Local Cheap Used Car Lots

Many local used car lots offer no credit check in house car financing. These we finance car dealers will tote the note. Most self financing car dealerships also have rent to own cheap used cars on the lot. If you do not qualify for bank financing dealers with on the lot financing may be your best bet.

Rent to Own vs. Tote the Note Financing

The primary difference from rent to own car lots (RTO) and tote the note (TTN) car dealers is how the transaction is taxed. With RTO, you do not own the vehicle, the local car lot does. Since you do not own the vehicle you do not have to pay sales tax on the price or value of the car.

With a TTN transaction, however, you do own the automobile so you are responsible for paying taxes on the sales price. Many dealers will lend money to purchase a car on their lot, but it is rare that they will lend you the money to pay the sales tax. That being said, if you have little money for a down payment, the RTO option may be best for you.



In either case, it is unlikely the self financing dealership will have no money down programs. With the RTO option expect to have 2 times the monthly rental payment and any state licensing fee's upfront. With the TTN option expect to have roughly ten percent of the sales price as a down payment.