WHAT ARE TOTE THE NOTE AUTO DEALERS?
Nowadays, owning a car is more of a necessity than a want. So it is
not surprising to know that a lot of people are in the market to
purchase their own cars to make traveling more convenient.
However, not all car buyers have the money to pay the vehicles they
like upfront. After all, everyone knows that cars do not come cheap.
As a result, they choose to take out a loan to get the funding they
Credit unions and community banks often come to mind when it comes
to auto financing. The problem with these financial institutions,
however, is that they prefer to lend money to those with positive
payment history appearing on their credit reports.
Due to this, those with bad credit records get discouraged to
approach them for the fear of getting rejected. As such, they feel
like they have no other choice but to turn to other risky financing
sources, such as tote the note auto dealers.
What are Tote the Note Auto Dealers?
Simply put, tote the note auto dealers are a type of dealership that
handles its own financing. They often cater their services to
potential car buyers who either have poor credit or do not want to
go through the lengthy process of taking out a loan from traditional
Because they facilitate a “buy here, pay here” operation, the first
thing you will notice when dealing with them is that they will ask
how much you are capable of spending on a car each week. From there,
they will work out the terms and let you pick a vehicle from their
The practice may seem appealing on the surface–the tote the note
auto dealers will try to work around your budget, approve you even
when you have bad credit, and their processing time does not take
However, know that resorting to this option is one of the worst
possible financing decisions you could make. Here are some reasons
1) LIMITED CAR OPTIONS
. Unlike when you go car shopping at a
dealership that works with a third-party financing company, vehicle
options available in tote the note auto dealerships are limited.
What you see on the floor are the only ones you can choose from.
This, in turn, confines your options to vehicles that you probably
won’t be happy driving around.
2) SUBSTANDARD CARS
. Believe it or not, most of the cars sold at
tote the note dealerships are second-hand or bought from auctions by
the dealer. Before they are displayed on the floor, they are cleaned
up so they look like new or were only slightly used.
There have also been a couple of cases were some dealerships were
involved in the illegal activity of selling wrecked or salvaged
The trick is simple: They patch up the vehicle so it looks all
prepped up on the outside, then sell it at an expensive price.
The point here is that, there is a possibility you could end up with
a “lemon” vehicle when you opt for this kind of financing. When that
happens, you are putting yourself at risk of spending more than you
are willing to shell out on vehicle repairs, or worse, end up in an
accident while driving the car.
3) NO HELP ON YOUR CREDIT
. If you are like many uninformed buyers,
chances are you assume that when you take out a car loan from a tote
the note auto dealer, your credit will improve. Think again.
Many of these dealers won’t take the time to report the payments you
make to the major credit bureaus to help improve your credit rating.
However, when you miss out one payment, they will alert the
authorities, which in turn will drag your score further. When that
happens, you will end up in a cycle of taking out loans from
dealerships like this if you need financing, making it more
difficult to rebuild your credit rating.
A Word of Advice
It is a sad truth that many car buyers fall victim for the scheme of
these tote the note dealers. However, you can protect yourself
against them if you exercise due diligence.
and seek out for legitimate auto lenders. Even if you have bad
credit, there are many financing institutions that are willing to
work out terms that will suit your situation and will help you
improve your credit rating.
You can check out the bad credit financing programs offered here at