Golf Cart Financing: What You Need to Know Before Applying
Golf carts have exploded in popularity over the past 15 years, for both golf and practical family purposes. And as golf carts have gotten more advanced to meet customer demands, purchasing a golf cart has become a significant investment for most consumers. That's where golf cart financing comes in to help. Before you apply for financing of your golf cart, it's essential to understand the entire process and what factors you need to consider so you don't take an unnecessary hit to your credit report! In this article, we will cover the costs of financing versus paying cash for your cart, how financing new and used golf carts differs, and what to keep in mind before applying for golf cart financing.
Costs of Financing vs. Paying Cash
When considering whether you should finance your golf cart purchase or pay cash, you should weigh the advantages and disadvantages of both options. Here are some things to consider:
- Interest Rates: Financing a golf cart typically involves paying interest on the loan. The interest rate depends on factors such as your credit score, the loan term, and the lender, as well as current economic environment. Paying cash eliminates interest payments, which will save you money in the long run.
- Down Payments: A down payment is required for almost all financing options. The amount you'll need to put down varies depending on the lender you choose and your credit history. Paying cash eliminates this consideration.
- Monthly Payments: Financing your golf cart means committing to monthly payments for the duration of the loan term. This can be a significant financial obligation, depending on the loan term and interest rate. You may have strong income now, but a layoff or career change can affect your ability to pay and put you in hot water! Paying cash eliminates the need for monthly payments, providing financial flexibility for you and your family.
- Ownership: When you finance a golf cart, the lender technically owns it until the loan is paid off. With cash purchases, you own the golf cart outright from the start.
To explore your financing options, visit our golf cart financing page for more information, instant approval and competitive rates.
Financing New vs. Used Golf Carts
Financing a new golf cart can be easier than financing a used one. Here's why:
- Lenders' Preferences: Lenders are more likely to approve financing for new golf carts because they tend to have lower risk. New golf carts come with warranties and are less likely to require repairs, making them a more secure investment for lenders.
- Better Interest Rates: New golf carts generally qualify for lower interest rates than used ones. This is because new carts are considered less risky and less depreciated assets.
- Loan Terms: Loan terms for new golf carts are often more flexible and can be extended over a longer period when needed, resulting in easier (lower) monthly payments for you.
- Warranties: New golf carts come with manufacturer warranties, which can be an added benefit when compared to used carts that may have limited warranty coverage or no warranty coverage at all.
However, financing a used golf cart can still be a viable option for those on a budget. Be prepared to shop around for the best interest rates and loan terms, and consider purchasing a warranty for added protection.
Summing It Up
When considering golf cart financing, it's essential to understand the costs associated with financing versus paying cash, as well as the differences between financing new and used golf carts. By carefully weighing your options and doing thorough research, you can make an informed decision about the best way to purchase your golf cart. Remember to check out our financing page to explore your financing options and find the perfect golf cart for your needs!
Author: GCS Expert Staff
Date: 4-13-2023