Just like their automotive counterparts, powersport dealers operate under dealer agreements with the manufacturers they represent. These are referred to as Blue Sky values and can vary from one dealership to another.

1. Lower Financial Barrier

Many powersports enthusiasts choose to finance their purchase rather than paying cash in full. This approach allows them to save their cash for other priorities or life necessities while getting on the road with their dream machine sooner. Plus, making powersports vehicle payments on time builds creditworthiness.

In addition, financing a powersports vehicle typically requires less down payment than an auto loan. This lower financial barrier can open up a larger range of options for customers who want to find the perfect ride to suit their riding style and needs.

For lenders, a robust powersports lending solution can help to streamline loan origination and document compliance processes. This can be achieved through a state-of-the-art platform with automated validation of dealer documents such as the RISC, VSC, GAP waiver and odometer statement. This process decreases bias and error rates and provides a better overall customer experience. In addition, it can speed up the loan decisions and funding process in real-time.

2. More Options

Depending on your credit, you may have more options for powersport financing than you think. Some lenders focus on lending to consumers with good credit or higher, while others are willing to work with customers who have fair or poor credit. Additionally, some powersport manufacturers offer financing as a sales incentive.

Compared to traditional vehicle loans, powersports financing has more credit requirements. This is because watercraft, ATVs, jet skis and other types of powersport vehicles depreciate much faster than automobiles. As a result, lenders require stricter debt-to-income ratios and higher loan-to-value ratios to ensure they are not at risk of losing their investments.

Lenders with powersports lending experience can help guide you through the process of finding a good loan, whether you have fair or bad credit. They also have experience working with unique documentation, such as titles and contracts. They also have origination software that assures documentation compliance and streamlines the approval process. This can significantly reduce the amount of time it takes to approve a consumer for financing.

4. More Money in Your Pocket

Rather than saving up for months or years to afford the powersport vehicle of your dreams, financing allows you to buy it now and pay for it over time with monthly payments. This leaves you with money in your bank account for other things and also helps to build creditworthiness by making consistent monthly payments.

Because lenders see powersports vehicles as luxury items and not a necessity like cars, they typically require higher credit scores to qualify for powersports loans. However, some banks and credit unions offer competitive rates for powersports loans.

Some manufacturers even offer financing incentives to their buyers. This is great for customers who want to upgrade to a new model or purchase the accessories they need. It’s also great for those who can’t afford to pay cash and don’t want to pay high-interest rates for a long period of time.

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