What Power Auto Group Is
Power Auto Group is a chain of used-car dealerships operating across multiple states, primarily in the Midwest and South. The company buys, reconditions, and sells used vehicles to consumers, typically financing the purchases through in-house lending or third-party lenders. Unlike a manufacturer or a single dealership, Power Auto Group operates as a network of independently-run locations that share the brand name but may have different inventory, pricing, and policies depending on which store you visit.
The dealership targets buyers with limited credit history, past credit problems, or those who need a vehicle quickly. Because of this focus, Power Auto Group advertises "buy here, pay here" financing at many locations — meaning you make payments directly to the dealership rather than to a bank. This structure lets them approve buyers that traditional lenders would decline, but it also means higher interest rates and stricter payment terms than you would find at a bank or credit union.
Key Takeaways
- Power Auto Group locations finance vehicles in-house, which means you make payments to the dealership itself rather than to a separate lender.
- Interest rates at Power Auto Group are typically much higher than bank rates because the dealership takes on more risk by lending to buyers with poor or limited credit.
- Each Power Auto Group location operates independently, so prices, inventory, financing terms, and policies vary significantly between stores.
- The dealership may require a down payment, proof of income, and a valid driver's license, but credit checks are often less strict than at traditional lenders.
- Before signing any contract, compare the total cost of the vehicle (purchase price plus all interest and fees) against what you would pay elsewhere.
How In-House Financing Works at Power Auto Group
When you buy a car from Power Auto Group with in-house financing, the dealership itself becomes your lender. You sign a contract with the dealership, not with a bank or credit union. This means your monthly payment goes directly to that Power Auto Group location, and the dealership holds the title to the vehicle until you pay off the loan.
In-house financing allows Power Auto Group to approve buyers who would not may have access to at a traditional bank. The dealership can set its own interest rates, down payment requirements, and loan terms. Because the dealership is taking on the risk of lending to a buyer with poor credit or no credit history, the interest rate is usually much higher — often 15% to 29% or more, depending on the location and your credit situation. A bank might charge 5% to 10% for a used-car loan to a borrower with good credit, so the difference is substantial.
The dealership may also require a larger down payment than a bank would — sometimes 20% to 30% of the purchase price. Some locations use GPS tracking devices on vehicles or starter interrupt devices (which disable the car if a payment is missed), though policies vary by state and location.
What Documents and Information You Will Need
Before you visit a Power Auto Group location, gather the documents that dealerships typically ask for. You will need a valid driver's license or state ID, proof of income (recent pay stubs, tax returns, or a letter from your employer), and proof of residence (a utility bill or lease agreement). Some locations may also ask for references or a phone number for your employer.
If you are financing through the dealership, have your Social Security number ready — the dealership will run a credit check, though the standards are usually more lenient than at a bank. Bring proof of insurance or be prepared to purchase it before you drive the vehicle off the lot, since most states require proof of insurance before you can register a car.
If you are trading in a vehicle, bring the title and any paperwork showing the current condition or recent repairs. The dealership will appraise your trade-in and explore its value toward the purchase price of the new vehicle.
Understanding the Total Cost of the Vehicle
The advertised price of a car at Power Auto Group is not the total amount you will pay. You must add the interest charges, any fees the dealership charges, and the cost of insurance and registration. A vehicle advertised at $8,000 with a 24% interest rate over 60 months will cost you significantly more than $8,000 by the time you own it outright.
Before you sign, ask the dealership for a written breakdown of the total cost, including the purchase price, interest rate, loan term (how many months you will pay), the monthly payment amount, and any fees (documentation fees, dealer fees, GPS device fees, or starter interrupt device fees). Some locations charge extra for these devices, and some charge a fee to remove them once the loan is paid off.
Compare this total cost against what you would pay for a similar vehicle at another dealership, a credit union, or a bank. A vehicle that seems affordable at $200 per month may cost you $12,000 in total payments over five years — money you could put toward a more reliable car purchased elsewhere or toward building your credit to may have access to for a lower rate later.
