It is legal. When applying for financing from a dealership, they basically have a variety of banks that they use pull your credit. This is to help secure a loan and get a better rate. Our dealership informed my DH and had him sign a paper saying that you give us permission to pull your credit for multiple banks for the best rate. We did end up getting a better rate than what we originally had.
Also those inquiries will be scored as 1 inquiry. When shopping for an auto or mortgage loan. They understand your trying to get the best rate. The inquiries need to be within 30 days of each other to be scored as 1. The system knows to score it as 1 because if you look at the inquiry type it says AUTO LOAN OR FINANCING. Versus if you were applying for a CC it would say CREDIT CARD.
Hope that helps clarify some.
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