DriveTime: Flexible Financing & Used Cars

About DriveTime

DriveTime is a well-established auto dealership in Arizona known for providing used car sales and auto financing services. Founded in 2002, the company operates over 130 dealerships nationwide, serving diverse customers, including those with credit challenges. With a focus on offering flexible financing solutions, DriveTime aims to make the car-buying process accessible to a broad audience. They provide financing directly to consumers, eliminating the need for third-party lenders, and emphasize a customer-centric approach to car loans.

The company’s services include options for financing used cars and providing tailored loan terms based on individual financial situations. Customers can browse vehicles, apply for financing, and receive pre-approval online before visiting a dealership. Their process is designed to be transparent and straightforward, allowing customers to explore payment options that suit their budget. DriveTime also offers extended warranties and vehicle service contracts to support customers after the sale. While their services are intended to help customers with varying credit backgrounds, they note that loan terms and approval depend on individual credit and financial history.

The business has received reviews on various review platforms and has accreditation from the Better Business Bureau (BBB), where they maintain an A+ rating. As with any financial service, it’s essential for potential customers to fully understand the terms and conditions before proceeding with a loan.

In 2013, the company acquired the majority stake in Carvana, but the two companies still operate independently. Additionally, in 2015, it established a new company, SilverRock Group, which specializes in selling auto insurance, vehicle service contracts, and extended warranties.

DriveTime Auto Loan Services

Used car purchasing
DriveTime offers a straightforward approach to purchasing used cars by paying in cash or applying for an auto loan. With over 11,000 vehicles available across over 130 dealerships nationwide, DriveTime provides plenty of options. Their search tool lets you quickly browse vehicles based on location. You can also fine-tune your search by filtering for specific preferences such as make and model, price, body type, mileage, fuel type, drivetrain, vehicle history, and more. This customization ensures you find a car that best suits your needs, whether you're prioritizing fuel efficiency, engine performance, or special features.

Trade-in services
DriveTime partners with Kelley Blue Book® to simplify the trade-in process, offering consumers an instant cash offer for their vehicles. By visiting DriveTime’s website and selecting “Value Your Car,” you can fill out a short form with your vehicle's details, such as the VIN and license plate number, and make/model. You’ll receive an instant cash offer valid for seven days within minutes. After a quick inspection, you have one day to redeem the offer. It’s important to note that any change in your vehicle’s condition or mileage exceeding 50 miles after the inspection could result in a recalculated offer. This service aims to provide a fast, hassle-free way to trade in your car without the lengthy negotiation process.

Auto loan financing
DriveTime offers flexible auto loan financing for customers, regardless of their credit score. They work to personalize terms based on your financial situation. DriveTime’s auto loans come with a minimum starting annual percentage rate (APR) of 7.9% and offer terms as long as 84 months, giving you extended payment options. By customizing loan terms, down payments, and monthly installments, DriveTime aims to make car-buying more accessible for individuals with varying financial backgrounds. You can explore DriveTime’s auto loan options in their full review for a more detailed breakdown.

Extra offerings
The company offers many additional benefits. However, it is not clear whether these benefits are provided along with their financing services. Therefore, it is recommended that you inquire about these extra services before financing your next vehicle through them. 

• Money-back guarantee: DriveTime offers a five-day money-back guarantee on all its vehicles. You can return your car within five days for a full refund. However, your refund will be reduced if you drive the car over 300 miles during this period. This policy gives buyers peace of mind by providing a short window to ensure their purchase fits their needs without long-term commitment
• Basic warranty: Each vehicle purchased through DriveTime comes with a 30-day, 1,500-mile limited warranty. If an issue covered under the warranty arises, DriveTime handles the repair process, making it easier for customers to resolve problems early in their ownership
• DriveCare program: DriveTime offers the DriveCare program an extended protection plan covering key vehicle components such as the engine block, transmission, drive axles, and climate control systems. This program includes a five-year, 50,000-mile warranty, providing long-term peace of mind for buyers concerned about costly repairs
• Powertrain coverage: Besides the DriveCare program, DriveTime provides a powertrain coverage option that offers protection for three years or 36,000 miles. This coverage includes vital components such as AC, heating, cooling systems, and steering mechanisms, offering further protection for key vehicle parts
• GAP coverage: DriveTime also provides optional GAP (Guaranteed Asset Protection) coverage. If your vehicle is declared a total loss due to an accident or theft, GAP coverage will waive the remaining loan balance, ensuring you’re not stuck paying for the car you can no longer drive. This optional coverage adds an extra layer of security for buyers financing their vehicles

Prices & Plans

DriveTime provides financing for used vehicle purchases, but they don’t publicly disclose specific prices or interest rates. Customers can explore financing options without a minimum credit score requirement, which makes their services accessible to a broad range of credit profiles. DriveTime’s loan terms are personalized based on income and vehicle choice, with the aim of creating manageable payment plans.

Customers can begin the process with an online prequalification, which estimates potential financing terms without affecting credit scores. This prequalification can help buyers gauge expected down payments and monthly costs before visiting a dealership. DriveTime also offers optional add-ons, such as GAP insurance and extended vehicle protection, which customers can include as part of their financing.

In addition, DriveTime offers a five-day money-back guarantee, allowing customers to return their vehicle if they are unsatisfied. However, the refund amount may be reduced if the car is driven over 300 miles during this period. As with any financing arrangement, it’s advisable for customers to carefully review all terms and conditions before finalizing their purchase.

