A Tote-The-Note Car Lot is a car lot that serves as a last resort for consumers who have bad or no credit and can’t qualify for traditional bank financing. Since Tote-The-Note Car Dealers sell cars and also assume the risk associated with funding car loans they have the ability to be much more aggressive in regards to who they approve.
Other Common Names For Tote-The-Note Lots
Tote-The-Note Car Lots are also referred to as Buy Here Pay Here Car Lots, In-House Financing Car Lots, We Finance Everyone Car Lots, and/or Rent-to-Own showrooms. It is very important to realize that the common element is that there is no outside third party bank involvement.
Who Do Tote-The-Note Dealers Accept?
Tote-The-Note Dealers accept people with all types of credit issues and don’t even require a credit check. They can do this by using the “your job is your credit” model, which primarily focuses on the stability of future income.
Bad Credit? Try a Subprime Lender First
Subprime lenders and Tote-The-Note Car Dealers are very different. Subprime lenders specialize in lending money to applicants with credit issues but still offer reasonable interest rates. These interest rates are closer to what traditional lenders offer. So essentially, subprime lenders bridge the gap between the rigorous requirements of traditional banks and the non-existent requirements of Tote-The-Note Car Lots.
What Type of Cars Do Tote-The-Note Lots Offer?
Contrary to popular belief, the vehicles on Tote-The-Note lots are not all old and dilapidated. The majority of the cars offered are just as good as you’d find at other car dealerships. Another thing to consider is purchasing an extended warranty. This is an important decision because if the vehicle breaks you will still be responsible for paying the payments.
Disadvantages of Tote-The-Note Lots
It is vital that before you decide to go with a Tote-The-Note Car Loan that you make absolutely sure you are in a position to easily afford the payments. Although these dealers will approve almost all applications, they also take precautions against bad payers. It is common for cars purchased at Tote-The-Note Dealers to include a GPS device and/or a kill switch. These items are used as fast and effective way to repossess the car if needed.
Tote-The-Note Car Loans Aren’t Always the Best Option
Rather than for those struggling financially, Tote-The-Note Car Lots are for people who are easily able to afford the payments, but simply have a credit history that precludes them from obtaining traditional or subprime car financing.
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