Tote the Note Financing

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What is Tote the Note Auto Financing?

Tote the note financing is becoming more popular in the auto industry among bad credit borrowers. This type of financing refers to car dealers that offer car buyers with bad credit a chance to get into a vehicle when they have been turned down by other lenders. These car lots offer the financing right at their dealership instead of using third party finance companies like banks or credit unions.

Differences Between Tote the Note and Traditional Dealerships

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.

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Bad Credit Buyers Choose Tote the Note Car Lots

Being turned down at a regular dealership for an auto loan because of your past credit history can leave you feeling embarrassed and ashamed. Now you know that there is a place where you'll likely be approved - a tote the note dealership. If you have a steady income and can afford a car payment a guaranteed credit approval car lot may be right for you.

They offer some big advantages, and can make the buyers feel as if a huge weight has been lifted from their shoulders. Auto Credit Express works with tote the note dealers around the United States and Canada that can offer you the following:

  • Guaranteed Approval based on Minimum Income and Debt
  • Payment options to match your pay cycle
  • Cheaper pre-owned cars

Keep in mind that the cars on these lots are not beat up junkers that you wouldn't want to be seen in. Most of them are later model used cars with low mileage and good engines.

BBB Rating
as of 05/28/2024

Tote the Note Down Falls

Obtaining an auto loan from these buy here pay here car dealers is not always a perfect solution. There are, in fact, some minor drawbacks to this type of financing and you should take them into serious consideration. For instance:

No Guarantee of Credit Repair
Some of these dealers don't report your payments to the three major credit bureaus: TransUnion, Equifax, and Experian. Doing business with these dealers means that unless you take out another type of loan to start rebuilding your credit score, when you need another new vehicle down the road you may get yet another high interest auto loan. So, try to find a BHPH dealership who reports timely payments.

GPS Tracking is Enabled
Almost all vehicles sold on a tote the note car lot are equipped with GPS tracking devices, and as soon as you sign on the dotted line of your paperwork, the device in your car is turned on. Once activated, the dealer will know where the vehicle is at all times, making it easier for them to repossess the vehicle if you miss your payments.

Automatic Shut Off Device
In addition to a GPS tracker, your BHPH car may be enabled with an automatic kill switch. This allows the dealer to turn off all power to the engine if you miss your payment. The automatic shut off device combined with the GPS tracking makes repossession a lot easier for them.

Where to Find Tote the Note Car Dealerships
If you have experienced financial difficulty in the past, such as bankruptcy or a damaged credit rating, you're not alone. Auto Credit Express can help you get back on the road with a poor credit auto loan from your local tote the note car dealership. Our quick, simple and secure online loan request form is the first step to getting your next car. Once you've met with your finance manager, he or she will help you finalize all the details and likely get you driving away in your new used car the same day.

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