cancel
Showing results for 
Search instead for 
Did you mean: 

Does a dealer have to run your credit when you bring your own financing?

New Member

Does a dealer have to run your credit when you bring your own financing?

I was approved for financing from Up2Drive online.


However, one of the dealers told me it was the rule that dealerships have to run your credit even when you have your own financing or cash.  Is that true?  I don't want yet another hit on my report.


Thanks!

7 REPLIES
Valued Member

Re: Does a dealer have to run your credit when you bring your own financing?

No they don't need to run your credit if you have your own financing or are paying cash. If they require it, run as fast as you can from that place as they are weasels!


Starting Score: EQ 530 TU 550
Current Score: EQ 693 TU 697
Goal Score: 720+


Take the FICO Fitness Challenge
New Member

Re: Does a dealer have to run your credit when you bring your own financing?

Thank you for the kind reply.

They told me since they are essentially giving me a "Loan" until the finance company's check clears they'd have to run the credit.  In a way I understand that, but at the same time, running the credit doesn't help with that either.  Maybe require 2 forms of ID or something, but credit check doesn't seem necessary. 

I have now asked 5 dealerships and they all say they do this.  They say they want to see the "credit hit," from the financial instituation on your report so they can trust you have a real contract open with that financing company. 

Moderator

Re: Does a dealer have to run your credit when you bring your own financing?

So they stopped using the "Patriot Act" excuse and now use the excuse that they have to see the other credit hits?  Wow...a new low even for car dealerships.

They do not need to run your credit. If you have a check and or letter from the lender for approval then that should work. Call up the lender you are using and ask what they can supply to show you are approved with them....

 

The statement that they are giving you a "loan" until the check clears is total hogwash. If the lenders check doesn't clear they have other recourse. It is just a line to get hold of your credit file.

 

I agree with the previous posts - run from the dealership that won't cooperate. Even if it is 5 dealerships...or 10 dealerships. Stand up for yourself and the financing you have already.

Super Contributor

Re: Does a dealer have to run your credit when you bring your own financing?

Here's an older post on this same topic ~ there are several others as well:

http://ficoforums.myfico.com/t5/Auto-Loans/Dealer-pulled-CR-for-cash-sale/m-p/594330
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Highlighted
Regular Contributor

Re: Does a dealer have to run your credit when you bring your own financing?

They don't need to run your credit if you already have financing.  And them pushing you to have an intermittent loan until your bank/CU's loan clears is hogwash.

 

When the Mrs and I purchased her SUV (Mercedes), we gave the finance department the lender documents to fill out to receive the loan, and a personal check as collateral in-case the loan was not legitimate.   Needless to say the check was never cashed.

Established Contributor

Re: Does a dealer have to run your credit when you bring your own financing?

Sorry but that Patriot Act business is bullsh*t.  What is required is related to OFAC compliance.  They need to verify your identity (will ask you VERID questions) and then they will need  to confirm that you are not on the "blocked persons" list.  They DO NOT need to run your credit to do this.  There are a number of tools available to dealerships to get this done. If they say otherwise, they are lying.

 

See my thread:

 

http://ficoforums.myfico.com/t5/Auto-Loans/WTH-Patriot-act-OFAC-requires-me-to-fill-out-a-credit/td-...

 

 



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Established Contributor

Re: Does a dealer have to run your credit when you bring your own financing?


bc1012 wrote:

Thank you for the kind reply.

They told me since they are essentially giving me a "Loan" until the finance company's check clears they'd have to run the credit.  In a way I understand that, but at the same time, running the credit doesn't help with that either.  Maybe require 2 forms of ID or something, but credit check doesn't seem necessary. 

I have now asked 5 dealerships and they all say they do this.  They say they want to see the "credit hit," from the financial instituation on your report so they can trust you have a real contract open with that financing company. 


Don't take their loan, they don't have to do this. The finance manager gets comission for setting up the loan, even if it gets paid off right away. This is the real reason why they want to run your credit. All you have to do is call them out. Let them know you know its bull and that you'll just walk away if they force the credit check.