Thinking about buying a car from DriveTime but wondering if they’re the real deal? You’re smart to do your homework. With so many opinions floating around online, it’s tough to know if DriveTime is a legitimate option or if you should steer clear. I’ve dug through thousands of customer reviews and company data to give you the straight facts.
What Is DriveTime and How Do They Operate?
DriveTime is one of America’s largest used car dealership networks that focuses on helping people with bad credit. Founded in 2002 (previously operating as Ugly Duckling), they’ve grown to over 145 locations across 26+ states and have served more than 4 million customers.
Their business model is different from traditional dealerships in a few key ways:
- They offer in-house financing through their partner Bridgecrest
- They employ salaried “Customer Experience Guides” instead of commission-based salespeople
- They specifically target customers with poor credit who can’t get approved elsewhere
- They control the entire process from car sales to financing to warranties
This “buy-here-pay-here” approach means they can approve customers that traditional banks would reject, but it comes with some significant trade-offs.
DriveTime’s Online Reputation: A Mixed Bag
When you look at DriveTime reviews across different platforms, you’ll see wildly different ratings that tell a complicated story:
| Platform | Rating | Number of Reviews | Key Takeaway |
|---|---|---|---|
| Trustpilot | 4.0/5 stars | ~20,000 | 77% five-star ratings |
| Consumer Affairs | 4.4/5 stars | 9,773 | Generally positive |
| Yelp | 2.3/5 stars | 1,964 | “Generally dissatisfied” |
| Better Business Bureau | N/A | 784 complaints | Responds to complaints |
| Bridgecrest (financing) | 1.2/5 stars | 405 (Sitejabber) | Extremely negative |
This split personality in ratings suggests customers often have very different experiences. Many love the initial buying process but run into problems after purchase, especially with financing and vehicle quality.
What DriveTime Gets Right
Customer-Friendly Buying Process
Many customers praise DriveTime for making car buying less stressful, especially for those with credit challenges. Their non-commissioned sales approach removes some of the high-pressure tactics common at other dealerships.
Recent positive reviews frequently mention staff by name and highlight their helpfulness. As one customer noted on Trustpilot: “Everyone at DriveTime was great start to finish but our sales associate Gabi in particular was amazing. She really knew her stuff and did whatever she could to make the process go easier.”
Access for Credit-Challenged Customers
Let’s be real—if you have bad credit, your options are limited. DriveTime provides access to vehicles when traditional lenders say no. For many customers, DriveTime represents their only path to car ownership, which explains why some people are grateful despite tough terms.
Responsive to Complaints
When issues arise, DriveTime generally responds to formal complaints through channels like the Better Business Bureau. While their solutions don’t always satisfy customers, they do acknowledge problems rather than ignoring them.
Major Red Flags to Consider
Vehicle Quality Concerns
Vehicle quality is DriveTime’s most consistent problem across all review platforms. Customers frequently report serious mechanical issues shortly after purchase:
- Engine failures within months of purchase
- Transmission problems requiring complete replacements
- Electrical and safety issues appearing almost immediately
One customer reported needing a new transmission within two months of purchase, followed by multiple replacement transmissions that wouldn’t program correctly. Another faced complete engine failure after just four months.
These issues raise questions about DriveTime’s inspection process. Despite claims of thorough 14-day inspections at 24 inspection centers, many customers discover undisclosed problems that should have been caught before sale.
High Interest Rates and Financing Problems
DriveTime’s financing through Bridgecrest receives the harshest criticism. Interest rates typically range from 16% to 24.9%, with many customers reporting rates at the highest end. The daily interest calculation method particularly frustrates customers who make payments but see minimal principal reduction.
The math can be shocking. One customer detailed paying $11,000 over two years on a $14,000 loan while still owing $15,000. Another reported paying $18,000 over four years on a vehicle that required a new engine, feeling “ripped off for over 18000.”
Down Payment Surprises
A recurring complaint involves dramatic changes in down payment requirements between online pre-approval and in-person visits. Customers report getting online approvals showing low down payments (like $295-$495) that balloon to $5,000-$11,000 at the dealership.
