Understanding Powersport Financing | Synchrony Powersports

Are you dreaming of a Sunday ride on your motorcycle or an afternoon four-wheeling in the woods? Maybe you love the water and you’re looking for an adrenaline-filled jet ski ride or a sunset cruise on your new ski boat.

Maybe you think those dreams are beyond your reach. But are they? Here are some helpful things to know about financing for powersports equipment like boats, motorcycles, snow mobiles, personal watercraft or ATVs/UTVs.

Financing for Powersports: Helpful terms to know

When you're looking at installment loans, there are some important words and terms to keep in mind when comparing financing options from a dealership or different lenders.

• Collateral: Collateral is something of value that's used to secure a loan. For installment loans, the collateral is usually the vehicle you're financing: your UTV, jet ski, etc. If you're not able to make your payments, the lender may seize the collateral, sell it and use that money to pay back the loan.
• Down payment: The amount of money you pay toward the overall purchase price of your powersports vehicle.
• Loan term: The term is the agreed-upon length of time to pay back the loan amount. Another way to think of it: it's the number of months or years you'll make payments until the loan is repaid. Loan terms may vary based on things like what you're financing and how old the vehicle is.
• Interest rate: Interest is a cost that a lender charges for letting you borrow money. It's a percentage of the amount you borrowed. Interest rates can vary depending on what you're financing, the loan term, the amount you put down, your credit score and other factors.
• APR: The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan.
• Depreciation: Depreciation is the amount of value that an asset loses each year. Most powersports equipment depreciates, meaning that it's worth less as it gets older. It's also worth noting that depreciation slows after the first few years.
• Credit approval: Most lenders require a credit check to determine an applicant’s creditworthiness for credit approval. It’s usually a review of your credit score.

Qualifying for loans

Lenders want to help make powersports vehicles accessible. Financing (rather than paying everything upfront) can mean that you get to enjoy your powersports purchase while paying over time.

When a lender reviews your loan application, they typically ask for your income and run a credit check. This information helps determine if applicants can make regular payments and if they have a history of paying back lenders.

How long can you finance powersports equipment?

One of the first things many buyers want to know is how long they can finance their snowmobiles, boats or personal watercraft. The short answer: it depends. They can range from 12 months minimum (for a motorcycle) to 20 years maximum (for a boat). And the length of the loan can impact your monthly payment.

Take a look at our Outdoors Powersports Estimator to see what those payments could like for you when you finance your vehicle at an enrolled powersports dealer with a Synchrony installment loan.*

*Offer subject to credit approval by Synchrony Bank.