What Passport Auto Group Is

Passport Auto Group is a used-car dealership chain operating across multiple states, primarily in the Southeast and Midwest. The company buys, reconditions, and sells used vehicles, typically in the $5,000 to $25,000 price range, and offers in-house financing to buyers who may not may have access to for traditional bank loans.

The dealership operates under a buy-here-pay-here model, meaning it both sells the vehicle and finances the purchase directly. This structure lets Passport approve buyers with poor credit, no credit history, or recent financial problems — situations where a bank would typically decline. The trade-off is higher interest rates and stricter payment terms than you would find through a bank or credit union.

Passport Auto Group locations operate as independent franchises under the Passport brand, so policies, inventory, pricing, and financing terms can vary between locations. A dealership in Tennessee may have different vehicle selection and loan structures than one in Ohio. This variation matters when you are comparing offers or understanding what to expect.

Key Takeaways

  • Passport Auto Group finances its own vehicle sales, which means it can approve buyers with poor or no credit history, but interest rates are typically 18% to 29% or higher depending on your credit profile and the location.
  • The dealership uses GPS tracking and starter interrupt devices on financed vehicles, allowing them to disable the car if you miss a payment — a practice legal in most states but not all.
  • Payment plans are usually weekly or bi-weekly rather than monthly, and missing even one payment can trigger vehicle disablement or repossession.
  • Vehicle prices at Passport are often higher than comparable cars at other used-car dealers, reflecting the cost of in-house financing and the risk the dealership takes on buyers with poor credit.
  • Each Passport location operates independently, so you should compare terms, vehicle condition, and pricing across multiple locations before committing to a purchase.

How Passport's Financing Structure Works

When you buy a vehicle from Passport Auto Group, you are borrowing money directly from that dealership location, not from a bank or credit union. The dealership holds the title to the car until you pay off the loan in full. This arrangement gives Passport significant control over the vehicle and your payment obligations.

Interest rates typically range from 18% to 29% annually, though some locations charge higher rates depending on your credit history, income, and the vehicle's price. A $10,000 car financed at 24% over 60 months would cost roughly $12,400 in total payments — the extra $2,400 is interest. Rates vary by location and individual circumstances, so you should ask for the full loan agreement before signing anything.

Payment schedules are usually weekly or bi-weekly, not monthly. This means you might pay $150 every Friday rather than $650 once a month. The shorter payment cycle is designed to keep you current and reduce the dealership's risk, but it also means more frequent trips to the dealership or more frequent automatic withdrawals from your bank account.

GPS Tracking and Starter Interrupt Devices

Most Passport Auto Group vehicles come equipped with a GPS tracking device and a starter interrupt device (also called a kill switch). The GPS lets the dealership know where your car is at all times. The starter interrupt allows the dealership to remotely disable the engine if you miss a payment.

If you fall behind on a payment, Passport can disable your vehicle without warning or court involvement. You would turn the key and the car straightforward would not start. To restore it, you typically must go to the dealership, make the missed payment plus a reactivation fee (often $50 to $100), and have the device reset.

This practice is legal in most states, but not all. Some states restrict or prohibit starter interrupt devices, and a few require the dealership to give you notice and a grace period before disabling the vehicle. Before you sign a contract, ask the dealership whether your state allows starter interrupt and what notice period, if any, applies. Your state's attorney general office or a local legal aid organization can tell you what the law is where you live.

Vehicle Pricing and Condition

Passport Auto Group vehicles are typically priced 10% to 25% higher than the same model and year would cost at a traditional used-car lot or private sale. A 2018 Honda Civic that might sell for $9,000 elsewhere could be priced at $10,500 or $11,000 at Passport. The markup reflects the cost of in-house financing, the risk the dealership takes on buyers with poor credit, and the overhead of GPS and starter interrupt technology.

The dealership does recondition vehicles before sale — meaning it replaces worn brakes, fixes obvious mechanical problems, and cleans the interior. However, "reconditioned" does not mean the car is in excellent condition or that all potential problems have been found. Many Passport vehicles are sold as-is with limited or no warranty, meaning if something breaks after you drive off the lot, the repair is your responsibility.

Before you buy, have an independent mechanic inspect the vehicle. This costs $100 to $200 but can save you thousands if the car has hidden transmission problems, engine issues, or frame damage. Do not rely on the dealership's inspection or assurances about the car's condition.

What Happens If You Miss a Payment

Missing even one payment at Passport Auto Group has when ready consequences. The dealership can disable your vehicle using the starter interrupt device, usually within 24 to 48 hours of the missed payment. You lose access to the car until you pay the missed amount plus a reactivation fee.

If you miss multiple payments or do not reactivate the vehicle, Passport can repossess the car. Repossession is legal and does not require a court order in most states. The dealership can send a tow truck to your home or workplace, take the vehicle, and sell it to recover what you owe. You may still owe the difference between what the car sells for and what you owe on the loan — called a deficiency judgment.

Repossession also damages your credit report for seven years, making it harder and more expensive to borrow money for a car, home, or credit card in the future. If you are struggling to make payments, contact the dealership when ready. Some locations will work with you to restructure the loan or extend the payment schedule, but you have to ask before you miss a payment.

Comparing Passport to Other Financing Options

If you have poor credit or no credit history, Passport is not your only option. Credit unions, some banks, and online lenders also offer car loans to borrowers with credit challenges, often at lower interest rates than Passport charges. A credit union might offer 15% to 20% interest, compared to Passport's 18% to 29%.

You can also buy a used car from a traditional dealership or private seller and then finance it through a credit union or online lender. This approach lets you shop for the best price on the vehicle and the best rate on the loan separately, rather than accepting both from one dealership.

If you do not need a car when ready, building your credit score for three to six months by paying down existing debt or becoming an authorized user on someone else's credit card can lower the interest rate you may have access to for. A 3% or 4% difference in interest rate saves hundreds of dollars over the life of a loan.

Understanding the Contract Before You Sign

Passport Auto Group contracts are lengthy and include terms about the starter interrupt device, payment schedule, late fees, repossession, and your rights if the vehicle breaks down. Read the entire contract before you sign, and ask the dealership to explain any section you do not understand. Do not sign anything you have not read.

Key sections to focus on: the interest rate and total amount you will pay, the payment amount and due date, late fees (often $25 to $50 per missed payment), the dealership's right to disable or repossess the vehicle, and any warranty or may provide on the vehicle itself. Some contracts include a "cooling-off period" that lets you return the car within a few days if you change your mind, but this is not required by law in most states.

If you do not understand something or disagree with a term, do not sign. Walk away and shop elsewhere. A dealership that pressures you to sign without reading or understanding the contract is a red flag.

Frequently Asked Questions

Can Passport Auto Group disable my car if I am one day late on a payment?

Legally, yes — the contract you sign gives them the right to use the starter interrupt device. In practice, most dealerships wait 24 to 48 hours after a missed payment before disabling the vehicle, giving you a short window to make the payment. However, you should not rely on this grace period. If you know you will be late, contact the dealership before the payment is due.

What is the typical interest rate at Passport Auto Group?

Interest rates typically range from 18% to 29% annually, depending on your credit history, income, the vehicle price, and the specific location. Rates vary by dealership and individual circumstances. Ask for the exact rate and total cost before you sign the contract.

Can I pay off my Passport loan early without a penalty?

Most Passport contracts do not charge a prepayment penalty, meaning you can pay off the loan early without extra fees. However, you should confirm this in your contract before you sign. Paying off early saves you interest and gets you the title to the car sooner.

What should I do if the car breaks down after I buy it?

Most Passport vehicles are sold as-is with no warranty, meaning repairs are your responsibility. Before you buy, have an independent mechanic inspect the vehicle. After purchase, you can take the car to any mechanic you choose — you are not required to use Passport's service department.

Is there a way to remove the GPS and starter interrupt device?

Removing or disabling these devices is illegal in most states and violates your loan contract. Doing so can result in when ready repossession and criminal charges. If you have concerns about the devices, discuss them with the dealership before you buy the car.