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Recent experience at a VW dealer in Socal

Established Member

Recent experience at a VW dealer in Socal

From the Fico simulator, I was pretty sure that I would take a hit on my Fico score getting an auto loan but I had to get a vehicle asap as my old Explorer was pretty close to becoming undrivable.

 

I knew that I needed to keep the hard pulls down so decided to go with one of my credit unions, Alliant. They did a hard pull and I was preapproved. They also used that pull, with my permission, for my credit card and used it to raise my credit line to 20k.

 

I decided that I liked the VW's and wanted to go with a certified used one. My local dealer, which I will not name, had a very nicely priced 2013 Passat which I decided to buy.,

 

So began my journey downward.

 

The salesman wrote up the deal and to'd me to someone from the office who told me that they had to run a soft pull for id verification. In fact, he and the salesman and someone from F& I all told me the same thing. Said it was due to new federal regulations. Anyway I said sure as long as it was a soft pull, it ended up that VW Credit cut Alliant's rate by a quarter point so I walked out with the car.

 

Of course, you know what had happened, there are now 3 hard pulls on my credit, Alliant 1, VW Credit 1 and 1 other from Credco or some wierd name- all the day of my visit to the dealer.

 

I have also heard from others who recently bought cars at dealers, that the same thing happened to them.

 

There isn't much I can do about it, after all, they beat my rate. Where's the damage, a judge might ask?

 

But it is pretty irritating.

 

My lesson I took from this is if the delaer rep's lips are moving, he's lying.

 

By the way, before this I was 800+ across the board, now 797, 795 and 800.

11 REPLIES
Valued Contributor

Re: Recent experience at a VW dealer in Socal

They likely soft pulled you to get the rate, then hard pulled upon your approval of the rate.

 

Auto loan inquiries within the same short time period are scored as ONE inquiry, so don't stress over it.  Inquiries don't matter if you have a clean profile and they count for less and less after 6 months of aging.

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Message 2 of 12
Contributor

Re: Recent experience at a VW dealer in Socal

The hard pull from "credco" is more than likely the actual dealership that pulled your credit. Alot of time's dealer's are described as "credco" on your CB when they pull your credit. As mentioned above all three HP's should count as just one single inquiry for scoring purposes however they will all three be on your CB.

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Message 3 of 12
Established Member

Re: Recent experience at a VW dealer in Socal

Really appreciate the info! No more inquiries! Thanks to both of you!

Message 4 of 12
Valued Contributor

Re: Recent experience at a VW dealer in Socal


SEMO wrote:

The hard pull from "credco" is more than likely the actual dealership that pulled your credit. Alot of time's dealer's are described as "credco" on your CB when they pull your credit. As mentioned above all three HP's should count as just one single inquiry for scoring purposes however they will all three be on your CB.


Credco showed up on my CR's in tampa while I was shopping a few years back... Maybe it's who the dealer's F&I guys are going thru at some dealers?

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In 3/2016 I had a $1800 fully secured CapOne QS. And that was it.. Current CL $247,000 (plus my auto and RV loans)
Message 5 of 12
Moderator

Re: Recent experience at a VW dealer in Socal

Credco supplies credit reports/scores.  Accordding to their website they are the #1 provider of credit reports and scores.

 

https://www.credcoservices.com/

Message 6 of 12
Valued Member

Re: Recent experience at a VW dealer in Socal

 

This always happens when customers walk in with preapprovals. The thing is that dealerships want to provide financing so they can get paid on the back of the loan. If you bring your own finance company then there is no money to be made. So usually for ppl like you with immaculate scores, the find a bank that will beat your preapproved rate plus some so that they can still make money on the back end while still offering a better rate than what you were preapproved for. 

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Message 7 of 12
Community Leader
Valued Contributor

Re: Recent experience at a VW dealer in Socal


nykos5000 wrote:

 

This always happens when customers walk in with preapprovals. The thing is that dealerships want to provide financing so they can get paid on the back of the loan. If you bring your own finance company then there is no money to be made. So usually for ppl like you with immaculate scores, the find a bank that will beat your preapproved rate plus some so that they can still make money on the back end while still offering a better rate than what you were preapproved for. 


Yeah, I had a pretty similar experience as the OP - I bought a 2016 Mazda from a Tucson Honda dealer 9/1. I walked in with a pre-approved from a small local CU that had financed the car I was trading in. Salesman insisted the dealer requires a credit pull, so I relented. They beat my pre-approval by 1/4 % with a larger Tuswcon CU where I also had accounts, so I agreed. I kept seeing an additional inquiry (besides the dealer) only on EX. With StartingOver's post about Credco I looked mine up -the HP was coded as "CUDL":

www.cudirect.com

"The Nation’s Largest Credit Union Auto Lending Network"

 


Fico 08: 720/721/719 TU/EX/EQ
Message 8 of 12
Regular Contributor

Re: Recent experience at a VW dealer in Socal

This would really irritate me.  Frankly, I'd walk if they told me they had to pull credit even though I already had financing.  

 

Last time I purchased a car, went in without financing and got the typical we'll only pull it once lie.  This, of course, led to 3-4 pulls.  Unfortunately, didn't realize this until I already had the car.  I understand that they may only score as one, but it's the principle.  Also, inquiries do not always report correctly, and who wants the hassle of trying to fix that?

 

That will be the last time I go in without financing.  Never trust what they aren't willing to put in writing.  To be completely honest, I'd even treat that with a healthy dose of skepticism.  

Message 9 of 12
Community Leader
Valued Contributor

Re: Recent experience at a VW dealer in Socal


MIDWESTCOAST wrote:

This would really irritate me.  Frankly, I'd walk if they told me they had to pull credit even though I already had financing.  

 

Last time I purchased a car, went in without financing and got the typical we'll only pull it once lie.  This, of course, led to 3-4 pulls.  Unfortunately, didn't realize this until I already had the car.  I understand that they may only score as one, but it's the principle.  Also, inquiries do not always report correctly, and who wants the hassle of trying to fix that?

 

That will be the last time I go in without financing.  Never trust what they aren't willing to put in writing.  To be completely honest, I'd even treat that with a healthy dose of skepticism.  


+1000  Ain't that the truth.  I agree wholeheartedly!

Message 10 of 12