Tote the Note – Buy Here Pay Here
Bad credit, bad credit, no credit, no problem.
We take the note.
These are all common signs that you see at some used car dealerships and appear on your television screen. However, do you really understand what is behind this concept?
A Tote the Note dealership is really no different from the concept used at furniture rental companies, where you pay for the car where you bought it without any loan company in between. However, there’s still one big difference between a furniture rental company and a Tote the Note car dealer: your credit report.
When you’re shopping for a new or used car, you’ll probably spend more time in the office with the car salesman and his manager trying to buy your loan from a loan company. The way this is done is that you fill out a credit application, the car salesman takes it to your manager, who then enters your information into a computer to run a report on your credit. When they receive your credit report or credit score, they will fax this information to the loan companies they use to finance the cars they sell. Now the loan company will review your credit report and decide if you want to buy your loan. This means that you will pay the loan company the money they give the car dealer for the car you buy. If you have bad credit, bad credit, no credit, or bankruptcy on your credit report, you will most likely get your car loan turned down or get the bad news that you have to add 21% interest to the price of the car. The bottom line is that you will pay about the same amount of money each month for the money used because you pay for rent or the purchase of your house just because your credit is not up to scratch.
Furniture rental companies do the same thing, they look at your credit report and if your credit is not what it should be, you may not be able to rent your furniture to own it either.
On the other hand, Tote the Note car dealers do not look at your credit report. They will ask you to fill out an application, but the information they need is where you work, how much money you make, the address and phone number of the next of kin and, of course, his address. The only thing you really need to buy a used car on a Tote the Note lot is a job.
A Tote the Note car dealer receives cars from other people who trade in their vehicle to buy another, buy them at auctions or other people. In most cases, the dealership has a mechanic who will fix major problems found with the car; however, you will be buying a car without any type of guarantee. This means that if something goes wrong with the car, the dealer will not fix it, you will have to pay for all repairs. This is normally called “sold as is”.
The nice thing about buying in a Tote the Note lot is that you won’t have to pay any interest. The price of the car is what you pay. The normal time to pay for the car is usually between 12 and 18 months. You will have to pay a certain amount each month until the full price of the car is paid off minus any down payment you may have. Some Tote the Note lots also offer “no down payment” but this will increase your monthly payment.
Purchasing from a Tote the Note car dealer will not affect your credit rating in any way. These car dealers do not report your payments to the credit bureaus, however, if you default on the loan, it is not reported either. If you don’t make your payments, Tote the Note Car Lot will repossess your vehicle and put it back on their lot for sale.
If you have bad credit, no credit, or other issues that prevent you from buying a car through a loan company, then a Tote the Note car dealer may be your best option for getting a car. Remember to check the car out and test drive it as you will be the one paying for the repairs once you sign the agreement and drive off the lot. You don’t want to drive the car a couple of blocks and die, because then you’ll have to pay for repairs and keep up with your monthly car payment.