When it comes to the world of off-road adventures, few names resonate as strongly as Can-Am. Known for its impressive range of all-terrain vehicles (ATVs), side-by-sides, and three-wheeled motorcycles, Can-Am has long been a favorite among outdoor enthusiasts who seek thrill, performance, and durability. However, whether you’re eyeing a new Can-Am Maverick, a Can-Am Outlander, or one of their innovative Spyder motorcycles, the question of how to finance your purchase can be just as important as picking the right model.
Can-Am financing is designed to provide buyers with a variety of options to fund their dream vehicle without the stress of paying the full price upfront. Whether you’re looking to finance through Can-Am itself, explore third-party lenders, or seek out special promotions and deals, understanding your options is key to making an informed decision.
In this article, we’ll take an in-depth look at Can-Am financing, the available methods, common terms and conditions, and tips to ensure you get the best deal possible. We’ll also address key factors such as credit requirements, down payments, and interest rates, giving you a clear path toward purchasing your Can-Am vehicle without breaking the bank.
Understanding Can-Am Financing Options
When it comes to financing a Can-Am, there are several routes you can take, each with its own set of benefits and challenges. Below, we’ll explore these options in detail to help you determine which one might work best for your financial situation and goals.
1. Can-Am’s In-House Financing
Can-Am offers financing options directly through its financial services, typically managed by BRP (Bombardier Recreational Products) Financial Services. These financing plans are tailored specifically for Can-Am customers, making it a popular option for buyers who want a straightforward and brand-specific loan arrangement.
How Can-Am Financing Works:
When you finance through Can-Am’s financial arm, the application process is typically completed through your local Can-Am dealership. You’ll submit a credit application, and BRP Financial Services will review your creditworthiness to determine your eligibility. Based on your credit profile, the financial service will present you with different loan terms, interest rates, and repayment options.
Advantages of Can-Am Financing:
- Brand-Specific Promotions: Can-Am often offers exclusive financing promotions, such as low-interest rates or extended repayment terms, to customers who choose to finance through their services. These promotions can make financing more affordable, especially during sales events.
- Dealer Incentives: Many Can-Am dealers work closely with BRP Financial Services and may offer additional incentives for buyers who finance through Can-Am, such as free accessories or discounts on extended warranties.
- Specialized Knowledge: Because Can-Am’s financial services are designed specifically for their products, you’ll often find that the dealership staff is more knowledgeable about your financing options and can help tailor the loan to your needs.
Considerations:
- Credit Requirements: Like any other lender, BRP Financial Services will require a credit check, and your interest rate and loan terms will depend on your credit score. If you have a lower credit score, you might be offered less favorable terms, such as a higher interest rate.
- Down Payment Requirements: While Can-Am financing may allow for little to no down payment, a larger down payment can lower your monthly payments and total interest over the life of the loan.
2. Third-Party Financing Options
While financing directly through Can-Am has its advantages, it’s not the only option available. Many customers choose to finance their Can-Am purchase through third-party lenders, such as banks, credit unions, or online lenders.
How Third-Party Financing Works:
With third-party financing, you apply for a loan through an external lender rather than Can-Am’s in-house financial services. The process involves securing a loan amount equal to the price of the Can-Am vehicle you wish to purchase, with the lender paying the dealer directly. You’ll then repay the lender through monthly installments.
Advantages of Third-Party Financing:
- Competitive Interest Rates: Depending on your credit score, you may be able to secure a better interest rate from a third-party lender than through Can-Am financing, especially if you’re an existing customer at a bank or credit union.
- Pre-Approval Flexibility: Many third-party lenders allow you to get pre-approved for a loan, giving you more bargaining power when negotiating with Can-Am dealerships. Knowing how much you’re approved for beforehand can simplify the buying process.
- Personalized Loan Terms: Some banks or credit unions may offer more flexible loan terms, allowing you to choose repayment periods that align better with your financial goals.
Considerations:
- Lender Limitations: Not all lenders will offer financing for recreational vehicles like ATVs and side-by-sides. Be sure to ask about specific loan products for powersports or recreational vehicles when inquiring.
- No Access to Dealer Incentives: Financing through a third-party lender may mean that you miss out on any dealer incentives or Can-Am-specific promotions that are tied to their in-house financing options.
3. Credit Union Financing
Credit unions are known for offering lower interest rates and more flexible loan terms than traditional banks. If you’re a member of a credit union, this can be a particularly attractive option for financing your Can-Am vehicle.
Advantages of Credit Union Financing:
- Lower Interest Rates: Credit unions often have lower interest rates than banks and other third-party lenders, making your loan more affordable over the long term.
- More Flexible Loan Terms: Credit unions are typically more community-focused and can offer personalized loan terms that cater to your financial situation.
- Better Service: Many credit unions pride themselves on providing exceptional customer service and may be more willing to work with you on customized financing solutions.
Considerations:
- Membership Requirement: To take advantage of credit union financing, you’ll need to be a member. While membership requirements are often lenient, this can still be a hurdle for some buyers.
