A tote the note dealership is not like a traditional dealership that offers auto financing and leasing options to borrowers with fair to good credit. In addition to sidestepping third party financing, they also:
- Give the customer a different shopping experience
- Accept any credit situation
- Don't always report to the credit bureaus
When you shop at a dealership that uses a third party auto finance company, your loan or lease terms, interest rates, budget, and all other details are discussed and completed after you have found a car you like. Basically, the salesperson will have you take the vehicle for a test drive and fall in love with it, then try to work your loan around the amount of the car. This can cause unnecessary disappointment when you simply can't afford the vehicle you have your heart set on.
At a tote the note car dealer, the buying process is usually reversed. When you walk onto the lot, the first thing you will do is talk to the finance manger and figure out exactly how much you can afford to spend on a car each week and what the terms of the loan will be. Then you will begin looking for a car, truck or SUV that fits your family's needs.
Whether you have good, poor or bad credit, or need a bankruptcy car loan, a tote the note car dealership will most likely approve you. This is because most don't perform a credit check when you apply with them. Instead, they ask for proof of income and residency. They are more concerned with you having the financial means to make the payment than they are with your credit history. Keep in mind that since they are working with buyers who have low credit scores and pose a high risk of defaulting, these loans come with higher than normal interest rates.
If they don't do credit checks, they may not report to the credit bureaus either. If your dealership doesn't report your good payment behaviour, it means that even if you pay every week on time and in full, your credit score won't improve like it would with a car loan from a traditional or sub-prime lender. If possible, make sure that you work with a dealer who reports timely payments on a regular basis. They do exist.