Advantages

Online application
The convenience of an online application process allows customers to explore financing options without needing to visit a physical location. This can make finding and securing a loan more streamlined and accessible, saving time and providing flexibility. For those who prefer digital solutions, the online application offers a straightforward way to view available vehicles and financing terms from home.

Nationwide services
With services and dealerships spread across the country, customers can access a wide range of vehicles regardless of where they are located. This extensive network makes it easier to find nearby locations, making car purchasing and financing available to a larger pool of people. The broad reach also helps customers explore more options and find a vehicle that suits their preferences without being limited by geographic constraints.

Potential Drawbacks

Lack of transparency
A key disadvantage to this provider is the  lack of transparency around their loan terms and vehicle details, which may leave some customers uncertain about the actual cost and condition of the vehicle they are financing. While options are presented, the full terms and potential fees aren't always clear upfront, requiring customers to do extra research. This can create a less straightforward experience, especially for those who prefer to have detailed information before making decisions.

User Experience

DriveTime's reputation in the auto financing space is mixed. Some customers praise their accessible services, while others have expressed concerns about loan terms and customer service experiences. On their BBB business profile, they have an A+ rating and have been accredited since 2012. Customer reviews on the BBB gave them a 4.29 out of 5-star rating based on 1600 reviews. On Truspilot, they have a 4 out of 5-star rating; however, it seems that that page is for their used car services.

Given that they are primarily a dealership, most online customer reviews are focused on their car-selling services. Therefore, we recommend contacting their current or previous customers to inquire about the quality of their auto loan and financing services.

Positive customer reviews
Many customers have praised their experiences with DriveTime, highlighting the friendly and supportive staff who made the car-buying process smooth and enjoyable. Some mentioned representatives went above and beyond, providing excellent communication and staying connected throughout the transaction. Customers also appreciated the hassle-free experience, noting how DriveTime’s staff was patient, kind, and focused on finding the right vehicle without any pressure.

Others shared that the process was quick and stress-free, with representatives ensuring they understood all the details and had multiple vehicle options. DriveTime's straightforward approach to paperwork and financing was also appreciated, as several customers found it one of the most effortless and relaxing car purchases they’d ever made. For many, the high level of customer care and attention made the overall experience positive, and they would recommend DriveTime to friends and family.

Negative customer reviews
Some customers have reported mechanical issues with their vehicles shortly after purchase, including faulty brakes, engine malfunctions, and transmission failures. These problems often required costly repairs, and many customers felt that the warranty coverage provided by SilverRock was inadequate, as it only partially covered the necessary repairs. For example, while a brake disk replacement might be included, customers could not cover the cost of brake pads themselves. This lack of comprehensive coverage led to significant dissatisfaction, particularly for those who had to pay out-of-pocket for what they believed should have been covered repairs.

Additionally, delays in repair times and repeated issues left some customers without reliable transportation for extended periods. Compounding the mechanical challenges, some customers also faced discrepancies between the financing terms quoted online and the final terms at the dealership. Many reported being offered lower down or monthly payments initially, only to discover higher costs at the point of sale. These issues with transparency and inconsistencies in customer service left several buyers feeling misled and frustrated, even when DriveTime attempted to address their complaints.

Customer Support

DriveTime offers multiple channels for customer support, allowing you to reach their team by phone at 888-418-1212 or by email at [email protected]. Their website also includes a comprehensive FAQ section and a variety of blog articles that address common questions and provide additional insights into their services

Final Thoughts

DriveTime’s approach to used car sales and financing offers a unique solution for individuals who may face challenges securing traditional auto loans, particularly those with less-than-perfect credit. By providing in-house funding, DriveTime aims to streamline the process and eliminate the need for third-party lenders, which can appeal to buyers looking for simplicity and quick approvals. The flexibility in loan terms and the ease of applying online make DriveTime an accessible option, allowing customers to explore financing options without a stringent credit score requirement. For those who value a straightforward car buying experience and appreciate having multiple dealership locations nationwide, DriveTime provides a practical alternative.

However, potential buyers should be aware of some limitations when considering DriveTime, especially regarding vehicle quality and the scope of warranty coverage. Although the company offers options like the five-day money-back guarantee and various warranty plans, some customers have reported issues with mechanical reliability and unexpected repair costs. For this reason, it’s essential for buyers to ask detailed questions about what is and isn’t covered under warranty and to thoroughly inspect the vehicle before finalizing the purchase. DriveTime’s lack of upfront transparency regarding specific costs and loan terms has also been a point of frustration for some, suggesting that careful review and understanding of all terms are necessary steps.

DriveTime can be a viable option for individuals looking to finance a used vehicle with flexible terms, especially if traditional lenders may not be accessible due to credit concerns. However, potential customers must balance the advantages of flexible financing with the possible drawbacks related to vehicle quality and customer service. By conducting thorough research, reading customer reviews, and reviewing all terms and conditions, buyers can better assess whether DriveTime fits their car-buying needs. Understanding these factors will help ensure the financing and vehicle they choose to align with their expectations and long-term goals.

You can learn more about other auto loan providers through our extensive reviews, where we go into detail about their services and reputation in the industry. Our auto loan blog offers more information about auto loan services and how they can help you buy your new vehicle. Additionally, our unique comparison tool will help you stack your top two choices against each other to make your decision much easier.