A lot of people assume they have to pay cash for a golf cart. That used to be more true than it is today. But financing has become much more accessible and many buyers now spread their purchase across monthly payments rather than writing a single large check.
The catch is that golf cart financing is not as standardized as car financing. There are more options, more variation in rates, and more room to make a costly mistake if you do not know what to look for.
This guide breaks it all down in plain terms.
What Types of Golf Cart Financing Are Available?
You have four main options. Each has trade offs worth knowing before you commit.
Dealer Financing
Many golf cart dealers offer in house financing or have relationships with lenders who specialize in powersports and recreational vehicle loans. Dealer financing is convenient because you handle the purchase and the loan in one place.
The downside is that convenience can come at a cost. Dealer arranged financing sometimes carries a higher rate than you could get on your own, because the dealer earns a small fee for arranging the loan. That fee gets baked into your interest rate.
This does not mean dealer financing is a bad deal. It just means you should know your own credit score and have a rough sense of what rates are reasonable before you walk in. That way you can recognize a good offer from a padded one.
At 303 Cart Barn, we work with lenders who offer competitive rates on both new and used carts. We are transparent about the terms and happy to walk you through what you are actually paying over the life of the loan.
Personal Loans
A personal loan from your bank or credit union is another common option. If you have a good relationship with your bank or belong to a credit union with low rates, this can be one of the cheapest ways to finance a golf cart.
Personal loans are typically unsecured, meaning the lender does not take the cart as collateral. Because there is no collateral, lenders take on more risk, which often means slightly higher rates than a secured loan. But if you have strong credit, the difference can be small.
Credit unions in particular tend to offer lower rates than traditional banks. If you belong to one, it is worth calling them before you visit a dealer. Get a pre approval letter if possible. It gives you negotiating power and a clear ceiling on your budget.
Home Equity or HELOC
If you own a home, a home equity line of credit can offer very low interest rates because the loan is secured by your property. Rates on home equity products often come in below personal loan rates and well below credit card rates.
The obvious risk is that your home backs the loan. If something goes sideways financially, the stakes are higher than a default on a personal loan. For a golf cart purchase, most financial advisors would suggest this option only if the rate difference is significant and you are in a very stable financial position.
Credit Cards
Paying for a golf cart on a credit card is common for buyers who plan to pay off the balance within the promotional period on a zero interest offer. If you have a card with a 12 to 18 month zero percent promotion and you are confident you can pay it off in time, you can effectively borrow for free.
If you carry the balance beyond the promotional window, interest kicks in at whatever your card’s regular APR is, often 20 percent or higher. That makes credit card financing the most expensive option if you do not pay it off quickly.
What Credit Score Do You Need?
Golf cart lenders look at credit score the same way auto lenders do, though the specific requirements vary by lender.
As a general guide:
A score above 720 puts you in the best rate tier. You should qualify for the lowest available rates with most lenders.
Scores between 660 and 719 are still considered good. You will qualify for financing but your rate will be somewhat higher than the best tier.
Scores between 600 and 659 fall into the fair range. Some lenders will work with you but the rate will be noticeably higher and you may be asked for a larger down payment.
Scores below 600 make financing harder to secure. Some dealers and specialty lenders do offer subprime recreational vehicle loans, but the terms are usually unfavorable enough that it is worth taking a few months to improve your score before buying if you can.
Checking your own credit score before shopping costs nothing and gives you a realistic picture of what to expect. The three major bureaus each allow one free report per year through AnnualCreditReport.com.
How Much Should You Put Down?
Down payments on golf cart loans typically range from 10 to 20 percent. Putting more down reduces your monthly payment and the total interest you pay over the life of the loan.
There is also a practical benefit to a solid down payment on a used cart. Used carts, like used cars, depreciate. If you put very little down and the cart’s value drops, you could end up in a situation where you owe more than the cart is worth. Putting down 15 to 20 percent helps protect against that.