- Availability of Powersports Loans: Not all credit unions offer financing for recreational vehicles like Can-Am ATVs or side-by-sides. Be sure to confirm that your credit union provides loans for powersports vehicles before applying.
Key Factors in Can-Am Financing
Once you’ve chosen your financing method, there are several key factors to consider as you prepare to sign your loan agreement. Understanding these aspects will ensure that you’re getting the best deal possible and that you’re fully aware of your financial responsibilities.
1. Interest Rates
Interest rates are a critical factor in any loan, as they determine how much you’ll pay in addition to the vehicle’s purchase price. In general, the interest rate you’re offered will depend on several factors, including your credit score, the length of the loan, and the lender you choose.
How to Get the Best Interest Rate:
- Improve Your Credit Score: If you have a lower credit score, take steps to improve it before applying for financing. Paying down debt, avoiding late payments, and reducing your credit utilization can help increase your score.
- Consider a Shorter Loan Term: While longer loan terms often mean lower monthly payments, they typically come with higher interest rates. Opting for a shorter loan term may result in a lower interest rate and less interest paid over the life of the loan.
- Shop Around: Don’t be afraid to shop around for the best interest rate. Compare offers from multiple lenders, including Can-Am’s in-house financing, banks, and credit unions.
2. Down Payments
While some Can-Am financing options allow for zero down payments, it’s often a good idea to put money down when purchasing a recreational vehicle. A larger down payment can help lower your monthly payments and reduce the total interest paid over the life of the loan.
Benefits of a Down Payment:
- Lower Loan Amount: A larger down payment means you’re borrowing less, which can reduce your monthly payments and make the loan more manageable.
- Better Loan Terms: Putting money down can make you a more attractive borrower, potentially leading to better loan terms, such as a lower interest rate.
- Build Equity Faster: With a higher down payment, you’ll build equity in your vehicle more quickly, which can be beneficial if you plan to sell or trade in the vehicle before the loan is paid off.
3. Loan Term Length
The length of your loan term determines how long you’ll have to pay off the loan, as well as the size of your monthly payments. Loan terms for Can-Am financing typically range from 24 to 84 months.
Choosing the Right Loan Term:
- Short-Term Loans: Shorter loan terms, such as 24 or 36 months, will result in higher monthly payments but less interest paid overall. If you can afford the higher payments, this option may save you money in the long run.
- Long-Term Loans: Longer loan terms, such as 60 or 72 months, will result in lower monthly payments but higher interest paid over the life of the loan. If you need a more affordable monthly payment, this option may be more suitable for your budget.
4. Promotional Offers
Can-Am frequently offers promotional financing deals, especially during peak sales seasons or product launches. These promotions may include low-interest financing, deferred payments, or cash rebates. Be sure to ask your Can-Am dealer about any current promotions that may be available.
How to Take Advantage of Promotions:
- Timing is Key: Keep an eye on promotional periods, such as during holiday sales or at the end of the year when dealers are looking to clear out inventory.
- Eligibility Requirements: Make sure you meet any eligibility requirements for the promotion, such as credit score thresholds or down payment minimums.
Tips for Securing the Best Can-Am Financing Deal
Now that you understand your financing options and the key factors involved, here are some practical tips to help you secure the best financing deal for your Can-Am purchase:
1. Check Your Credit Score Before Applying
Your credit score plays a significant role in determining your loan terms, including your interest rate. Before applying for financing, check your credit score to see where you stand. If your score is lower than you’d like, take steps to improve it before applying.
2. Get Pre-Approved
If you’re financing through a third-party lender, consider getting pre-approved for a loan before you start shopping for your Can-Am vehicle. Pre-approval gives you a clear understanding of your budget and loan terms, and it can also give you leverage when negotiating with dealers.
3. Negotiate the Purchase Price
Even if you’re financing, it’s still important to negotiate the purchase price of your Can-Am vehicle. Many dealers are willing to negotiate, especially if you’re paying a larger down payment or have secured pre-approved financing.
4. Consider the Total Cost of Ownership
When budgeting for your Can-Am vehicle, be sure to consider the total cost of ownership, including insurance, maintenance, and accessories. These additional costs can add up over time, so it’s important to factor them into your financing decision.
5. Read the Fine Print
Before signing any loan agreement, carefully review the terms and conditions. Make sure you understand the interest rate, loan term, down payment requirements, and any potential fees. If anything is unclear, don’t hesitate to ask your lender or dealer for clarification.
Conclusion
Purchasing a Can-Am vehicle is an exciting investment in your outdoor adventures, but it’s important to carefully consider your financing options to ensure that you’re making the best financial decision. Whether you choose to finance through Can-Am’s in-house services, a third-party lender, or a credit union, understanding the key factors such as interest rates, down payments, and loan terms will help you secure the best deal possible.
By taking the time to explore your financing options, improve your credit score, and negotiate with dealers, you can enjoy your new Can-Am vehicle without the stress of overpaying. With careful planning and smart financing, you’ll be hitting the trails in no time, fully equipped for your next off-road adventure.
