Last Updated on January 8, 2024 by Britt Olizarowicz
A golf cart is a means of transportation for not only golfers but residents of communities alike. For this reason, people are in the market for golf carts across the country. However, golf cart prices continue to climb because they are in high demand, no matter if it is a new golf cart or a preowned golf cart. As a result of the high costs, the decision is often made to finance versus purchase outright because it is a significant investment. So, if you’re looking to finance the perfect golf cart, make sure you know how to do so properly by reading this complete guide.
Why Finance A Golf Cart
Golf cart financing is available, similar to that of a car. Consider it to be a means of transportation for more than just driving on the golf course in your private country club. Remember, financing is available for working-class families, the rich and the famous. Here are some of the primary reasons to finance a golf cart.
Private Golf Club Fees
Without question, joining a private country club comes at a cost. The combination of the initiation fee and monthly dues adds up quickly on month by month basis. To ease the burden on the monthly financials, it is always an option to agree on a financing plan when buying a new or used golf cart.
Means Of Transportation
I’ll be the first to admit that I use my golf cart as a means of transportation. My Club Car is pulled out of the garage more often than my vehicle. I use the cart to go to the grocery store, have dinner with friends and family, and enjoy the scenery.
You can consider a golf cart to be similar to a vehicle. For that reason, a golf cart loan is no different than a car loan if you’re using it on a regular basis. One of the most prevalent states for golf carts is Florida. The state of Florida is home to an abundance of golf communities. With that said you will have no trouble finding golf cart financing Florida.
Consider Your Credit History
Again, when comparing purchasing a vehicle to a golf cart, a lender will, without question, evaluate the status of the buyer’s credit. Chances are if you joined a country club, you’re in good standing when it comes to credit because, in some cases, country clubs will do credit checks.
In order to receive the lowest rates, it is imperative to have a low credit rating or FICO Score. The credit impact is significant if it is below the comfortable range for a lender.
Unfortunately, if you’re in a financial situation, it will be challenging to receive a loan to finance my cart. For the most part, lenders only approve loans for people with a credit score of 675 and above. On average, the majority of borrowers have a score ranging between 720 and 740.
You are more likely to have a lower monthly loan payment if your credit score is above 750. In most cases, a full credit report will be pulled by the lender to provide golf cart financing options. Remember, with low credit ratings, you are likely to pay higher interest rates if approved. For this reason, it is imperative to have consistent cash flow to avoid falling behind on monthly loan payments.
Golf Cart Financing Lenders
Without question, you will have a lot of options when it comes to sourcing financing lenders. Remember, you’ll want to be out on the golf course sooner rather than paying a membership fee while being held up completing paperwork for a golf cart loan.
When deciding on a lender, it is essential to compare interest payments. Despite having excellent credit worthiness, different lenders will offer varying rates. An important aspect of the decision-making process is using a loan comparison calculator. Here is a breakdown of the different lenders that you can take into consideration when buying a new or used golf cart.
Manufacturer Financing
One of the most notable financial institutions that provide loans for the purchase of new Club Car and EZ-GO golf carts is Sheffield Financial. Sheffield Financial is partnered with Club Car and EZ-Go. Both Club Car and EZ-Go are quality golf carts that are widely used in country club communities.
Take into consideration using Sheffield Financial; however, other lenders are available if you are willing to do some research. Depending on the amount of time you have, you are likely to find the best rate offer for your dream cart.
Credit Cards
Although I don’t like to carry a balance on my credit card, I prefer to use my card for big purchases because of the credit card rewards. It is always a good idea to determine the spending limit on your credit card in addition to the interest rates. In some cases, it can be a wise decision to use the card, while in others, it’s a bad decision.
However, similar to Sheffield Financial, Yard Card has also partnered with both EZ-GO and Club Car. Yard Card is a credit card that offers a revolving line of credit and offers a range of competitive financing options.
Personal Loans
One way to avoid using the newly purchased golf cart for collateral is by applying for and receiving a personal loan. Often, you can get timely service by visiting your local bank that you regularly do business with.
It is a good rule of thumb to ask about all of the financing options available when it comes to a personal loan. However, before signing on the dotted line, read the fine print. You don’t want to get yourself involved in a balloon type loan that will cost you more money as the loan matures.
Home Equity Line Of Credit
It is not uncommon for homeowners to have an open home equity line of credit, otherwise known as a HELOC. Having a HELOC allows you to borrow against the equity in your home. For the most part, you are able to get a lower interest rate and often a longer term length based on the number of years left on your line of credit. This a great option if you recently paid a high country club initiation fee.
Finance A Golf Cart
Some of the best golf carts are becoming available, considering the advancements in technology. Without question, the answer is yes to can you finance a golf cart. Remember to shop for the best monthly rate before making a decision. The application process can be lengthy; however, in some cases, you may receive instant finance offers. Be sure that the monthly payment fits your budget so that you do not stretch yourself thin. This is especially the case when you’re paying membership fees in addition to food and beverage expenditures.
