I have financing lined up, but the dealer wants to run credit app?

[Anonymous]

This is rather irritating. I applied for a loan through my local CU, to purchase a pre owned vehicle. Long story short the deal fell through and I am still shopping. I found another car tonight that I want to purchase. After we agreed on the price, I told the salesman I already had a loan approved through my CU. He said in order to buy the car I need to fill out a credit app. He said the owners of the dealership require this. I don't want any unnecessary inquires on my file. He stated that it would just show up as the name of the dealership. What is going to make my blood boil, is if I give them the info and they shop a bunch of loans. Im buying an older vehicle, and I doubt they can beat the rate I have. I feel confident enough that I don't even want them to try. Is this legit? Is there anyway I can authorize just one pull, or will they have free reign to submit my file to a bunch of banks?

[pipeguy]

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@Anonymous wrote:

This is rather irritating. I applied for a loan through my local CU, to purchase a pre owned vehicle. Long story short the deal fell through and I am still shopping. I found another car tonight that I want to purchase. After we agreed on the price, I told the salesman I already had a loan approved through my CU. He said in order to buy the car I need to fill out a credit app. He said the owners of the dealership require this. I don't want any unnecessary inquires on my file. He stated that it would just show up as the name of the dealership. What is going to make my blood boil, is if I give them the info and they shop a bunch of loans. Im buying an older vehicle, and I doubt they can beat the rate I have. I feel confident enough that I don't even want them to try. Is this legit? Is there anyway I can authorize just one pull, or will they have free reign to submit my file to a bunch of banks?

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SOP for a dealer that wants to shop your loan, expect at least 3 HP's which will count as 1, but still. If I were you I'd say "well tell your owner that I am a cash buyer (check in hand from your CU) and if he's willing to lose a sale because I don't want my credit run for a cash sale, then so be it I'm walking". There is always another car out there if he actually lets you walk.

[pizzadude]

I have also heard some dealers claim that they have to run your credit on cash sales to verify your identity as required via the patriot act. Personally I don't think it is necessary, there are many ways to prove who you are without running credit.

+1 to pipeguy's advice ~ be prepared to walk out. If they happen to change their mind be sure to write in "dealer agrees not to run credit" on the sales contract.

[FrugalRican]

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@pipeguy wrote:

 SOP for a dealer that wants to shop your loan, expect at least 3 HP's which will count as 1, but still. If I were you I'd say "well tell your owner that I am a cash buyer (check in hand from your CU) and if he's willing to lose a sale because I don't want my credit run for a cash sale, then so be it I'm walking". There is always another car out there if he actually lets you walk.

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What he said +1011111

If you have something lined up with a CU and you really doubt that they are going to beat the CU's buyer, you aren't a finance customer to them, you are a cash buyer.

They need to treat you as such or you just walk away.

I'll bet they'll start backpedaling.

[drkaje]

I'd walk.

There's no legit reason (I can think of) for them to pull a credit report when it's already been done by a CU and OP is essentially paying cash.

[StartingOver10]

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@pizzadude wrote:

I have also heard some dealers claim that they have to run your credit on cash sales to verify your identity as required via the patriot act. Personally I don't think it is necessary, there are many ways to prove who you are without running credit.

+1 to pipeguy's advice ~ be prepared to walk out. If they happen to change their mind be sure to write in "dealer agrees not to run credit" on the sales contract.

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+1 If you fill out a credit app, they will run your credit.  You are taking away a large part of their revenue by coming in with outside financing. Don't let them run your credit and no matter what they tell you, don't give them your permission by filling out the app. If you walk, they will either come after you to do the deal your way or you find another car.

I've heard and seen reference to dealers pulling credit using the Patriot Act excuse. There was a lively discussion on another board about a cash (no loan) buyer that had his credit run without his permission. They said they had to do it to make sure his check would clear. Crazy, right????

[FrugalRican]

I think something is missing from the OP's post.

It makes a huge difference in whether when asked how the car was gonna be bought, if he said CU financing or cash.

If OP said that he was already approved from a CU, then the salesman probably just wanted to compete for the loan.

But if the OP said that he had a check cut already for the car and then the salesman says that he has to run the credit, then I'd think twice.

And definitely write down on the copy of your ID that you don't authorize a credit check to be run.

Shady things can happen at car dealerships.

[Watchmann]

The seller has to identify exactly who you are under the heavy hand of the Federal Government.  Part of this is for terrorism purposes and part is to prevent money laundering.  The days are long gone when you could walk in with a wad of cash, or a check, and buy a car with no questions asked.  Your credit will be run if you are going to buy the car to properly identify you.  You can resist, but you won't get the car if the seller is staying legal......just get over it.  Your right to privacy is not absolute any longer.

[Watchmann]

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@drkaje wrote:

I'd walk.

There's no legit reason (I can think of) for them to pull a credit report when it's already been done by a CU and OP is essentially paying cash.

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Yes there is.....it's called the Patriot Act..

[drkaje]

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@Watchmann wrote:

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@drkaje wrote:

I'd walk.

There's no legit reason (I can think of) for them to pull a credit report when it's already been done by a CU and OP is essentially paying cash.

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Yes there is.....it's called the Patriot Act..

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I speciflcally wrote "legit reason".