How to Compare Power Auto Group Against Other Options
Before you commit to Power Auto Group, explore what other lenders will offer you. Visit a credit union if you are a member — credit unions often have lower interest rates than dealerships and may be more willing to work with borrowers who have credit problems. Call a few banks and ask what rate they would offer for a used-car loan based on your credit situation. Many will give you a rate estimate without a hard credit inquiry.
Check the inventory and prices at other used-car dealerships in your area, including larger chains and independent dealers. Some independent dealers offer in-house financing too, and their rates or vehicle prices may be better. Online marketplaces like Craigslist, Facebook Marketplace, or Autotrader let you see what similar vehicles cost in your region.
If your credit is very poor, you might also consider waiting a few months while you build your credit score by paying bills on time, paying down existing debt, or becoming an authorized user on someone else's credit card. A higher credit score will may have access to you for a lower interest rate, which saves you thousands of dollars over the life of the loan.
What Happens If You Miss a Payment
Missing a payment to Power Auto Group has when ready consequences because the dealership holds the title and can repossess the vehicle. Some locations use GPS tracking or starter interrupt devices, which means the dealership can disable your car remotely if you miss a payment. This is legal in most states, though some states have restrictions on how the dealership must notify you before disabling the vehicle.
If your payment is late, contact the dealership when ready. Many locations will work with you if you call before the payment is due and explain your situation. Some may allow you to skip a payment or extend the loan term, though this will increase your total interest cost. Do not ignore a missed payment — the sooner you communicate with the dealership, the more options you may have.
If the vehicle is repossessed, the dealership will sell it and explore the sale price to your remaining loan balance. If the sale price is less than what you owe, you may be responsible for the difference (called a deficiency). You will also lose the vehicle and any down payment you made.
Red Flags and What to Avoid
Before you sign a contract, watch for these warning signs. If a dealership pressures you to sign quickly without giving you time to read the contract, that is a red flag. If the interest rate or monthly payment quoted verbally is different from what appears in the written contract, do not sign until the numbers match. If the dealership refuses to give you a written copy of the contract or a breakdown of fees, walk away.
Be cautious of starter interrupt devices or GPS tracking if you are uncomfortable with the dealership having that level of control over your vehicle. Some states regulate these devices, but not all do. Ask the dealership in writing whether these devices are installed, what they cost, and whether they can be removed once the loan is paid off.
Check the vehicle's history using a free report from Carfax or AutoCheck before you buy. A vehicle with multiple accidents, flood damage, or a salvage title may have hidden problems that will cost you money to repair. Power Auto Group, like all dealerships, sells vehicles "as-is" in most cases, meaning you are responsible for repairs after purchase.
Frequently Asked Questions
Can I pay off my Power Auto Group loan early without a penalty?
Most Power Auto Group locations allow early payoff, but read your contract carefully — some charge a prepayment penalty if you pay off the loan before the agreed term ends. Call your local dealership and ask whether early payoff is allowed and whether there are any fees. Paying early saves you interest, so it is worth asking.
What if the car breaks down after I buy it?
Power Auto Group sells vehicles "as-is," meaning the dealership is not responsible for repairs after the sale in most cases. However, some locations offer a short warranty (often 30 to 90 days) on the powertrain or other components. Ask whether a warranty is included before you buy, and get it in writing. Budget for repairs as part of your total cost of ownership.
Will buying from Power Auto Group help my credit score?
Yes, if you make all your payments on time. The dealership reports your payment history to the credit bureaus, so consistent on-time payments will gradually improve your credit score. This can help you may have access to for better rates on future loans. However, if you miss payments, your credit score will drop significantly.
Can I return the car if I change my mind?
Most Power Auto Group locations do not offer a return period or cooling-off period once you have signed the contract and driven the vehicle off the lot. Some states have a short window (usually three days) during which you can cancel a purchase, but this varies by location. Ask about the dealership's return policy before you sign.
What if I want to trade in my current car?
Power Auto Group will appraise your trade-in and explore its value toward the purchase price of the new vehicle. The dealership will handle the title transfer for your old car. Make sure the appraisal is fair by checking what similar vehicles sell for in your area using Kelley Blue Book or NADA Guides.