Priority Auto Group is a used-car dealership chain, not a loan program or financial service
Priority Auto Group is a network of used-car dealerships operating across multiple states. The company buys, sells, and finances vehicles, and advertises heavily to people with poor credit or no credit history. If you have seen their ads online or on billboards, they position themselves as a place where you can get a car even if traditional lenders have turned you down.
The dealership does not lend money itself in the way a bank does. Instead, Priority Auto Group arranges financing through third-party lenders — companies that specialize in high-risk auto loans. This is an important distinction: when you buy a car there, you are working with a dealership that connects you to a lender, not with a lender directly.
Understanding how Priority Auto Group operates, what it costs, and what your obligations are will help you decide whether buying from them makes sense for your situation.
Key Takeaways
- Priority Auto Group is a used-car dealership that arranges financing through third-party lenders, not a lender itself.
- The dealership targets buyers with poor credit, no credit history, or recent financial problems by offering in-house financing arrangements.
- Interest rates and loan terms vary widely depending on your credit history, down payment, and the lender Priority Auto Group partners with.
- You should compare the total cost of the loan — not just the monthly payment — against other dealerships and traditional lenders before deciding.
- GPS tracking devices and starter interrupt devices are common on Priority Auto Group loans and allow the lender to monitor or disable the vehicle if you miss payments.
How Priority Auto Group finances vehicles
When you buy a car from Priority Auto Group, the dealership acts as a middleman between you and a lender. You do not borrow money from Priority Auto Group directly. Instead, the dealership identifies a third-party lender willing to finance your purchase, and that lender provides the money to buy the car.
This model exists because traditional banks often decline loan applications from people with low credit scores, recent defaults, or no credit history. Priority Auto Group's lending partners accept higher risk in exchange for higher interest rates and stricter loan terms. The dealership makes money by marking up the vehicle price and by earning a commission from the lender for arranging the deal.
The financing agreement you sign is with the lender, not with Priority Auto Group, though the dealership handles the paperwork and negotiation. This means the lender — not the dealership — owns the legal right to repossess the vehicle if you fall behind on payments.
Interest rates and total loan costs
Interest rates on Priority Auto Group loans are typically much higher than rates offered by banks or credit unions to borrowers with good credit. Rates vary based on your credit score, the size of your down payment, the age and condition of the vehicle, and the specific lender involved. There is no single "Priority Auto Group rate" — each loan is priced individually.
The total cost of a loan depends on three things: the purchase price of the vehicle, the interest rate, and the length of the loan. A higher interest rate or a longer loan term both increase how much you pay overall. For example, a $10,000 car financed at 15% interest over five years costs significantly more than the same car financed at 8% over three years.
Before signing, ask the dealership for the annual percentage rate (APR), the total amount you will pay over the life of the loan, and the monthly payment. Compare these numbers against other dealerships and against loans from banks or credit unions, even if you think you will be turned down. Some lenders offer better rates than others, and shopping around can save you hundreds or thousands of dollars.
Tracking devices and payment enforcement
Many Priority Auto Group loans include a GPS tracking device installed in the vehicle. This device allows the lender to know where the car is at all times. Some loans also include a starter interrupt device — a system that prevents the engine from starting if you miss a payment or fall behind on your loan.
These devices are legal and are disclosed in your loan agreement, but they are worth understanding before you sign. If you miss a payment, the lender can disable your car remotely, leaving you stranded. This is different from traditional loans, where the lender's only recourse is to repossess the vehicle or take you to court.
Read the loan agreement carefully to see whether these devices are included and under what conditions they can be activated. Ask the dealership how much notice you receive before a starter interrupt is triggered and whether there is a way to restore the vehicle if it is disabled.
Down payments and vehicle condition
Priority Auto Group typically requires a down payment, though the amount varies. A larger down payment reduces the amount you need to borrow and can lower your interest rate slightly. However, the dealership may pressure you to put down less money so that you can afford a more expensive vehicle — which increases the lender's risk and your total cost.
The vehicles sold by Priority Auto Group are used cars, and their condition varies widely. The dealership is required by law to disclose known mechanical problems, but you should still have any car inspected by a mechanic you trust before you buy it. A $500 inspection can reveal expensive repairs that the dealership did not mention or may not have known about.
Ask about the dealership's return or warranty policy. Some Priority Auto Group locations offer short warranties (often 30 to 90 days), but these are limited and may not cover major repairs. Understand what you are and are not covered for before you drive the car off the lot.
What happens if you miss a payment
If you miss a payment on a Priority Auto Group loan, the lender has several options. First, they may set up the starter interrupt device, preventing you from starting the car. Second, they may attempt to repossess the vehicle. Third, they may pursue legal action against you for the unpaid debt.
Missing even one payment can trigger these actions, depending on the terms of your loan agreement. If the car is repossessed, you may still owe the difference between what the lender sells the car for and what you still owe on the loan — a debt called a deficiency. This means you could lose the car and still be responsible for paying money.
If you are struggling to make payments, contact the lender when ready. Some lenders offer payment deferrals, loan modifications, or temporary forbearance. The earlier you reach out, the more options you may have.
Alternatives to Priority Auto Group
If you have poor credit or no credit history, Priority Auto Group is not your only option. Credit unions often offer auto loans at lower rates than subprime lenders, even to people with credit challenges. Some credit unions have programs specifically designed for members rebuilding credit. You may also find better rates through online lenders that specialize in bad-credit auto loans.
Another option is to buy a less expensive vehicle outright with cash, or to delay your purchase until you have improved your credit score. Paying cash eliminates interest costs entirely, and waiting six to twelve months to rebuild your credit can lower your interest rate significantly.
If you do decide to work with Priority Auto Group, compare their offer against at least two other lenders before signing. The difference in total cost can be substantial, and you deserve to know your options.
Frequently Asked Questions
Does Priority Auto Group report payments to credit bureaus?
Most Priority Auto Group loans are reported to credit bureaus, which means on-time payments can help build your credit history. However, missed payments and repossessions are also reported and will damage your credit score. Confirm with the dealership whether the specific lender they are using reports to the three major bureaus: Equifax, Experian, and TransUnion.
Can I pay off a Priority Auto Group loan early without a penalty?
Some loans allow early payoff without penalty, while others charge a prepayment fee. Check your loan agreement or ask the dealership before you sign. Paying off early can save you significant interest, so it is worth understanding the terms.
What should I do if the car breaks down shortly after I buy it?
Review your warranty or return policy when ready. If the dealership offered a warranty, file a claim. If the car is still within any return window, ask about returning it. If neither applies, you are responsible for repairs. This is why having a mechanic inspect the car before purchase is so important.
Will Priority Auto Group work with me if I have been denied by other lenders?
Priority Auto Group's lending partners accept borrowers with poor credit, recent defaults, and other risk factors that traditional lenders reject. However, this does not mean you will be approved. The dealership will review your income, employment, and credit history before offering financing.
What is the typical loan term for a Priority Auto Group purchase?
Loan terms typically range from 36 to 72 months, though this varies by lender and your financial situation. Longer terms mean lower monthly payments but higher total interest costs. Ask the dealership what terms are available for your specific situation.