Vehicle Financing Guide

Auto loans are the most competitive and straightforward vehicle financing product. Loan terms of 36–84 months, APRs that track closely with the Fed Funds rate, and abundant competition among banks, credit unions, and online lenders create favorable conditions for prepared borrowers. Credit unions consistently offer the best auto loan rates — apply for pre-approval before visiting a dealer. Capital One Auto Finance, LightStream, and PenFed are also competitive online options. Dealer financing is convenient but carries a markup; use it only when the dealer offers a promotional rate (0% or low-APR manufacturer offers) that beats your credit union.

RV and boat loans are similar to auto loans but with longer available terms (up to 20 years for larger loans) and more specialized lenders. Essex Credit, Southeast Financial, Good Sam Finance Center, and credit unions with active marine/RV departments are the best sources. Because RV and boat values depreciate quickly in the first 3–5 years, a down payment of 15–20% protects you from being underwater on the loan. A used RV or boat may have lender age restrictions (most lenders won't finance units over 10–15 years old) and loan minimums (typically $10,000–$15,000).

Motorcycle, ATV, and snowmobile loans are typically shorter-term (24–72 months) and at higher rates than car loans because powersports vehicles depreciate quickly and are seasonal use items for most buyers. Dealer financing is common in the powersports market — many dealers have relationships with manufacturer captive finance arms (Harley-Davidson Financial, Can-Am Finance, Honda Financial Services) that offer promotional rates on new machines. For used powersports purchases, credit union personal loans or used motorcycle/ATV loans are often the most practical financing tool. Lightstream offers competitive unsecured personal loans for powersports at competitive rates.