What Secured Auto Group Does

Secured Auto Group is a subprime auto lender — a company that finances car purchases for people with poor credit, no credit history, or recent financial problems. Unlike traditional banks or credit unions, they lend to borrowers that mainstream lenders turn down. In exchange, they charge higher interest rates and often require a down payment.

The company operates in multiple states and works through a network of dealerships. You do not go directly to Secured Auto Group; instead, you buy a car from a dealership partner, and the dealership arranges financing through Secured Auto Group's lending programs. The dealership handles the paperwork, and Secured Auto Group funds the loan.

Like other subprime lenders, Secured Auto Group uses GPS tracking devices and starter interrupt technology — systems that can disable your car if you miss a payment. These tools are standard in the subprime auto market and are disclosed in your loan contract, but they are worth understanding before you sign.

Key Takeaways

  • Secured Auto Group finances car purchases through dealership partners, not directly to consumers, and targets borrowers with poor or limited credit history.
  • Interest rates are significantly higher than traditional auto loans because the lender is taking on more risk, and rates vary based on your credit profile and down payment size.
  • Most Secured Auto Group loans include GPS tracking and starter interrupt devices that allow the lender to monitor your vehicle and disable it if you fall behind on payments.
  • Your loan contract will spell out the exact terms, payment amount, interest rate, and conditions under which the lender can use these devices — read it carefully before signing.
  • If you miss payments, the lender can repossess your car, and you may still owe the difference between what the car sells for at auction and what you owe on the loan.

How Interest Rates and Down Payments Work

Secured Auto Group's interest rates depend on your credit score, income, employment history, and the size of your down payment. Subprime rates typically range much higher than prime auto loans, but the exact number you receive is based on your individual profile. A larger down payment usually lowers your interest rate because it reduces the lender's risk.

The dealership will present you with a loan offer that shows your interest rate, monthly payment, loan term (usually 36 to 84 months), and total amount financed. Before you sign, compare this offer to what other lenders might offer. Credit unions, banks, and other subprime lenders may have different rates for your situation. You have the right to shop around, even after a dealership has quoted you a rate.

Down payment requirements vary. Some Secured Auto Group dealers require 10 to 20 percent down, while others may accept less. A larger down payment reduces your monthly payment and the total interest you pay over the life of the loan, so it is worth saving for if you can.

GPS Tracking and Starter Interrupt Devices

Most subprime auto loans, including those from Secured Auto Group, come with two technologies installed in the vehicle: a GPS tracker and a starter interrupt device. The GPS tracker lets the lender know where your car is at all times. The starter interrupt is a system that can prevent your engine from starting if you miss a payment or fall behind on your loan.

These devices are legal and are disclosed in your loan contract. The lender can set up the starter interrupt only under specific conditions spelled out in your agreement — typically after you miss one or more payments and the lender has notified you. However, the exact trigger varies by lender and by state. Some lenders use it only as a last resort before repossession; others may set up it sooner.

Before you sign a loan contract, ask the dealership or lender exactly when and how the starter interrupt can be used. Ask whether there is a grace period after a missed payment, whether you can call to have it disabled if you make a payment, and what the process is. Understanding these details now prevents surprises later.

Repossession and What Happens After

If you fall significantly behind on payments, Secured Auto Group can repossess your car. Repossession means the lender takes back the vehicle without going to court. Once the car is repossessed, the lender sells it at auction. The money from that sale goes toward what you owe on the loan.

The problem is that auction prices are usually much lower than what you owe. If you owe $10,000 on the loan and the car sells for $6,000 at auction, you still owe the $4,000 difference — called a deficiency. The lender can pursue you for this amount through collection efforts or a lawsuit. This deficiency can damage your credit further and lead to wage garnishment in some states.

Repossession also appears on your credit report and stays there for seven years. It makes future borrowing much harder and more expensive. If you are struggling to make payments, contact the lender when ready to discuss options like a payment plan or loan modification before repossession happens.

