Golf Cart Financing Guide
If you need a little help with purchasing a golf cart, financing is a great option. It helps defray the expenses so that you can get the cart you want, when you want it. Problem is, some people are hesitant to take advantage of golf cart financing because they do not fully understand it.
That is why Etto Leisure Cars has created this guide to golf cart financing!
Make a Budget
The best place to start is by creating a budget. Look up golf cart prices online to get a rough idea of how much your cart will cost overall. Then use a financial calculator to figure out how much of the loan you can afford to pay off each month. This first step will give you a clear picture of your financial commitment.
As an aside, do not forget to include additional costs like insurance, accessories, and storage in your budget. These extra fees can add up quickly and lead to you spending more money than you expected. For instance, high-end accessories or specialized storage solutions can significantly increase your total expenditure.
Save Up a Down Payment
Your typical loan will expect a down payment of 10 to 20% of the overall cost upfront, and some make the largest down payment that they can afford, as this will mean less interest paid in the long run. (A substantial down payment reduces the principal amount of the loan, thereby lowering monthly payments and overall interest costs.)
Check Your Credit Score
Many lenders will want to look at your credit score before giving you a loan. If your current credit score is not as strong as it could be, take some time to improve it before taking out a golf cart loan. You may even get more favorable terms.
Improving your credit score could involve paying down existing debts, correcting any errors on your credit report, and avoiding new credit inquiries.
Find Insurance
Many lenders require that you have an insurance package lined up for your golf cart before they will give you a loan. Take the time to look at your insurance options and pick one that is right for you. Insurance protects your investment from unforeseen circumstances like theft, damage, or accidents.
Research Lenders
Not all lenders offer the same terms, interest rates, or loan conditions. Spend some time researching various lenders to find one that offers the best deal for your financial situation. Look into credit unions, banks, and specialized golf cart financing companies. Compare their interest rates, customer reviews, and the flexibility of their loan terms.
Understand Loan Terms
Make sure you fully understand the terms of your loan. This includes the interest rate, repayment schedule, and any penalties for late payments. Knowing these details can help you avoid any unexpected surprises down the road. For example, some loans may have prepayment penalties or variable interest rates that could increase your monthly payments over time.
Consider Pre-Approval
Getting pre-approved for a loan can give you a better idea of what you can afford and streamline the buying process. Pre-approval shows sellers that you are a serious buyer and can help you negotiate a better price. It also provides you with a stronger bargaining position, as you already have secured financing.
Assess the “Total Cost” of Ownership
Beyond the initial purchase and financing, consider the total cost of owning a golf cart. This includes cart maintenance, repairs, and potential upgrades over the years. Regular maintenance is essential to keep your golf cart in top condition and avoid costly repairs. Factor these costs into your overall budget to ensure you can comfortably afford your golf cart in the long run.
Explore Different Financing Options
There are various financing options available, from traditional loans to leasing. Leasing a golf cart might be a suitable option if you prefer lower monthly payments and the ability to upgrade to a newer model every few years. Evaluate the pros and cons of each financing method to determine which one aligns with your financial goals and lifestyle.
We here at Etto Leisure Cars are proud to offer golf cart financing, as well as customization, servicing, and parts ordering. We also have a selection of new and pre-owned golf cart models. You can visit us at one of our four locations throughout South Carolina, with two in Mt. Pleasant, and one in Charleston and Summerville, respectively. We hope to hear from you soon!