DriveTime Automotive Group, Inc.

DriveTime Automotive Group, Inc. is a used car dealership chain and in-house auto finance company headquartered in Tempe, Arizona. DriveTime operates a network of used car lots primarily in the southern, southeastern, and midwestern United States and focuses specifically on serving buyers who have limited or damaged credit and cannot obtain financing through conventional lenders.

DriveTime combines the vehicle dealership and the financing process into a single in-house operation. Rather than arranging financing through external banks or lenders, DriveTime funds its own loans. This integrated model means that a buyer who cannot get approved elsewhere may be able to purchase a vehicle and obtain financing at a DriveTime location, though the terms reflect the higher risk involved in lending to subprime borrowers.

Because DriveTime targets subprime borrowers, interest rates on its loans are typically significantly higher than what a prime borrower would pay through a bank, credit union, or manufacturer captive lender. Buyers should calculate the total amount paid over the life of any DriveTime loan and compare it carefully with other available options, including whether waiting and improving credit might result in substantially better financing terms.

Vehicles at DriveTime are inspected and carry some form of limited warranty, and the company has a defined buying process that includes steps for credit-challenged customers. The loan servicing is handled by Bridgecrest Acceptance Corporation, a related company.

Consumers who are considering a DriveTime purchase should review all financing terms in full before committing, pay attention to the annual percentage rate, the loan term, the monthly payment, and the total repayment amount, and consider consulting a nonprofit credit counseling organization to understand their full range of options.