Financing Alternative Vehicle Expenses

Does Discover offer auto loans?
Motorcycle expenses
RV expenses
ATV expenses
UTV expenses
Boat expenses
Expenses for other recreational vehicles
Using a personal loan for vehicle expenses

Does Discover offer auto loans?

Discover does not offer auto loans. If you are looking for an auto loan, Discover is now a part of Capital One, who does offer auto financing.

How is a personal loan different from an auto loan?

Traditional auto loans are typically secured loans that help you finance your car or truck. When you take out an auto loan, you will get a lump sum of money to buy your vehicle and then will make monthly payments with interest until it’s paid off. It’s important to note that the lender holds the title of the car until you fully repay the loan and can repossess it if you miss payments.

This is different than a personal loan which is an unsecured installment loan that can be used for almost any purpose. You’ll still get a lump sum and will pay it back monthly with interest, but since there’s no collateral, the lender will not hold the title of your car.

Can a personal loan be used for auto financing?

Personal loans can be used for essentially any purpose—including buying a car. While auto loans are typically offered through dealerships and tied to a specific vehicle, a personal loan can be used to finance a car bought from anyone, like a dealer, an auto auction, or from a private seller. This may make a personal loan a better fit if you’re buying privately and do not have the full cash amount.

Using personal loans for a car can be more flexible than other options, but loan limits may make them less suitable for expensive new vehicles. They’re also not secured by collateral like auto loans, so they may have a higher APR.

That’s why it’s important to understand your full financial situation before deciding which to use.

Beyond a car or truck, personal loans can also be used for other vehicles. Continue reading to learn about loan options for your alternative vehicles and their related expenses.

Motorcycle expenses

You’ve taken the safety courses, updated your license, and spent a lot of time cruising the showrooms or window-shopping. Now you’re ready to get your motorcycle and hit the open road.

Some motorcycles may be cheaper than even the least expensive economy cars. But a beginner bike, plus the cost of the personal protective gear to go along with it, might cost more than the cash you have on hand. A personal loan could help you bridge the gap between the full cost of the motorcycle and the cash you currently have.

As you think about the expenses involved, consider building a budget for additional gear and costs:

Helmets for yourself and a passenger
Other safety gear, including jackets, shoes, gloves, and more
Cold-weather and wet-weather gear
Routine maintenance

RV expenses

Some recreational vehicles (RVs) may not cost as much as a typical home, but large or luxury-outfitted RVs can cost between $50,000 and $2 million. The costlier the RV, the longer the loan repayment terms might be. Most RV loans last between five and seven years, but loans for larger models can go as long as 20 years.

Whether your goal is to pull up roots and take to the open road permanently or to have a small motor home for weekend camping and festival trips, an RV loan may be a serious commitment. Owning an RV may also involve covering additional costs:

Cleaning fees
Parking fees, slip rentals, and campground fees
Maintenance
Utilities

With these additional costs in mind, the flexibility of a personal loan may help cover the expenses needed to get your RV ready.

ATV expenses

All-terrain vehicles (ATVs) can make for hours of fun blazing new trails and off-road racing. Or these versatile vehicles can be used for work, such as inspecting crops, herding livestock, or supervising field crews. Whatever the reason you might invest in an ATV, the hard, off-road usage can mean a lot of unexpected maintenance that may need a personal loan to help pay off.

You can expect to pay between $4,500 and $15,000 or more for a new ATV, but there are additional expenses to consider on top of the purchase price:

Maintenance
Safety gear
Accessories
Trailer

UTV expenses

If you’re in the business of hauling heavy equipment or supplies to locations that a truck can’t easily reach, you may be in the market for a utility task vehicle (UTV). Also known as side-by-sides, UTVs are built with larger engines, sturdier bodies, and more capacity than standard four-wheelers.

A new UTV can cost anywhere from around $8,000 to well over $30,000. Also, think about budgeting for other expenses that could come with owning a UTV:

Registration fees
Maintenance
Safety gear
Accessories
Engine modifications
Trailer

The ability to use personal loans for anything opens up the possibility of using them for things like registration fees, accessories, trailers, and more of the above that a classic auto loan could not.

Boat expenses

There are many types of boats and many reasons to desire one. You may want a fishing boat for a lazy day on the river, a cabin cruiser for an extended trip, a pontoon boat for lake parties, or a jet ski for watersports.

Whatever your reason, when it comes to buying a boat, you have no shortage of options. A personal loan could help cover the upfront cost, and the related expenses afterward. There’s an equally wide range of price options, which can run from around a thousand dollars for a small fishing boat to millions of dollars for a yacht. Owning any type of boat can come with additional expenses:

Boating license
Maintenance
Trailer
Storage
Marina fees
Safety gear
Accessories
Safety education courses

Expenses for other recreational vehicles

More and more, commuters and outdoor enthusiasts alike are choosing other options for daily travel and exercise, including motor scooters and electric bikes. While the prices for the vehicles themselves and associated costs may vary, a personal loan could be a great option to cover the cost, especially considering these vehicles may save money in the long term.

Motor scooters

City dwellers may be keen to zip around on these. Many motor scooters are less costly and create less pollution than motorcycles, though they have similar gear requirements. Still, the cost of a new motorized scooter can range from a couple of hundred dollars to more than $5,000.

Electric bikes

E-bikes appeal to riders of any age. Great for commuting, some models can also be used for off-road adventures, for long distances, or in hilly terrain. The price of an e-bike can range from $1,000 to more than $6,000 for high-end versions, and while auto financing won’t cover them, a personal loan might.

Using a personal loan for vehicle expenses

Whether you’re seeking other modes of transportation or exploring a hobby, any type of vehicle can be costly.

Some types of loans use the value of the vehicle as collateral to secure the loan and help guarantee repayment. The value of the asset may need to be equal to or exceed the amount you request to borrow. Loan approval may take longer, as the value of your collateral needs to be verified.

An unsecured personal loan from Discover, however, could be used in almost any way you choose. The lump sum could help you pay for both a vehicle and related expenses like gear, repairs, storage, trailers, registrations, and more. Plus, most people get a decision the same day, while funds can be sent as soon as the next business day after your acceptance.

Whether your next step in financing is a new vehicle, or you need flexibility to pay for other related expenses, our personal loan calculator makes it easy to estimate your monthly payments based on your desired loan amount and credit score. Get your dream rolling.

Financing Alternative Vehicle Expenses: Motorcycle, RV, and ATV Loans

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