American Auto Group is a used-car dealership chain, not a lender or financing company

American Auto Group (AAG) operates used-car dealerships across multiple states, primarily selling vehicles to buyers with limited credit history or past credit problems. The company does not lend money itself — instead, it partners with third-party lenders to arrange financing for customers who want to buy a car. Understanding what AAG actually does, and what it does not do, helps you decide whether buying from them makes sense for your situation.

AAG dealerships focus on serving people who have been turned down by traditional car lots or banks. That means their inventory skews toward lower-priced vehicles, often with higher mileage. The trade-off is that financing through AAG typically comes with higher interest rates and stricter terms than you would get with strong credit elsewhere.

Key Takeaways

  • American Auto Group is a used-car dealership chain that arranges financing through partner lenders, not a lender itself.
  • The company targets buyers with poor credit, no credit history, or recent financial problems who cannot get loans from traditional sources.
  • Interest rates and loan terms depend on the third-party lender AAG partners with, which varies by location and your credit profile.
  • You can shop for vehicles at AAG dealerships in person, but you should compare their prices and financing terms against other used-car dealers before deciding.
  • AAG purchases are subject to the same state consumer protection laws as any other car dealership, including return periods and warranty requirements that vary by state.

How AAG arranges financing for car purchases

When you buy a car from American Auto Group, the dealership does not give you the loan. Instead, AAG works with finance companies and banks to find a lender willing to finance your purchase. The lender then pays AAG for the vehicle, and you repay the lender over the loan term.

This arrangement means your interest rate and loan terms come from the lender, not from AAG. Different lenders have different requirements and rates. AAG's job is to match you with a lender from their network — but that network is limited to lenders willing to work with buyers in your credit situation. If you have very poor credit or no credit history, the lenders available to you will charge higher rates than lenders serving borrowers with stronger credit.

Before you sign any paperwork, ask AAG which lender they are working with and what the interest rate will be. You have the right to see the loan terms in writing before you commit. Do not let a salesperson pressure you into signing the same day you visit the lot.

What vehicles AAG typically sells

American Auto Group dealerships stock used cars, trucks, and SUVs, usually priced between $5,000 and $15,000, though this varies by location. Most vehicles have between 80,000 and 150,000 miles on them. The company does not sell new cars.

Because AAG targets buyers with credit challenges, the dealership can afford to buy and sell vehicles that traditional dealers might pass on. That does not mean the cars are unsafe or unreliable — many are perfectly sound — but it does mean you should inspect any vehicle carefully before buying. Ask for a pre-purchase inspection by an independent mechanic if you are unsure about the car's condition. Some AAG locations offer limited warranties, but coverage and duration vary by state and location.

Interest rates and loan terms at American Auto Group

Interest rates for AAG financing depend entirely on the lender AAG partners with and your credit profile. There is no single AAG interest rate. Rates can range from 12% to 29% or higher, depending on how risky the lender considers your loan. Buyers with no credit history or recent defaults typically pay the highest rates.

Loan terms usually run 48 to 72 months (4 to 6 years), though some lenders offer shorter or longer periods. The longer the loan, the more interest you pay overall, even if the monthly payment feels manageable. Before you agree to a loan, calculate the total amount you will pay over the life of the loan — not just the monthly payment.

If you have the option to pay off the loan early without penalty, doing so saves you money on interest. Ask the lender whether early payoff carries a prepayment penalty before you sign.

Comparing AAG to other used-car dealers

American Auto Group is one option for buying a used car when traditional dealerships have turned you down, but it is not your only option. Other used-car dealers, credit unions, and online lenders also work with buyers who have credit challenges. Before you buy from AAG, compare the vehicle price, interest rate, and loan terms against at least one or two other sources.

Credit unions often offer lower interest rates than AAG's partner lenders, even to members with poor credit. If you belong to a credit union, ask whether they offer auto loans and what rates they would offer you. You can also get pre-approved for a loan from a credit union or online lender, then use that approval to shop at any dealership — including AAG — and negotiate from a position of strength.

Local used-car dealers and private sellers may also have vehicles in your price range. The advantage of buying from a private seller is usually a lower price, but you lose any warranty protection and have no recourse if the car breaks down shortly after purchase. Weigh the savings against that risk.

Your rights when buying from American Auto Group

AAG dealerships are subject to state consumer protection laws, just like any other car dealer. Most states require a brief return or inspection period — typically 3 to 10 days — during which you can return the vehicle if you discover a major problem. Some states require dealers to disclose known defects in writing. Check your state's specific rules before you buy.

You have the right to a written copy of the loan agreement, the vehicle title, and any warranty documentation. Do not leave the dealership without these papers. If something in the paperwork does not match what the salesperson told you, ask for clarification in writing before you sign.

If you believe AAG or the lender has treated you unfairly — for example, if you were charged a fee that was not disclosed, or if the vehicle was misrepresented — you can file a complaint with your state's attorney general or consumer protection office. Keep all paperwork from your purchase in case you need it later.

Alternatives if AAG is not the right fit

If AAG's interest rates or vehicle selection do not work for you, consider these alternatives. Credit unions often have lower rates and may be willing to work with you even if you have credit problems. Online lenders like Upstart, LendingClub, and others use alternative credit data and may approve you when traditional lenders will not.

Some nonprofit organizations and community action agencies offer car-buying programs or financial counseling to help you understand your options. A few even help buyers with poor credit find lower-rate loans. Search for "car buying information" or "auto loan help" plus your city or county name to find local programs.

If you cannot afford a car right now, consider whether you truly need one. Public transportation, carpooling, or a short-term car rental might meet your needs at lower cost while you work on rebuilding your credit. A stronger credit score in six months or a year will open up better financing options.

Frequently Asked Questions

Is American Auto Group a scam?

No, AAG is a legitimate dealership chain that has operated for decades. However, like any dealership serving high-risk borrowers, it charges higher interest rates and may sell vehicles with higher mileage. Always inspect the vehicle and review loan terms carefully before buying. If you feel pressured or misled, you can file a complaint with your state's attorney general.

Can I get a better interest rate if I have a co-signer?

Possibly. A co-signer with better credit may help you find a lower rate from AAG's partner lenders. However, the co-signer becomes legally responsible for the loan if you do not pay, so choose someone you trust and who understands the risk. Ask AAG whether adding a co-signer would lower your rate before you explore.

What happens if I miss a payment on an AAG loan?

The lender — not AAG — handles missed payments. Typically, one missed payment triggers a late fee and may damage your credit score. Multiple missed payments can lead to repossession of the vehicle. Contact the lender when ready if you cannot make a payment and ask about hardship options like a payment deferral or loan modification.

Does American Auto Group report payments to credit bureaus?

The lender reports your payment history to credit bureaus, not AAG. Making on-time payments builds your credit score over time, which helps you may have access to for better rates on future loans. Ask the lender whether they report to all three major credit bureaus (Equifax, Experian, and TransUnion) before you sign.

Can I return a car to American Auto Group if I change my mind?

Most states allow a short return or inspection period — usually 3 to 10 days — but this varies. Check your state's consumer protection laws and ask AAG about their specific return policy in writing before you buy. Some dealerships charge a restocking fee or mileage penalty even within the return window.