please do not interpret the order in which products appear on Smarter Loans as an endorsement or recommendation from us. Our website does not feature every loan provider or financial product available in Canada. We try our best to bring you up-to-date, educational information to help you decide the best solution for your individual situation. The information and tools that we provide are free to you and should merely be used as guidance. You should always review the terms, fees, and conditions for any loan or financial product that you are considering.
Canadians love to drive, and Canadians love to be outdoors – so it’s no surprise that motorsports which combine these two loves are extremely popular across the country. 22% of all vehicle registrations in Canada are for trailers, and nearly 7% are for off-road vehicles. Canadians own over 8.6 million boats, and there are over 600,000 registered snowmobiles nationwide. It’s fair to say this is something of a national obsession.
Buying a vehicle to satisfy your desire for adventure can be expensive though, and many rely on financing for their motorsport vehicle purchases. If this is a route you want to know more about, look no further. The table below shows some of the top motorsport loan providers in the country; simply click on a company name to learn more about them. And below that we break down all the basics of motorsport loans, so you know what to consider when making this important financial decision.
Click any of the logos below to explore company profiles, and click “Apply Now” next to a company of your choice to begin their online application for motorsport financing.
You can pre-apply here at Smarter Loans and we will find a suitable lender for you.
A motorsport loan 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.
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.
It’s possible to get specific financing for a great many types of vehicle, including:
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. 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 loans 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.
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.
All loans come with an array of options that relate to the loan terms, such as:
As well as the above, motorsport loans may have an extra set of possibilities, including:
If the above has flustered you with the many different aspects of motorsport loans to consider, fear not. There are some simple steps to comparing and choosing the right loan for you:
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.
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.
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.
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.
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.
Eligibility requirements vary by lender; most commonly they include a minimum credit score, regular income, age of majority, and residence in Canada.
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.
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.
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.
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.
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.
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.
The Smarter Loans Staff is made up of writers, researchers, journalists, business leaders and industry experts who carefully research, analyze and produce Canada’s highest quality content when it comes to money matters, on behalf of Smarter Loans. While we cannot possibly name every person involved in the process, we collectively credit them as Smarter Loans Writing Staff. Our work has been featured in the Toronto Star, National Post and many other publications. Today, Smarter Loans is recognized in Canada as the go-to destination for financial education, and was named the “GPS of Fintech Lending” by the Toronto Star in 2019.