When shopping for your next ATV, finding a finance calculator online appears to be simple on the surface, however getting an accurate, unbiased estimated monthly payment is actually quite difficult to find. Dealerships tend to show the best case scenario when it comes to what the lender offers while leaving out major details that play a significant role in the accuracy of the monthly payments presented.
That's where we come in - with the best ATV finance calculator Canada has to offer, period. This user-friendly tool simplifies the complexity of your loan terms, including estimated fees, providing the honesty to include all costs involved in the calculation. In this guide we will help you understand all the terms and concepts you need to use our calculator efficiently.
Our ATV Loan Calculator Explained
Let's go over some crucial terms you'll encounter when using our calculator.
- Cash Price: This is the sticker price of the vehicle you're looking to get financed.
- Interest Rate: This is the approved or estimated interest rate for your loan.
- Term Length: This refers to the length or duration of the loan you're applying for.
- Payment Frequency: This term relates to how often you'll make your payments - be it bi-weekly, semi-monthly, or a monthly payment.
- Payment Estimate: An estimate of what your payment will be based on the inputs.
- Cash Down: The amount of cash that you are planning to put down towards your loan. You can also add the expected value of your trade-in if you are upgrading.
- Dealer Documentation or Admin Fees: This is intended to cover any dealer adminstrative costs involved with the extra footwork when financing. This dealer fee can vary widely from a few hundred dollars up to over a thousand dollars if you choose to obtain a loan through a less reputable dealer. In some cases, the dealership may include this fee in their price. Our calculator defaults to $499 which is charged by our partner at Revival Powersports.
- Lenders Fee Estimate: The fee charged by the lender who provides you the loan. Again, this amount may vary significantly. Loans for bad credit tend to have a larger fee assessed. In Canada, the lender must also calculate and show your APR including fees in your documents.
- Other Fees: Charges from dealers and lenders, such as private sale markup or government lien registration fees. Add-on products like upgrades or warranties can also be included here.
- GST 5%: Canada's federal sales tax. Calculations are automatic based on the sticker price. Some dealerships and lenders may tax add-on products and their admin fees.
- Total Amount to Finance: The total principal balance estimated for your loan including the total of the sales price, fees and taxes minus your down payment or trade-in.
It's important to note that you may have to pay provincial or harmonized tax depending on your location. While some dealerships might roll Provincial Sales Tax (PST) into the loan, customers from other provinces may need to pay it directly to the registry. This decision is often made on a case-by-case basis.
All facts and figures shown are for illustrative purposes only. It is important to ensure that the dealer or lender that you are working with offers full disclose including the rate you qualify for as well as the term length that they offer. In addition, you should always get an estimated monthly payment as well as the total all-in price and compare to our tools to ensure it is within reason. Finally, you should request an amortization schedule. This will show you how much of your payment is going towards the principal over time.
Beware of Scams
As with any financial transaction, there are bad actors out there to watch out for. The recreational and powersports vehicle sector is no exception. Here are some potential scams that you may come accross:
- Misleading Interest Rates: Some dealerships might advertise a lower interest rate to attract applications, even though those rates aren't genuinely available. Always ask for a written agreement that explicitly states your terms. Ensure that the APR that they pitch you matches the documents.
- Lead Generators: Some businesses collect applications under the pretense of being a dealership, only to sell your data to other dealers. This is especially true for customers who may have poor credit and a lack of options with these shady dealerships taking advantage of personal circumstances. It's essential to verify the legitimacy of the business before sharing your personal information.
- Hidden Fees: Be cautious of dealerships that do not disclose their documentation or administration fees upfront. All costs should be transparent and discussed before signing any agreements, at the lease, and prior to applying at best.
- Guaranteed Financing Offers: Be wary of dealerships advertising an approval guarantee, as no loan in Canada is 100% certain. Legitimate lenders always assess an applicant's credit history, income, and other factors to ensure that the loan option they calculate is one that you can afford.
Remember, all the values and information provided by the calculator are estimates. They serve as a useful guide but shouldn't be used as definitive figures. All data and loan figures are subject to approval on an individual basis.
Using our ATV financing calculator empowers you to navigate the ATV financing journey with confidence. The more informed you are, the more likely you are to secure a powersports financing plan that suits your needs without any unforeseen hiccups. Happy riding!
For more information on ATV financing, check out our other posts: