What Performance Auto Group Is

Performance Auto Group is a used-car dealership chain operating across multiple states, primarily in the Midwest and South. The company buys, reconditions, and sells used vehicles through physical lots and an online platform. Like most used-car retailers, Performance Auto Group finances purchases through third-party lenders and handles the sale, title transfer, and delivery logistics.

The dealership focuses on vehicles in the $5,000 to $25,000 price range, though inventory varies by location. Customers can browse inventory online, visit a physical lot, or work with sales staff remotely. The company advertises "no credit" financing options, meaning it will work with buyers who have poor credit, no credit history, or recent financial problems — a common selling point among used-car chains.

Understanding how Performance Auto Group operates, what its financing terms typically look like, and what protections you have as a buyer will help you make an informed decision about whether to purchase from them.

Key Takeaways

  • Performance Auto Group is a used-car dealership that finances its own sales through third-party lenders, not through bank loans you arrange yourself.
  • The dealership advertises financing for buyers with poor or no credit, but interest rates and down payments are typically higher than traditional bank loans.
  • You have the right to inspect any vehicle before purchase and to cancel within a short window (usually 3 to 7 days depending on state law) if the car has undisclosed mechanical problems.
  • All used-car purchases are subject to state lemon laws and consumer protection rules; Performance Auto Group must disclose known defects and cannot misrepresent a vehicle's condition or history.
  • Before signing, review the full contract, confirm the interest rate and total cost, and check the vehicle history report yourself using a third-party service.

How Performance Auto Group Finances Purchases

Performance Auto Group does not lend money directly. Instead, it arranges financing through third-party lenders — typically finance companies or credit unions that specialize in subprime auto loans (loans to borrowers with lower credit scores). The dealership acts as the intermediary: it sells you the car and then sells the loan contract to a lender.

This arrangement means the dealership has an incentive to approve as many buyers as possible, because it earns a commission when a loan is funded. As a result, Performance Auto Group can approve buyers with credit scores below 600, recent bankruptcies, or no credit history at all. However, this convenience comes at a cost: interest rates are substantially higher than what a borrower with good credit would pay at a bank.

Interest rates on subprime auto loans typically range from 15% to 29%, depending on your credit score, the loan term, and the vehicle's age and value. A $10,000 loan at 20% over 60 months costs roughly $2,200 in interest alone. Before you sign, ask Performance Auto Group for the full loan disclosure, which must show the interest rate, monthly payment, total amount financed, and the total cost of the loan.

Down Payments and Trade-In Policies

Performance Auto Group typically requires a down payment, though the amount varies by location and the vehicle's price. Down payments often range from $500 to $2,000, but some dealerships advertise "zero down" promotions for may have access to buyers. A larger down payment reduces the amount you finance and lowers your monthly payment and total interest cost.

If you have a vehicle to trade in, Performance Auto Group will assess its value and explore it toward your down payment. The dealership's trade-in offer may be lower than what you could get selling the car privately, because the dealership must recondition it and resell it. You can always decline the trade-in offer and sell the vehicle yourself, then use that money as your down payment.

Before agreeing to a trade-in value, check what similar vehicles are selling for on Kelley Blue Book or NADA Guides. This gives you a baseline to negotiate from and helps you spot if the dealership is undervaluing your car.

Vehicle History, Inspections, and Warranties

Performance Auto Group is required by law to disclose known mechanical problems and to provide a vehicle history report (usually from Carfax or AutoCheck) before you buy. However, "known" is the key word: the dealership must disclose defects it has discovered, but it is not responsible for hidden problems that have not yet appeared.

Before signing, request a full vehicle history report and review it yourself. Look for accident history, title issues (salvage, flood, or branded titles), service records, and odometer readings. If the report shows an accident or major repair, ask the dealership for documentation of the repair work done.

You also have the right to have the vehicle inspected by a mechanic of your choice before purchase. Most dealerships allow a pre-purchase inspection, though some charge a fee or require it to happen on-site. A mechanic can identify mechanical problems that a history report will not catch. This inspection is one of the most important steps you can take.

Performance Auto Group typically offers a limited warranty on used vehicles, often 30 to 90 days on powertrain components (engine, transmission, drivetrain). The exact terms depend on the vehicle's age and mileage. Read the warranty document carefully to understand what is and is not covered.

State Lemon Laws and Your Right to Cancel

Every state has a lemon law that protects used-car buyers. These laws vary by state, but most allow you to cancel a purchase or return the vehicle within a short window (typically 3 to 7 days) if the car has a serious mechanical defect that was not disclosed before you bought it.

To use a lemon law, you must act quickly. Document the problem with photos or a mechanic's report, notify the dealership in writing (email or certified mail), and keep copies of all communication. Some states require you to give the dealership a chance to repair the problem before you can cancel; others allow cancellation outright if the defect is severe.

Performance Auto Group must comply with your state's lemon law. If you believe you have a valid claim, contact your state's attorney general's office or consumer protection agency for guidance on the specific rules in your state.

Contract Terms and Red Flags to Watch

Before you sign a contract, read every page. The contract will include the vehicle description, price, down payment, interest rate, loan term, monthly payment, total amount financed, and any add-ons (extended warranty, gap insurance, paint protection, etc.). Do not sign anything you do not understand.

Common red flags include: an interest rate that is significantly higher than what you were quoted verbally; add-ons you did not agree to; a vehicle description that does not match the car you are buying; or a contract that says "as-is" with no warranty. If you spot a discrepancy, ask the dealership to correct it before you sign.

Gap insurance (which covers the difference between what you owe on the loan and what the car is worth if it is totaled) is optional but worth considering if you are financing most of the purchase price. Extended warranties are also optional and often overpriced; weigh the cost against the vehicle's age and your risk tolerance.

What Happens After You Buy

After you sign, Performance Auto Group will handle the title transfer and registration on your behalf (in most states). This process typically takes 1 to 3 weeks. You will receive the title and registration documents by mail. Do not drive the car without temporary tags or a temporary registration provided by the dealership.

Your loan payments will be due to the lender, not to Performance Auto Group. The lender will send you payment instructions and a loan agreement. Set up automatic payments or calendar reminders to avoid missing a payment, which can damage your credit and trigger late fees.

If you have a problem with the vehicle after purchase, contact Performance Auto Group's customer service department first. If the dealership does not resolve the issue and you believe it is covered under the warranty or your state's lemon law, escalate to your state's attorney general or consumer protection agency.

Frequently Asked Questions

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

Most used-car dealerships, including Performance Auto Group, do not offer a general "return for any reason" policy. However, you may have the right to cancel under your state's lemon law if the vehicle has an undisclosed mechanical defect. Check your state's specific rules and act within the allowed timeframe.

What if my loan is denied after I sign the contract?

If the lender denies your loan process after you have signed, the contract is typically void and you are not obligated to buy the car. However, you may lose your down payment if the dealership's terms state that the down payment is non-refundable in case of loan denial. Review the contract carefully before signing.

Does Performance Auto Group report payments to credit bureaus?

Yes, most subprime lenders report loan payments to the three major credit bureaus (Equifax, Experian, TransUnion). Making on-time payments will help build or rebuild your credit. Missing payments will damage your credit score and may result in repossession.

Can I pay off my loan early without a penalty?

Many subprime auto loans do not have prepayment penalties, but some do. Check your loan agreement or contact the lender to confirm. Paying off early saves you interest and can improve your credit faster.

What should I do if the odometer reading on the contract does not match the car?

Odometer fraud is illegal. If you notice a discrepancy, photograph the odometer, document the mileage on the contract, and contact Performance Auto Group when ready in writing. If the dealership does not correct it, report the issue to your state's attorney general or the National Highway Traffic Safety Administration (NHTSA).