Why is my down payment so high on DriveTime? (2024)

Why is my down payment so high on DriveTime?

Unlike the majority of 'buy-here pay-here' dealerships, we don't have the same down payments for everyone. We customize our down payments per vehicle and per customer. Typically, higher priced vehicles require a higher down payment, which is pretty standard.

Can you negotiate with DriveTime?

DriveTime is a “No-Haggle Dealership,” where there is no negotiation and the price you see is the price you get.

How much interest does DriveTime charge?

People with good credit, bad credit, and no credit can all be approved, with interest rates starting at 7.9%. Read on for pros and cons of buying a car with DriveTime's in-house financing.

How much should you put down on a $12000 car?

In general, you should strive to make a down payment of at least 20% of a new car's purchase price. For used cars, try for at least 10% down. If you can't afford the recommended amount, put down as much as you can without draining your savings or emergency funds.

Does DriveTime require good credit?

One of the reasons for the high-interest rate is that DriveTime mainly targets subprime borrowers. However, subprime is classified as having a credit score between 580 and 619, with deep subprime being anyone with a score below 580.

How does DriveTime down payment work?

DriveTime does not offer the opportunity to make payments on the down payment. However, we do offer a reservation program. The DriveTime reservation program allows you to hold the car of your choice for up to seven days, but you cannot drive the vehicle off the lot until the down payment is fully paid.

Does DriveTime have trackers on cars?

Inilex Inc. recently signed a deal with DriveTime Automotive Group Inc. of Phoenix to install the technology on the dealer's cars to help it track vehicles on its lots, as well as those sold to customers deemed high-risk because of low credit scores.

Is DriveTime down payments real?

Yes, we are! DriveTime is unique in the way that we are the auto dealership and the bank, which allows us to be more flexible with down payments and monthly payments depending on your unique situation.

What is proof of income for DriveTime?

Get behind the wheel faster by bringing in your valid driver's license, proof of residence (typically a utility bill), proof of income (typically a pay stub) and proof of insurance.

Does DriveTime have gap insurance?

At DriveTime, we offer a vehicle protection plan to protect you from unexpected mechanical issues, SkyLINK GPS service to keep your car safe and GAP Insurance to protect your loan.

Is $2,500 enough for a car down payment?

How much should you put down on a $25,000 car? For a $25,000 car, consider putting down at least $2,500 if it's used or at least $5,000 if it's new. By putting 10% or 20% down depending on the car's condition, you'll have the best options for loan terms and interest rates.

Is $2,000 enough to put down on a car?

A good rule of thumb for a down payment on a new car loan is 20% of the purchase price. A down payment of 20% or more is a way to avoid being “upside down” on your car loan (owing more on the car than it's worth).

How much would a monthly payment be on a $25,000 car loan?

Rates and terms are subject to change without notice. Example: A six year fixed-rate loan for a $25,000 new car, with 20% down, requires a $20,000 loan. Based on a simple interest rate of 3.4% and a loan fee of $200, this loan would have 72 monthly payments of $310.54 each and an annual percentage rate (APR) of 3.74%.

Does DriveTime run a hard credit check?

The great thing about DriveTime is they build customized approvals. They won't find fault with you if your credit score is not its best. Fair warning, they will run your credit. However, weary shoppers should feel some relief knowing they'll take everything into consideration as well.

Does DriveTime verify employment?

Verify DriveTime Employees

The process is simple and automated and most employees are verified in under 24 hours. You only pay for successful verification and can save on average 50% compared to competitors.

Is DriveTime the same as CarMax?

Large used-car retailers like CarMax and DriveTime function like independent dealerships, but they're different for a number of reasons. For example, CarMax calls for inspections of all of its cars for sale, and each comes with a free vehicle history report and safety recall report. DriveTime's program is similar.

How not to pay a down payment on a car?

Can you buy a car with 524 credit score?

With a bad credit score, you'll likely be offered some of the highest advertised rates. According to data from Experian, borrowers in the subprime category (a FICO score between 501 and 600) can expect an average rate of 12.28 percent for new cars and 18.89 percent for used cars.

What GPS tracker does DriveTime use?

PHOENIX — Drive Time announced it has selected Inilex to be the supplier of GPS-based vehicle tracking and recovery solutions for its 89 dealership locations.

Can you be tracked through your car?

Yes, it's possible for your car's GPS to be tracked even when it's turned off, depending on the type of GPS system installed in your vehicle. Some GPS devices have a feature called "passive tracking" where they continue to record and store location data even when the device appears to be turned off.

How do you know if your car has a tracker from the dealership?

First, check with the salesperson or manager who sold you the car. They may be able to tell you if a tracker was installed during the sale. If not, they should be able to give you the contact information for the person who installed any tracking devices on the car. Next, take a look around the exterior of your car.

Is DriveTime a predatory lender?

CFPB took action against a “buy-here, pay-here” car dealer. DriveTime must pay $8,000,000 as a civil money penalty, end its unfair debt collection tactics, fix its credit reporting practices, and arrange for harmed consumers to obtain free credit reports.

Are down payments on cars worth it?

It's good practice to make a down payment of at least 20% on a new car (10% for used). A larger down payment can also help you nab a better interest rate.

Is DriveTime a subprime?

DriveTime is a private company headquartered in Tempe, Arizona. The company's business model is focused on selling previously owned vehicles to car-buyers. It uses a proprietary credit scoring model to finance car purchases at its dealerships in-house, including subprime lending.

What is proof of your income?

If you're applying for a mortgage or rental agreement, you'll likely need to provide proof of income. Some common documents to have on hand: paystubs, tax returns, W-2 and bank statements, among others.