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Tips for Financing Your Golf Cart

Nov. 9 2021 Buying Guide By Quality Golf Carts

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If you’re on the hunt for a compact, convenient, and comfortable way to get around the golf course, neighborhood, or campus, then you need a golf cart. Unfortunately, as affordable as they can be, a golf cart is still a big investment, and it can be hard to pay it all off at once. We here at Quality Golf Carts want you to know all your options, so we’ve put together some tips for financing your golf cart purchase, below. To learn more, or to talk to our financing experts, contact our store in Rock Hill, South Carolina, today!

Create a Firm Budget

Your first step in this and any financial decision is to create a firm budget. This will help you understand how much you can afford to spend, and should keep you from getting too set on a model that’s out of your current price range. Try to see how much you can afford to pay up front, then how much you’ll be able to pay monthly. Just remember to include money for insurance, accessories, storage, fuel, and maintenance into your total budget!

Down Payment

Most loans require a down payment, so it’s a vital part of your budgeting strategy. On average, the minimum down payment needs to be between 10-20% of the full cost of the golf cart. The larger the down payment you place on the cart, however, the lower your monthly installments and interest rate will be.

Insurance

Most lenders will want to see that you have an insurance package lined up before they’ll approve a loan for you. Explore your insurance options and factor that into your budget before the financing process starts. Remember to cover everything you can reasonably afford!

Boost Your Credit Score

Your credit score plays a big part in determining just what kind of loan you qualify for. If yours is a bit lower than you’d like, try paying off a few credit cards before starting the process of buying your golf cart. That should kick your score up a few digits and show lenders you can be responsible with money.

Loan Types

The loans themselves will come in many shapes and sizes, but they can be broadly divided into two groups. The first is secured loans, which:

  • Don’t require a stellar credit score.
  • Have higher loan amounts.
  • Have long repayment periods.
  • Have lower interest rates.

The drawback is that secured loans use the golf cart as collateral, so defaulting on your payments might lead to the cart being repossessed. 

The other loan type is unsecured, which:

  • Require higher credit scores.
  • Have short repayment periods.
  • Have high interest rates.

That said, secured loans don’t use the cart as collateral, so defaulting won’t necessarily lead to repossession. However, it can still lead to penalties, a lowered credit score, and potentially lawsuits.

Ready to explore your financing options? Contact our financial experts here at Quality Golf Carts. We proudly serve the people of Charlotte, North Carolina—let us serve you today!