A Comprehensive Guide to Golf Cart Financing

Are you considering a golf cart purchase but unsure about the financial logistics? You’re not alone. Whether you’re looking to buy a new golf cart or pre-owned, understanding the nuances of golf cart financing can help you make an informed choice that aligns with your budget and needs.

This article will guide you through the most common FAQs about golf cart financing, compare financing versus paying cash, highlight key loan terms to consider, and offer insights on how to apply for a golf cart loan.

3 Most Common FAQs about Golf Cart Financing

Is financing available for new and pre-owned golf carts?

Yes! While terms and conditions may vary among lenders, financing options are generally available for both new and used golf carts. This allows buyers the flexibility to choose a golf cart that suits their needs and budget.

What’s the best golf cart loan term?

When it comes to golf cart loan terms, it’s never a one-size-fits-all situation. The ideal loan term balances interest rates and monthly payments in a way that makes you feel financially comfortable. While lower monthly payments may be more manageable, they often come with longer loan terms, and shorter terms typically mean higher monthly payments. Generally, the most common golf cart loan terms range from 36 to 72 months.

What’s the minimum credit score required to finance a golf cart?

Credit score requirements vary by lenders. In most cases, lenders prefer a score of at least 650, but some may work with scores as low as 550. A higher credit score often leads to better interest rates and loan terms. If your credit score is on the lower end, you may still have options, but be prepared for potentially higher interest rates or stricter terms.

Financing a Golf Cart vs. Paying Cash

Many buyers choose to finance their golf carts because they can’t afford to pay the full golf cart cost upfront. Financing offers the advantage of a smaller initial payment and spreads the cost over time. However, it comes with additional expenses through interest and delays full ownership. 

Here’s a quick comparison between financing a golf cart and paying cash:

Thinking About Financing a New Golf Cart? We’ve Got Some Good News!

A golf cart’s cost often plays a crucial role in deciding between new and used models. While the pros and cons for each alternative are clear, financing can be an attractive solution for those leaning toward purchasing a new golf cart.

If you’re considering this option, you might be happy to know that lenders are generally more inclined to approve financing for new golf carts. This is because new golf carts come with zero mileage, no accident history, modern technology, and manufacturer warranties (like when buying a golf cart with Trojan batteries). As such, new golf carts are considered a “safer” investment from a lender’s perspective. Consequently, you may find more favorable loan terms and interest rates when financing a new cart compared to a used one.

That said, and as was established earlier, financing is also available for used golf carts. Still, it’s advisable to purchase a warranty for added protection and thoroughly research the best loan terms available.

Three Important Loan Terms to Look At

Before signing on your golf cart loan, here are three essential loan terms to look at:

Credit Approval

Just like any other loan, your creditworthiness is evaluated when you apply for golf cart loans. Lenders will assess your credit score, debt-to-income ratio, and other financial factors. The better your credit profile, the more favorable loan terms and interest rates you can secure.

Minimum Purchase Requirements

Some lenders may set a minimum purchase requirement for golf carts, meaning the cart must meet a certain value to qualify for financing. If your desired cart’s price is lower than this bar, you’ll have to pay the difference yourself or find another lender. 

Prepayment Penalties

Some lenders impose prepayment penalties if you pay off your loan early. Be sure to understand your lender’s policy to avoid any unexpected fees down the road.

How to Apply for a Golf Cart Loan?

Golf cart buyers have various financing options, including traditional bank loans, credit cards, and personal loans. To simplify the process, many golf cart dealerships partner with several specialized financing companies, allowing buyers to apply online. With this option, golf cart buyers will know whether they’re approved within seconds and receive a certificate with the loan amount and credit line. It’s important to note, however, that if you’re purchasing a golf cart from a private seller, in-house financing won’t be available, so you’ll need to arrange financing independently.

Sheffield Financial and Yard Card are two of the most popular financing options offered by golf cart dealerships, including by Garrett’s Golf Cars. However, keep in mind that loan terms and approval requirements can vary between lenders and dealerships. For example, at Garrett’s Golf Cars, Sheffield Financial provides financing only for new carts, whereas Yard Card – which involves a revolving credit card program – provides financing for both new and used carts, potentially with a minimum purchase requirement depending on the model. 

To get the best loan terms, take the time to research and apply for several golf cart loans from different lenders. Pre-qualifying for a loan is free and does not affect your credit score. Ensure you secure a loan that allows you to enjoy your golf cart without financial strain. 

Explore Flexible Golf Cart Financing with Garrett’s Golf Cars

If you’re ready to explore financing options, Garrett’s Golf Cars offers a variety of solutions tailored to suit different requirements. To learn more about our financing options and how we can help you get the golf cart you desire, please reach out to us today. Our team is here to guide you through the process and answer any questions you may have.