If your budget is tight, some lenders will approve loans with lower down payments for buyers with strong credit. But going in with at least 10 percent will make the process smoother and the terms more favorable.
What Monthly Payment Should You Expect?
Monthly payments depend on the purchase price, your down payment, the loan term, and the interest rate. Here are some rough examples to give you a sense of the math.
A $7,000 cart with $1,400 down (20 percent), financed at 8 percent over 48 months would put your monthly payment around $134.
A $12,000 cart with $2,400 down, financed at 8 percent over 60 months would run about $192 per month.
A $5,000 cart with $750 down at 10 percent over 36 months would be around $140 per month.
These are illustrations, not guarantees. Your actual rate will depend on your credit profile and the lender you use. The key takeaway is that golf cart payments are typically very manageable compared to a car loan, which makes financing a reasonable option for most buyers.
New vs. Used: Does It Change Your Financing Options?
Yes, in a few ways.
Lenders are generally more comfortable financing new carts because the value is known and the condition is guaranteed. Rates on new cart loans can be slightly lower than on used carts for this reason.
Used cart financing is still widely available, especially through dealers with established lender relationships. The main variable is the age and value of the cart. Very old carts or carts with significant wear may be harder to finance through traditional lenders. In those cases, a personal loan or credit union loan becomes the practical path.
At 303 Cart Barn, we carry a range of inspected pre owned carts alongside new inventory. Our financing options work for both. If you are unsure whether a specific cart qualifies for dealer financing, just ask us before you fall in love with it.
Questions to Ask Before You Sign
Before you commit to any financing arrangement, make sure you have clear answers to these questions.
What is the annual percentage rate? Not just the interest rate, but the APR, which includes fees. This is the true cost of borrowing.
What is the total amount you will pay over the life of the loan? Multiply the monthly payment by the number of months and add in any fees. Compare that total to the purchase price to understand your actual cost.
Is there a prepayment penalty? Some loans charge a fee if you pay off the balance early. If you think you might pay it off ahead of schedule, you want a loan with no prepayment penalty.
What happens if you miss a payment? Understand the late payment terms before you need to use them.
A Note on Golf Cart Insurance
If you are financing a cart, your lender will likely require you to carry insurance on it. Even if they do not require it, insuring a cart you are financing is the right move. A stolen or totaled cart means you still owe the remaining loan balance.
We have a full guide to golf cart insurance in Colorado that covers what policies typically include, what they cost, and where to find coverage on the Front Range.
Frequently Asked Questions
Can you finance a used golf cart?
Yes. Many dealers, credit unions, and personal loan lenders will finance used golf carts. The key variables are the cart’s age, its condition, and your credit score. Very old carts may be harder to finance through traditional channels, but a personal loan or credit union loan usually fills the gap.
What credit score do I need to finance a golf cart?
Most lenders prefer a score of 660 or higher for standard financing. Scores above 720 typically qualify for the best rates. Some specialty lenders work with lower scores but the terms are usually less favorable.
How long can you finance a golf cart?
Loan terms commonly range from 24 to 72 months. Shorter terms mean higher monthly payments but less total interest. Longer terms lower the monthly payment but cost more over time. Most buyers land somewhere in the 36 to 60 month range.
Is it better to finance or pay cash for a golf cart?
It depends on your financial situation. If you have the cash available and earn more on investments than your loan rate, financing can actually make mathematical sense. If you carry the cash and invest it at a higher return than the loan rate, you come out ahead. For most buyers, the simpler answer is that financing allows you to buy sooner and keep cash on hand for other needs.
Does 303 Cart Barn offer financing?
Yes. We work with lenders who offer competitive rates on both new and pre owned carts. You can apply at our Littleton location or call us at 303-440-8400 to ask about current financing options. We also have a financing page with more details.
Do I need insurance to finance a golf cart?
Lenders typically require insurance on financed carts. See our Colorado golf cart insurance guide for coverage options.
