magicguy333
Antioch,#2Author of original report
Sun, March 27, 2011
Thanks for your response. I know all dealership run your credit but the case here is that I was told that won't be run the credit and the application I filled out and signed disclosed that it was only for a credit score. So you see they lied at the end.
When I contacted them to tell them about this they told me that nothing they could do about this and that didn't care.
I will be going to somewhere else for a car and looking into getting financed approved as you suggest me ahead of time. Thanks.
MovingForward
Wellington,#3Consumer Comment
Fri, March 18, 2011
Whenever you go to a vehicle dealership and sign the application you are allowing them to run your credit multiple times. The application has (or should have) a disclosure about running your credit and when you sign it, you authorize them to run your credit. Most of the dealers have working relationships with multiple lenders and they will submit your application to all of them! Fortunately, the credit scoring formula takes this into account and treats all the vehicle loan inquires within 30 days as a single inquiry.
Having said that, you are better off going to a credit union and getting your financing lined up before you ever step foot into a dealership.
The dealerships finance department (F&I) is one of the high revenue locations in the dealership. They can take your deal that you worked out with the manager and turn it into a really bad deal. How they do that is by adding in all kinds of fees for things you don't need (you have to tell them no) AND they charge you higher interest than what the bank is willing to charge you in order to increase their profit. They do this by making false statements: for example, 'in order to get this interest rate of X%, you have to take gap insurance and the warranty'. They are not allowed to say this (but they do), so their contract reads that gap and the warranty are voluntary. This is one trick of many.
If you get your financing before you go, you make yourself a cash buyer. You avoid all the add on's the F&I guy tries to plug into the deal AND you know what your payments will be right from the beginning. Also, credit unions give much better financing deals than dealerships (when all the terms are taken into account).
You did the right thing by walking out. Now follow up by getting financing from a CU first!