While DriveTime explains these changes are based on vehicle selection and verification, many customers feel misled by the initial marketing.
Limited Warranty Coverage
DriveTime offers a 30-day/1,500-mile limited warranty and optional extended coverage through SilverRock. However, customers report frustrating warranty experiences including:
- High deductibles ($100-$200) that make small repairs cost-prohibitive
- Exclusions for “consequential damage” from covered repairs
- Requirements to use specific repair networks, causing delays
- Diagnostic fees customers must pay even when no issues are found
One customer faced cooling system failure two months after purchase but had warranty coverage denied, resulting in $1,000 in out-of-pocket repairs.
Regulatory and Legal Issues
DriveTime’s legal history raises additional concerns. In 2014, the Consumer Financial Protection Bureau (CFPB) hit the company with an $8 million penalty for abusive debt collection practices. The CFPB alleged DriveTime used illegal tactics and inaccurately reported customers to credit bureaus, leading to five years of regulatory supervision.
Auto fraud legal centers have noted cases where DriveTime allegedly failed to provide required fair market value disclosures and proper component warranties. The National Highway Traffic Safety Administration has also received numerous complaints about vehicles sold by DriveTime.
Who Should (and Shouldn’t) Consider DriveTime
DriveTime Might Work For You If:
- You have poor credit and have been rejected by traditional lenders
- You need a vehicle immediately and have limited options
- You understand and accept the high interest rates and risks involved
- You plan to refinance the loan as soon as your credit improves
- You can afford an independent inspection during the return period
DriveTime Is Probably Not Right For You If:
- You qualify for traditional financing with lower interest rates
- You’re looking for a reliable vehicle with minimal maintenance issues
- You can save for a larger down payment to buy privately
- You’re financially vulnerable and can’t absorb unexpected repair costs
- You’re uncomfortable with higher-than-average interest rates
How to Protect Yourself If You Choose DriveTime
If DriveTime is your only option, these steps can help minimize risks:
Before Purchase:
- Get an independent mechanical inspection during the 5-day return period
- Calculate the total loan cost including all interest to understand the true price
- Research the specific vehicle model for known issues or recalls
- Have financing alternatives ready if possible
- Read all contract terms thoroughly before signing
During Purchase:
- Get all promises in writing, not just verbal assurances
- Read warranty terms carefully, including all exclusions and deductibles
- Document any disclosed or observed vehicle issues
- Verify that all paperwork matches what was discussed
After Purchase:
- Address any issues immediately within warranty periods
- Keep detailed records of all communications and repairs
- Look into refinancing options once your credit improves
- Make additional principal payments when possible to reduce interest
Understanding DriveTime’s Business Model
DriveTime’s business structure includes several related companies:
- Carvana (online car sales)
- Bridgecrest (loan servicing)
- SilverRock (warranties and insurance)
This integrated approach lets DriveTime control the entire customer experience but also concentrates issues within the same corporate family. It’s worth noting that DriveTime and Carvana share founders, though they operate as separate companies today.
The core of their business model involves accepting higher risk in exchange for charging higher interest. This approach can work for customers who understand the terms and can improve their credit situation, but it can create debt traps for others.
The Bottom Line: Is DriveTime Legit?
Yes, DriveTime is a legitimate business—they’re not a scam in the traditional sense. They operate legal dealerships, provide real financing, and deliver actual vehicles. However, “legitimate” doesn’t necessarily mean “recommended” or “good value.”
DriveTime fills a genuine market need by serving customers with poor credit, but their business model comes with significant downsides including high interest rates, potential vehicle quality issues, and limited warranty protection.
For consumers with few alternatives, DriveTime may provide access to necessary transportation when other options don’t exist. But customers should approach with eyes wide open, realistic expectations, and thorough preparation to mitigate the substantial financial risks involved.
If you have any other options—saving longer for a down payment, finding a co-signer for traditional financing, or repairing your credit first—those paths likely offer better long-term value than DriveTime’s high-interest approach.
Remember: the best deal isn’t the one that gets you in a car today; it’s the one that serves your financial health over the entire life of the loan.
