Unlike other dealerships, DriveTime Financial finances 99% of the cars themselves. This means they don’t hand off your loan application to a bank like other car dealerships do… they ARE the bank.

Most banks look at your past and make a simple yes or no decision about your loan. DriveTime Financial focuses on your situation looking forward, and finds a way to make things work. Because they are one of the leading experts at financing cars for people with credit problems, they know exactly what to look for when assessing a customer’s situation—things that banks don’t even know about. Every person is different, and if there’s a way to make it work for you, they will make it happen. Read the rest of this entry »

Getting Auto Financing is Easy, even with Bad Credit.   Drivetime is one of the most reliable places to go when credit is getting in the way of purchasing a car.  DriveTime has 79 locations in in the following states GA, NC, TX, CA, NV, FL, NM, AZ, & VA.

Not located near a Drivetime dealer? Try Auto Loan ATM.

DriveTime

Summary: National “Buy Here Pay Here” Used Car Dealer. No Credit, Bad Credit & Bankruptcy OK. Well known buy here pay here used car dealer with many locations across the country.  Considered a true “second chance program“.

DriveTime is one of the nation’s largest dealership with 79 locations in 10 states specializing in selling used cars to people with credit problems. That’s all this company does because they are also the bank, making them one of the largest buy here pay here dealers in the United States.

The company offers an online application that prospect buyers can use to get pre-approved in less than 2 minutes.

Monthly minimum income of $1,200 is required.

Official Site: www.Drivetime.com

Drivetime Locations:

Albuquerque (4)

Greensboro (3)

Phoenix (5)

Atlanta (6)

Jacksonville (3)

Raleigh (1)

Austin (4)

Las Vegas (2)

Richmond (5)

Charlotte (5)

Los Angeles (4)

San Antonio (6)

Dallas (10)

Norfolk (3)

Tampa (6)

Denver (3)

Orlando (7)

Tucson (2)

Technology continues to evolve the way we do business… and the true goes for car financing and collections.

Many BHPH dealers are starting to use starter interrupt devices in order to control customer collections. The devices can easily and affordably help dealers prevent the customer from turning on the financed car.  Starter interrupt devices are also used to track the car’s location using GPS technology.

Read the rest of this entry »

Often times people who have had credit challenges in the past assume that their credit is so damaged that they will not qualify for a loan.  For some it is a matter of fear of rejection. They are so afraid of being turned down for a loan, that they rather not even try to qualify for financing. Fear of humiliation and rejection is a strong emotion that often keeps many from getting what they need and want in life. This is also true when you think of buying a car.  Strange, but true.

There are many dealers that primarily deal with customers who have poor credit histories. The problem is that they are not as well known as the major companies that market to the mainstream consumer. One of the most well known dealers known to help people buy a car with bad credit is DriveTime.  This company specializes in selling used cars to individuals with bad or no credit histories.

Another option is to find a local “buy here, pay here” (bhph) dealer. These small, locally owned and operated dealers are known to provide customers with owner auto financing. This means that the dealer will finance the car themselves and make an additional profit on the interest generated by the financing terms. Unfortunately, this also means that they care more risk in their business which results in higher prices and interest passed on to the end consumer.

Finally, some mainstream dealers also have established second chance programs to serve the subprime markets. While most would assume that the vehicles sold under second chance programs are used cars, this is in fact not the case. These dealers will prefer to sell the most economical cars they carry. It is far easier for the dealer to secure financing for a new car loan, where the profit margin is high for both the dealer and the financing company, than it would be to provide financing for a used car that has lost a considerable amount of equity.

So, in conclusion, can you buy a car with bad credit? The answer is yes – BUT be prepared to shop around and make sure you learn to read and understand the terms in those very long contracts. This could save you considerable grief later on. Take some time do your homework and be sure to get a car loan quote .

DriveTime - The "Go To Guys"

Before starting to write this review of  DriveTime (formerly Ugly Duckling), the popular used car dealer known for providing financing for people with low to bad credit, I spent some time reading online DriveTime reviews first.  I have my own opinions based on personal research, and conversations with industry experts, but I often find it useful to get a general idea for the overall reputation of a car dealer before writing my review.

Sure,  a lot of complaints you find online can be somewhat exaggerated, and at times fabricated by competitors, but for the most part they are written by consumers who are upset. The more of these online, the more likely is is that there is some validity to the claims, especially if you see an overall pattern emerge.

There are a ton of complaints online against one company that is now known nationwide (especially in the south) for providing auto financing to people with bad credit.  The company has had its share of legal problems, and two major lawsuits were filed against them. There was also a special report done by PBS…  Not exactly, the kind of press any company wants, right?  Sum it all up, and one can only come up with one conclusion, something has gotta be wrong with their business model.  So consumers beware. 

Now back to DriveTime.  Here’s my conclusion.  (I’d love to hear your thoughts – so please do comment!)

The Good

Flexible, In-House Financing for All Credit – DriveTime approves more than 99% of applications received. This is extraordinarily high and should give some comfort to individuals with bad credit — it is possible to buy a car with bad credit!  Best of all, the company now offers an online application and provides a fast decision online.

Many Locations – DriveTime has more than 86 used car dealerships across 10 states.  This company is proof that the “Buy Here Pay Here” business model is sustainable on a large scale.   DriveTime is not just a car dealer, it is a car dealer and car finance company built into one.  They provide “owner financing” for the cars they sell.

Well Known – DriveTime has been successful in branding themselves as the go to dealers for people with bad credit even though there are many other options for finding bad credit car loans.

Searchable Inventory & Diverse Selection of Used Cars – Unlike others, DriveTime offers an online searchable database of its diverse used car inventory.  I am particularly fond of this difference because I believe consumers ought to be able to shop for a car they like and want, and not be pushed to purchase any old car.  DriveTime has a selection of cars, vans giving consumers more ample options in choice.

Decent Used Cars - All DriveTime Financial used cars undergo an extensive 53 point vehicle inspection that helps ensure that cars sold are in good working condition and will give buyers minimal problems.  One of the most frequent complaints posted online for used car dealers is the quality of the cars sold.  Wherever you shop for a used car, you should be vigilant of quality. DriveTime’s inspection does make this a bit easier for you, though you should still do your own research.

Warranty – Just in case there is a problem with your car, the company offers a warranty on their used cars.

Special Programs – The company has some special incentives for military personnel and loyal customers.  These programs can help you save a lot of money on your used car purchase, regardless of credit.

Improve your Credit – Once approved for a car loan with DriveTime, your timely payments will be reported to the credit bureaus. This is hands down the best way to improve one’s credit — assuming of course, that you pay your loan payments on time.  I suppose this is why the often refer to their program as a “second chance car program”.

The Bad

Focused on Sales – The staff at DriveTime Financial is very focused on getting results. The result is a somewhat aggressive sales process that can often make consumers feel pressured.  Don’t let this sway you.  This is true of most car dealers, so be prepared for this situation wherever you shop for a car.

You will Pay More -  If you have bad credit and have not been able to get approved for a car loan anywhere, you will probably end up paying with a dealer like DriveTime Financial. Try to exhaust your options first. One good way to do this is to get a quote for a bad credit car loan from several dealers at once. This will avoid you having to go from dealer to dealer on your own.

The Ugly… um there is no ugly. The DriveTime cars are actually decent looking.

Learn more DriveTime, a used car dealership best known for bad credit auto loans.