Your Rights as a Borrower

Federal law requires lenders to disclose the terms of your loan clearly before you sign. You have the right to review the full contract, ask questions, and take time to read it before committing. You also have the right to shop around and compare offers from different lenders — do not feel pressured to accept the first offer a dealership presents.

Under the Truth in Lending Act, the lender must disclose the annual percentage rate (APR), the finance charge, the payment schedule, and any fees. Under the Equal Credit Opportunity Act, the lender cannot discriminate based on race, color, religion, national origin, sex, marital status, or age. If you believe you have been discriminated against, you can file a complaint with the Consumer Financial Protection Bureau.

If you are having trouble making payments, contact your lender as soon as possible. Many lenders offer forbearance, payment deferrals, or loan modifications. Waiting until you are far behind makes these options less likely. Keep records of all communications with the lender in case a dispute arises later.

Comparing Secured Auto Group to Other Lenders

Secured Auto Group is one of many subprime auto lenders. Others include Santander Consumer USA, Westlake Services, and regional lenders. Each has different rates, terms, and policies around starter interrupt devices. Before you finance through any dealership, ask whether you can get a loan from a credit union or bank instead — these often have lower rates for subprime borrowers.

Credit unions typically offer lower rates than subprime lenders and may be more flexible if you hit financial trouble. If you have a bank account or any relationship with a credit union, contact them first to see what they can offer. Even if their rate is higher than you hoped, it may still be lower than a subprime lender's rate.

If subprime financing is your only option, compare offers from multiple dealerships before you decide. Different dealerships may have access to different lenders or different loan programs, so the rate you get at one dealership may differ from another. Take the time to shop — the difference in interest rate can save you hundreds or thousands of dollars over the life of the loan.

Red Flags and Common Pitfalls

Be cautious of dealerships that pressure you to sign quickly, claim they can may provide approval, or ask you to sign blank forms. Legitimate lenders take time to review your information and provide clear, written offers. If a dealership is rushing you or being evasive about terms, walk away.

Watch out for add-on products like extended warranties, gap insurance, or paint protection that the dealership tries to bundle into your loan. These products increase your total loan amount and the interest you pay. Some are useful — gap insurance, for example, can protect you if your car is totaled — but others are overpriced. Ask for the cost of each add-on separately and decide whether you actually need it.

Do not agree to a loan term longer than necessary just to lower your monthly payment. A 72-month or 84-month loan means you are paying interest for much longer. You may also end up owing more than the car is worth for most of the loan period, which creates problems if you need to sell or trade it in early.

Frequently Asked Questions

Can I pay off a Secured Auto Group loan early without a penalty?

Most auto loans allow early payoff, but some include a prepayment penalty. Check your loan contract to see whether paying off the loan early costs you extra. If there is no penalty, paying early saves you money on interest. Call the lender to confirm the exact payoff amount before you send a payment.

What happens if I miss one payment?

Missing one payment will likely trigger a late fee and may set up the starter interrupt device, depending on your contract terms. It will also be reported to the credit bureaus and damage your credit score. Contact the lender when ready to make the payment or discuss a payment plan before the situation gets worse.

Can the lender disable my car without warning?

The lender can only set up the starter interrupt under the conditions spelled out in your contract. Most require notice and an opportunity to pay before disabling the vehicle, but the exact process varies. Read your contract carefully to understand when and how this can happen, and ask the dealership to explain it before you sign.

What if I want to return the car after I buy it?

Auto loans do not have a cooling-off period like some other consumer contracts. Once you sign the loan and drive off the lot, you own the car and owe the full loan amount. You cannot straightforward return it. If you change your mind, your only option is to sell the car privately and use the proceeds to pay off the loan, but you may owe money if the sale price is less than what you owe.

How do I know if Secured Auto Group is available in my state?

Secured Auto Group operates through dealership partners, so availability depends on whether there are partner dealerships near you. Ask a local used car dealership whether they work with Secured Auto Group. You can also contact the company directly to ask which dealerships in your area are partners, though you will need to go through a dealership to get a loan.