Snowmobile Loans: Complete Guide

Posted by in Loans | Updated on May 30, 2023
At a Glance: To finance a snowmobile, you can apply for a snowmobile loan with lenders such as Upstart, Upgrade, or Lightstream. You can also go for dealer financing for the best rates. Credit cards are an option, but not recommended due to the high interest.

Not everyone loves winter, but those who are fans of this season like to engage in various fun activities. Sometimes, this involves the use of a snowmobile. According to statistics, there are 1.3 million registered snowmobiles in the U.S., showing that Americans simply love these vehicles.

If you want the fun times to continue even during freezing temperatures, chances are that you’re thinking of purchasing a snowmobile and joining your friends. But these vehicles are not that cheap, and if your income is on the lower side, you will have a hard time looking for a snowmobile that fits your budget.

So, you may be thinking of applying for snowmobile loans. Are they readily available, though? Let’s find out.

Can a Snowmobile Be Financed?

Snowmobiles are used to indulge in some fun and adrenaline during the winter season. However, this is not their sole purpose. In fact, they can be very useful to ranchers, farmers, ski patrols, postal delivery workers, government services, and the military for transportation purposes. Whether you want one for transportation or fun, you may be unsure if there is any financing for these vehicles.

Fortunately, there are ways to finance a snowmobile. Obtaining the funds is similar to financing a passenger car or motorcycle. Snowmobile loans are actually very common, so you will not have a hard time finding one.

All you need is to meet the requirements of the lender, bank, or credit union and you’re set.

3 Best Snow Mobile Loans

When it comes to snowmobile loans, you have different options, with each one of them having unique requirements and rates. Here are some of the choices available for financing your snowmobile:


Upgrade is a great choice if you don’t have the best credit score. The credit score requirement for them is 580, so you don’t need to worry if you have fair or bad credit. You should know that they perform a soft credit pull when checking the rates, though.

If you go for Upgrade, you’ll be able to borrow anywhere between $1,000 and $50,000, and the money will be deposited the very next day. What’s great is that the company offers flexible repayment terms. So, based on your budget, you can change your payment dates and make your repayment process easier to handle.

Upgrade does charge an origination fee between 1.85% and 8%, and a late fee of $10, though.


People who want a snowmobile loan can also opt for LightStream, especially if they need more money for their desired snowmobile and they have a better credit score.

LightStream is pretty popular, as they have loans for most things. You need a credit score of at least 660 to get their approval, but you can get between $5,000 and $100,000 for your loan. You’ll get the amount the next day.

Repayment terms range from 24 to 144 months. There is no late fee or origination fee. And if you set up autopay, you will get a 0.50% reduction in your interest rate.


Lastly, we have Upstart – an online lending platform that approves individuals even with a fair or bad score. The lender takes a look at different factors to determine whether you are qualified for the loan or not. These include employment, education, and many others.

Loan amounts go from $1,000 to $50,000, and you will get a repayment term of 36 or 60 months.

There is a late fee of $15 or 5% of the payment, as well as an origination fee of 0% – 8%.

Other Snowmobile Financing Options

If you don’t want to go for a personal loan, don’t worry – there are some different ways to get finances for your dream snowmobile. Let’s take a look at what they involve:

Dealer Financing

Dealer financing is another very popular way to get money for a snowmobile. These finances can be obtained either from a lender directly or from a power equipment dealer who has a partnership with the lender. Some manufacturers even have special factory financing.

Getting loans through power equipment loan specialists is not that rare. It is very convenient, as it can provide you with finances for many vehicle types, such as watercraft, motorcycles, snowmobiles, and more.

Therefore, you should consider asking a dealership whether they have any financing options available. It’ll make it easier to obtain that snowmobile you want so much. Don’t hesitate to compare the rates of different dealerships, though. This way, you can make sure that you end up with the best deal.

Credit Cards

Credit cards are also an option, especially if this is your preferred method or the only one you can use at the moment. In fact, there are many individuals who buy snowmobiles with a credit card.

Using a credit card can be pretty convenient if you can get a balance transfer credit card that has an introductory period with 0% APR. Otherwise, it will be a burden, as the interest rates will be pretty high, and your debt will be overwhelming.

How Much Does a Snow Mobile Cost?

Snowmobiles are pretty expensive, but their price is influenced by a few factors, such as the type of snowmobile, manufacturer, as well as additional equipment and gear.

If you are new to snowmobiles, you can get a four-stroke vehicle with 120cc for $3,000. It’s not much, so it might be easier for you to obtain this snowmobile.

However, those who are already experienced with snowmobiles may want something faster and stronger. For such models, you can expect to pay around $9,000 on average, especially if you want a snowmobile with two seats.

On top of the actual snowmobile, you will also need protective clothing. Something of decent quality will cost you at least $800.

Considerations Before You Finance a Snowmobile

You may be eager to get on your new snowmobile, but before using snowmobile loans or a different type of financing to get one, there are some things to take into account.

For instance, you’ll have to pay an interest rate, which can be pretty high. For this reason, you must spend some time looking for the best rates by comparing lenders. Credit unions can usually help you figure out whether you can afford the monthly payment.

Besides, you might need a good credit score. While there are lenders that are willing to accept lower scores, don’t rely on this. Your score should be higher than 580.

When you buy a snowmobile, you also need to consider the cost of ownership or COA. It will tell you how much you need to pay for repairs and maintenance annually.

Snowmobile Loans FAQ

Here are some frequently asked questions regarding snowmobile loans:

What is the best way to finance a snowmobile?

The best way to finance your snowmobile is by applying for a personal loan or getting dealer financing. Dealer financing is especially convenient, as you can end up with the best deal.

Do I need a warranty on a snowmobile?

You need no warranty on a snowmobile.

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The Bottom Line

Snowmobile loans are available for anyone who needs them. Make sure to find the best option in terms of financing for snowmobiles and you’ll have your dream vehicle in no time.