I am a current Drivetime customer on his last 5 months of a three year finance plan. They were "Ugly Duckling" at the time I signed on. I needed a car, had bad credit, and not enough disposable income to buy one outright.
So I bought my Corolla. I am familiar with this car, they are easy for me to work on, and it was cool. I have maintained a perfect payment history. 147.00 twice a month. Every month. Never late even once. I know these people and what they do.
Funny thing, I was thrown off the lot the night I went for the test drive because I refused to sign for the car until I 'thought about it'. They were asking 4k over blue book. I don't think so. I believe what he said was "Somebody get the *er OFF MY LOT!"
They seemed to be under the impression they were dealing with an idiot. Big mistake. I'd already run a VIN number search on the car. It was bought at an auction in california.in addition, this car was a repo.
One month after buying the car the transmission fell apart on a drive home from Phoenix. According to the mechanics, the transaxle was devoid of fluid (not transmission, transaxle). This should have been done during the so-called inspection. Ended up I only had to pay out 400 dollars out of a 2000 dollar repair. Right then. The car has been extremely reliable since then, but I attribute that to my skills as a home mechanic. I've 'fixed' a lot of things.
So now they are Drivetime. Don't let the title fool you, they are still the same shady outfit they have always been. Remember: No matter how friendly a car dealership is to you, a car dealership is NOT YOUR FRIEND. Drivetime refers to you people as 'roaches' for a reason. You are the enemy. Never EVER forget this.
I am currently 'enrolled' in their Drivetime Champions program, which means I have a little over 1,000 to go on my car. They are bending over backwards to get me to reloan.
First, there's the Drivetime Rewards program. This is a system of 'points' that can be redeemed for various knick knacks on their website. I have earned enough points to have my choice of:
A Basketball
A Bonsai Tree
A Coffee Grinder.
Wow, I feel so appreciated (sarcasm).
As for trading in my current car on a new car, here's how it REALLY works. They will tell you otherwise, but this is the truth:
1. I trade in my car to them. They forgive themselves the remainder of their own loan, or incorporate the remaining owed amount into the price of the new car.
2. They talk up how much car will be down payment on the new car... Done at roughly half the black-book price, probably about 500 dollars
3. They'll brag about how I will get a 14% interest rate. What they'll really be doing is giving me a 29.9% interest rate with the rest of the interest disguised in the cost of the car.
4. And I'm stuck on the hamster wheel for another 3-5 years. No thank you.
Advice for potential and current customers:
1. Unless you are prepared to make your payments on time, do not enter into a relationship with this company. Their reposession and collection practices are ruthless. Think it over. DOn't let pure desperation for a 'quick fix' drive you there. They are used to having their loans defaulted on and therefore have gotten very good at being agressive. Make sure you know what you can afford and spend no more than that!
2. Do your homework before you buy your car. You can get the VIN number right off the car and run a vehicle history search for very cheap on the internet. It will tell you any title activity on the car over the last few years.
3. Kelly Blue Book is a great resource to have available. Don't expect to pay below blue book for a car, but know this: THEY didn't pay Blue Book for the car either! You have some leverage.
4. The dealer will try to tell you that the price of the car is higher if you are financing. This is a bald-faced LIE. The actual "price" of the car is supposed to be identical whether you pay cash or not. The only thing that drives up the price of financing the vehicle is interest. Argue that price! If you don't ask, you don't get!
5. Don't let the friendly rapport of the salesman fool you. If you want to see their true face, bail out when they try to close you. You'll see the yellow feathers come out instantly. Believe me, these people can get downright nasty.
6. Okay, lets say they have the vehicle you want, it's vehicle history checks out, and you've gone on a test drive and are happy. A little advice. Leave your checkbook at home. Give yourself 24 hours to think it over. I know it's hard to do when you're dying to have a car, but you will thank yourself later. I did.
6.5 Make it clear that the conclusion of the sale is contingent upon an independent inspection by a mechanic of your choice. It's about 40 bucks. Choose your own mechanic, and trust them to tell you what's wrong with the car. Use this to negotiate price.
7. The salesman will try to tell you that 29.9% interest is fair for someone with your credit score. This, again, is a lie. 29.9% interest isn't "fair" is is the MAXIMUM interest that can be charged for a load. That's Federal, by the way. You are being taken advantage of.By the way, you won't be negotiating the interest rate. They know you're desperate.
7.5 Yes, their comission depends on how much they get the car sold for. You have a ton of leverage. The salesman is only going to get between 200 and 500 bucks a pop. These people are trained that "a guy don't walk on the lot unless he wants to BUY. Close them!". Keep that in mind.
8. Do not be afraid to walk away from the deal. Don't be surprised if you hear from them again coming at you with a lower price. They did to me. Do not let them bully you. If you don't like the way things are going, leave. Trust me on this. There will be other options. Feeling ashamed is far better than being broke. You are the customer, not the roach. They are.
9. Strong advice. When they set you up with payments they will want to do it on your paydays. If you can, get your car payment due dates to be set 3-5 days after you get paid. Give yourself a little cushion for emergencies. Make your payments on time, make your payments on time, make your payments on time.
10. Whatever you do don't take out a payday loan to make a down payment on a used car.
On a positive note, all my payments have been reported to the credit beauraus and my credit rating IS improving, but there are far less expensive ways to get positives on your credit report besides buying an overpriced used car.
Good luck to you all. Know your enemy. See you in June when I'm done paying this off:).
David
Tucson, Arizona
U.S.A.
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