Car dealership credit inquiries

[Anonymous]

Can someone explain to me why a car dealership would run my credit; after I went and got pre-approved at my local credit union which the loan is through? I purchased a new car Friday and just received a inquiry alert today from that dealership. The last new car I bought at a different dealship they did the same thing.

Thanks!

[John060675]

I could be wrong on this, but I think it has something to do with a federal regulation.  I think I read this somewhere on this forum.

Could be wrong, but I think this is the case.

Maybe you can call them and ask them to recode it to a soft pull.

[gamecockmd]

It shouldn't affect your score much. FICO counts all credit pulls within a 2 week (if memory serves) period as a single pull. That allows you to shop around without sabotaging your score.

[Anonymous]

Did you fill out a credit application?

[Takunda1]

Someone else on this forum had the same thing happen to them. I guess they do it to see if they can offer you a better rate or something. Either way, I'm going to buy a new car mid next year and have already planned to freeze my accounts, so when the dealership trieds to run my credit they won't be able to.  Thats really the only way to protect yourself from unwanted inquiries these days.

[haulingthescoreup]

There seem to be two theories: car dealerships are now required to verify identity of buyers, per the Patriot Act. This would included drivers' licenses, passports, etc. Lazy dealerships use credit inquiries, which in fact, do NOT establish identities, and are an unauthorized access of credit.

The other theory is that dealerships use the above as an excuse in order to go fishing for potential credit customers. Neither are a proper use of credit inquiries.

Smart idea to freeze your accounts and bring a check.

[ozgirl]

I had the exact experience! I started a thread regarding this --the dealership tried to hide behind the patriot act

[Anonymous]

I can understand if it is for Federal verification or the Patriot Act; something useful. But I think I would be a little pissed if they just ran to get a $50 finders fee from some 3rd rate auto credit lender AFTER I have already driven off the lot.