About lender
DriveTime is a "Buy Here, Pay Here" used car retailer. The company's head office is in Tempe, Arizona, and it has 139 dealerships in 28 states. To obtain financing for a car, an applicant doesn't need to come to the company's office. Car buyers get financing approval through an online process.
The principle of "Buy Here Pay Here" implies that the car sales company allows you to purchase a car on credit. The company offers several financing options for buying cars for clients with different credit histories. It also offers a trade-in process and assistance in the correct and independent evaluation of buyers' cars.
Thomas S. Duck, who used to sell insurance, created the Ugly Duckling company in 1977 in Tempe, Arizona. At first, the company was engaged in renting cars. In 2002, the chief chairman of the company renamed it DriveTime and changed the type of activity of the organization. It has set itself the goal of simplifying the process of buying used cars and making them accessible to different people with different income levels and needs. The company has helped 4 million people with financing and has over 8000 cars available for sale.
Pros and cons
Pros
- An extensive range of cars
- Return guarantee and 30-Day/1500-mile warranty
- High limit on the amount of financing
- The straightforward process of buying a car
- Loyal credit check. The customer may even have an empty credit report but still qualify for a loan.
Cons
- Finance terms such as interest rates and the first payment amount are unknown even after submitting an online application.
- Lots of extra fees.
Conclusion
Overall, DriveTime is a great choice for used car shopping. The company has more than 8000 cars for every taste. It is also possible to get a discount on purchasing a car if you use the trade-in process. The company gives guarantees and does all the paperwork for you. You don't need to have a perfect credit history to get financing from a company since the credit report and credit score are not the only factors that are considered during the credit check. The only caveat is the inability to find the exact finance terms, such as interest rates and the first payment amount, before going to the dealership.
Terms and conditions
Financing the purchase of a car allows the customer to do car shopping on credit. All the company's cars have a mileage of fewer than 150,000 miles and are not older than 13 years. A return guarantee is valid for the purchased car. The customer can return the vehicle within five days. Also, the company's cars have a 30-Day/1500-mile limited warranty.
The borrower does not need to search for information about the car, as the company provides a free AutoCheck History report. AutoCheck History report allows the client to find out about the former owners of the car and the incidents that happened to it. It is possible to reserve a car in a local dealership so that the company does not sell it before the borrower arrives using the Vehicle Reservation Program. The borrower can take loan amounts from $7,000 to $ 35,000.
The available terms of financing are not indicated on the website. The interest rate for car loans is as low as 7.9%. However, the interest rate may differ depending on the buyer's credit history, the loan term, and the down payment amount. Usually, the down payment is less than $ 1,000, depending on the car's cost. The company takes the origination fee but does not specify the exact amount of the commission.
Funding a loan
The borrower does not have access to money. The company's financing options can only be used to purchase a car. The process of getting a car is quite fast, and filling out the application takes 2 minutes. It is possible to come to the dealership, give documents to the Sales Advisor and buy a car on the same day.
