Is this ok or another car dealer issue???

Question

I went and looked at cars. They pulled my credit report and said I did not qualify for the "special" of the month $2000 down, $299/month x 39 month lease...BUT I did qualify for $2000 down, $560 / month x 72 month purchase!!!! Ok...already know that is CRAZY!!! BUT here is another thing that I just learned...this dealer submitted an application for credit (don't know how much) without my consent...didn't even have a car picked out!! Signed only that they could look at my credit score. I got a denial letter for credit in the mail!! I have no idea what they asked for...how much...what terms etc... I actually walked out of the dealership. What is this all about? Is it normal? Legal?? I am so frustrated with this dealer!!

Answer 1

Perfectly normal, I'm guessing you gave them your license when you were taking a test drive. While you're on your test drive, they run a credit check on you without your knowledge. Common practice with car dealerships.

Answer 2

When you sign the form that allows them to run your credit, you are also giving them permission to find out what banks will let you have the credit. How would they know that you wouldn't qualify for a lease, but qualified for a purchase. Some from a lending company told them. Even with a good credit score, banks or finance companies deny credit. Those special offers for "qualified buyers" is legit, but not always as easy as they make it sound. Just remember, each and every time someone does a credit check, whether it is a dealer or a credit card or a store, it will appear on your report. And each time, you lose a few points in the process. And finally if you have your credit run too many times, it will also reflect all the times it was run, and that will cause banks and finance companies to deny your credit! Theory being..what if you buy something every time your credit was run??
So if there is a next time at a different dealer, don't sign anything until everything is pretty much all set. You have picked out a car, decided on a price etc., then talk about the financing.

Answer 3

1. Don't ever get your financing at the dealer!!! EVER.

When you go to buy a car already have the financing set-up. We used eloan.com several times.

At the dealer only talk about the price of the vehicle you want to buy.

2. DO NOT tell the salesman you Social Security Number when you are just looking at cars. That is how they apply for credit in your name or read your credit score. BTW. Every time a salesman or dealear applies in your name your score goes down.

My wife works at the finance co. for a very large car maker. You would be appalled at the number of customers who have the dealer apply for the credit for them. The finance company loans the money at 7% and the customer signs the contract at 8%. The difference goes to the dealer as extra profit.

Answer 4

Donna,

Don't be frustrated with this dealer...put it out of your life. Car dealers are a species all by themselves. I am inundated with car adds on TV. One says that all you need is a job and bring in $300 a week and you could be approved.

There are so many dealers out there that are begging to sell cars, so find one.

I don't know what your credit is like but I always prefer to deal with my local bank than to finance with a dealer unless they can give me a good interest rate.

Personally, I prefer to buy privately it has more advantages, one of which is to be able to get much more information about the car.

What ever you choice is.....take a male with you because you are at a disadvantage by yourself. As the saying goes: "They see you coming".

Good Luck!!!

Answer 5

You wanted the $299 lease, so you filled out the credit application and the dealer submitted it to the bank and you were denied. So I don't understand why you're shocked?

Every credit pull done while shopping for financing counts as just ********ONE******** if done within 2 weeks period.