Do you qualify for a ATV, Jetski, Side by Side or Motorcycle loan? Find out and get approved now!

Powersport loans are different from conventional loans because you are financing something you want rather than a vehicle you need. Fortunately Broward Motorsports of Miami can make this process seamless and simple for you.  Broward Motorsports Miami works with over 10 financing institutions with the ability to get just about everyone into a powersports vehicle. 

The First Step

To qualify for a recreational loan, you'll need to check your credit score. Generally, higher scores are more likely to get approved with lower interest rates. A credit score in the low 700 range is good but a lot better if your score is above 720. A fair credit score is in the range of 580 and 680, and it's considered bad if it's between 300 and 580. It's tough to get a powersport loan with bad or no credit.   Websites like Credit Karma will give you this information for free!  We also recommend Broward Motorsports Miami's credit app center that will put you into contact with a finance rep and help you get into a vehicle quickly.

What is your Budget

Next is to establish your budget. Lenders are interested in two ratios to determine if you qualify for a loan. These two ratios are your debt-to-income ratio, or DTI, and the loan-to-value ratio or LTV. You'll have better chances of getting approved if these two ratios are lower.  It compares how much you spend to how much you make each month. Your DTI is good if it is below 36%, but some lenders will approve ratios as high as 50%. You can use the following formula to determine your DTI ratio: Your current monthly debt payments ÷ Your monthly gross income = DTI.  Lenders consider how much you're borrowing versus how much the vehicle is worth, which is the LTV ratio. LTV higher than 100% is usually too risky for lenders. For a lower LTV, you should try to get a better price from the dealer you're buying the vehicle from. You can check the vehicle's market value for free online at Kelley Blue Book and NADAguides. This formula is to figure out the LTV ratio: The total amount you're borrowing ÷ The vehicle's value = LTV Ratio

Documents and getting an Approval

The lender will require you to have your identification, income, proof of residence, cosigner information and documents ready to go for qualification. Finally, you should get a pre-approval directly from a lender before going to a dealership to buy the vehicle. Dealers don't lend you the money, but they can raise the APR rates for customers as the middleman between you and the lender during negotiations.  If you follow these steps, have a good credit score, and lower DTI and LTV ratios, you should have no problems getting approved for a recreational loan.