Buying an ATV for the first time can be pretty exciting, but things might turn out quite sour the minute you finance it. Financing lets you spread out the cost of your new machine over time; however, a wrong move just might make it cost a bit more than what you had bargained for. Below, we explore some of the major mistakes to avoid and how you can ensure your ATV purchase is as smooth and problem-free as possible.
Mistake #1: Ignoring a Free ATV VIN Number Check
Before financing, it is of high importance to find its history. With a quick VIN, one can open up the life of an ATV: accidents, previous owners, and every major repair were done. Use a free atm vin number check as a precautionary measure in acquiring an ATV with ease.
By this report, you will likely avoid buying stolen or highly wrecked vehicles, and you will save time and money in the long run. The vast majority of buyers skip this and then face terrible surprises at some point.
Mistake #2: Failing to Set a Realistic Budget
Financing an ATV might seem cheap in the front end, but it will be a fortune once you do not consider the overall cost of the vehicle. In addition to the retail price, the buyer should add the loan interest rate, maintenance costs, insurance costs, and possible upgrades.
Calculate all your costs to estimate a reasonable budget and not overextend your financial limits.
Mistake #3: Choosing the Wrong Loan Terms
When financing an ATV, the terms you choose will greatly affect how much it ultimately costs. You could have a longer loan term, which would give you smaller payments, but the overall interest would be greater.
Short-term loans have larger monthly payments but save you money throughout the loan. Carefully evaluate your options and select a loan term to fit your situation.
Mistake #4: Overlooking the ATV’s Condition and Compatibility
The other common mistake is financing an ATV without a deeper look at its condition. Even though the vehicle looks great, it may have some internal problems. A VIN check will help confirm its condition and whether it is suitable for an upgrade.
For instance, verifying the VIN will help you ascertain whether custom skid plates or performance modifications work on your ATV.
Mistake #5: Not Shopping Around for the Best Rates
The problem is that many buyers dive head-first into financing without comparing loan offers. With interest rates and terms sometimes differing substantially between lenders, it pays to shop around.
Take the time to get quotes from banks, credit unions, and ATV dealerships. Even a slight variation in interest rates can save you hundreds of dollars over the life of the loan.
Mistake #6: Forgetting About Insurance Requirements
Some lenders include the use of ATV insurance as a basis of financing requirements. Not paying heed to their requirement will yield surprise costs. Also, it covers unforeseen circumstances relating to accidents and theft.
Make it a point then to conduct some research with which to also budget accordingly on proper coverage needed for your new toy’s safety.
Mistake #7: Neglecting to Read the Fine Print
Whenever signing any financing agreement, one must be very careful with the terms and conditions. By ignoring the fine print, charges may be hidden, including prepayment penalties, among other surprises.
Take time to review every aspect of the loan agreement and make it clear where uncertainty may arise before signing.
Mistake #8: Underestimating the Value of a Test Ride
Last but not least, never forget a test ride. While the financing deal might look great on paper, the ATV’s performance needs to meet or exceed your expectations. A test ride will give you a better look at how the ATV handles and if it is comfortable, among other aspects of its condition. This step is important to ensure you are financing a machine that truly meets your needs.
Conclusion
Financing an ATV may not be exactly rocket science, but it indeed requires discretion and attention to detail. Mistakes such as not taking a free ATV VIN check, neglecting your budget, and failing to shop for the best loan rates will cost someone time, money, and grey hair.
So, do your homework in verifying the ATV’s history; read all the fine print on a loan; and turn this purchase into an investment.
