The process of financing your new Polaris is very similar to financing anything else, whether it is a car or a home. You will need to search for lenders and figure out the best rate. Even with the similarities to being financed for other things, it helps to have a general idea of what to do so you are ready for the process of financing and buying.
1. Know Your Credit Score
Just like financing anything else, you want to be aware of your credit score before you start looking for lenders to get your Polaris. The rates that you get will mostly depend on your credit score. Taking the time to check it can give you a good idea of what to expect. It also gives you the chance to make sure your credit report is accurate.
2. Consider Lenders Geared to Your Credit
If you realize that your credit score is mediocre or poor, consider talking to lenders that work with people in your situation. Although not always the case, they will sometimes offer better rates or be more likely to approve you for financing than lenders who deal with everyone. That being said, you should still take the time to look at a minimum of one “regular” lender to make sure you aren’t being ripped off.
3. Understand Installment Loan Types
Most people financing their new Polaris will go with installment loans, which work on the same idea as auto loans. You will be paying a fixed payment for a certain amount of time. You may not realize that there are two types of installment loans. Unsecured personal loans are more flexible and tend to have quicker responses, but they have high rates for those with poor credit. Secured loans are less flexible, but they may offer better rates.
4. Consider Credit Card Financing
Depending on the lender, you may also be able to get credit card financing for your Polaris, such as through a Polaris Star card. The benefit of this is that you can add additional services, accessories, and parts to the loan after the purchase, which isn’t possible with installment loans.
5. Know Your Budget
Finally, be sure you have a firm idea of your budget before working to finance your Polaris. This way, you know how large of monthly payments you can afford. Remember that larger monthly payments lead to shorter loan periods and lower interest rates, saving you money, so you want to pay as much as you can reasonably handle every month.
For help financing your new Polaris or figuring out which model you want, visit Bama Buggies in Tuscaloosa, Alabama.
