Right now, used cars are very expensive due to overwhelming demand and low supply. If you are a borrower with bad credit it could cause problems, but sometimes you just need to get a car now. A tote with the ticket merchant might not be your only option, but it may be worth considering if you need to jump into another set of wheels right away.
What is a Tote the Note dealer?
A tote dealership is someone who sells and finances vehicles, usually from an independent parking lot. These dealers are also known as in-house financers because they are independent of third-party lenders and make all loans themselves, or “in-house”.
These dealerships are usually a good option if you have been denied financing due to your credit situation, or if you just don’t want to wait for approval from a dealer that guarantees to withdraw your credit reports. Many ticket merchants skip the credit check altogether.
Tote the note dealers only sell used vehicles, and so you can expect to pay a little more by shopping with one. You might think of this as the trade-off for not having your credit taken out.
Why Consider a Tote the Note Dealer?
Knowing that you are likely to face a high interest rate on a used vehicle, why should you consider buying your next car from a tote dealership?
The draw comes from the speed of the process and the possibility of getting a vehicle if you have the money to deposit and sufficient income. In many terrains, all you need is proof of employment, a valid driver’s license, and a down payment. Knowing that you can get in and out on the same day can give many people, especially those with bad credit, peace of mind when you need a car.
Down payments for used cars in a tote car lot can be up to 20% of the vehicle’s selling price. And you usually have to prove that you meet a minimum income requirement with a recent check stub showing cumulative income for the year.
Is there a catch?
The catch is that you may have to live with the higher cost of buying a car on one of these lots and a loan from a tote car lot may not. help you improve your credit score like other auto loans can.
You may also need to make your car payment weekly or bi-weekly, depending on your payroll schedule, instead of monthly. If you’re in a rush, need a car now, and don’t want to wait around being turned down because of your credit score, this could be for you.
Subprime lenders could also be a solution
If time is not a factor in your getting a car loan, but credit repair is, then you may want to consider shopping with a subprime lender through a dealership. special funding. These lenders work with borrowers in all kinds of credit situations including bad credit, no credit, and bankruptcy.
Subprime lenders review your credit reports and score, but they also have other stipulations for loan qualification. These factors, such as proof of income, residence, employment, a working phone, and a down payment required (usually less than what is required in a tote) work together to show a lender that you are. ready to take a car ready.
Plus, your payments are all flagged, so every timely payment can help improve your credit score and open up future car loan opportunities.
Ready to find a car dealership?
Whether you decide to go for a tote car or shop around with a subprime lender, you don’t have to start your search alone. Here has Auto Express Credit, we work with dealers from coast to coast who are registered with special finance lenders. Don’t let your credit score be the determining factor in your funding. Let us guide you to a dealer near you to save time and stress. Simply complete our quick and free auto loan application form to get started now!