topic I have financing lined up, but the dealer wants to run credit app? in Auto Loans

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

Anonymous — Fri, 17 Feb 2012 06:37:23 GMT

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?

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

pipeguy — Fri, 17 Feb 2012 06:43:12 GMT

@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?

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.

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

pizzadude — Fri, 17 Feb 2012 12:16:44 GMT

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.

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

Anonymous — Fri, 17 Feb 2012 13:15:12 GMT

@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.

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.

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

Anonymous — Fri, 17 Feb 2012 14:02:16 GMT

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.

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

StartingOver10 — Fri, 17 Feb 2012 14:29:03 GMT

@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.

+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????

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

Anonymous — Fri, 17 Feb 2012 14:37:33 GMT

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.

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

Watchmann — Fri, 17 Feb 2012 20:45:18 GMT

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.

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

Watchmann — Fri, 17 Feb 2012 20:40:56 GMT

@Anonymous 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.

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

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

Anonymous — Fri, 17 Feb 2012 20:41:41 GMT

@Watchmann wrote:
@Anonymous 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.

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

I speciflcally wrote "legit reason".

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

Watchmann — Fri, 17 Feb 2012 20:48:40 GMT

@Anonymous wrote:
@Watchmann wrote:
@Anonymous 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.

Yes there is.....it's called the Patriot Act..
I speciflcally wrote "legit reason".

Unfortunately you don't get to decide what is a legitimate reason. That is decided for us more and more by people who are wiser than you and me. Or so they say.

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

Anonymous — Fri, 17 Feb 2012 21:22:49 GMT

@Watchmann wrote:
@Anonymous wrote:
@Watchmann wrote:
@Anonymous 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.

Yes there is.....it's called the Patriot Act..
I specifically wrote "legit reason".

Unfortunately you don't get to decide what is a legitimate reason. That is decided for us more and more by people who are wiser than you and me. Or so they say.

I'm saying OP (and others) should decide with their wallets. If the dealer won't accept Govt ID on a purchase, I'd move on. We all know what multiple inquiries will do to a credit report, LOL! I've got nothing to hid but would prefer to at least do something wrong before being treated like a criminal.

I'm not inflexible, though. I'd allow a soft pull if they had it in writing and signed by someone accepting financial liability should a hard show up.

It might be old age setting in but I can't recall ever being given an opportunity to vote on thePatriot Act.

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

Watchmann — Fri, 17 Feb 2012 22:07:36 GMT

@Anonymous wrote:

It might be old age setting in but I can't recall ever being given an opportunity to vote on thePatriot Act.

Of course you voted on it, when you voted for your Senators and House Representative you authorized them to vote on your behalf. Since 82% of the House and 98% of the Senate voted for it it is most likely that you yourself approved of it (if you voted in the first place). That's the way it works.

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

Anonymous — Fri, 17 Feb 2012 22:05:26 GMT

@Watchmann wrote:
@Anonymous wrote:

It might be old age setting in but I can't recall ever being given an opportunity to vote on thePatriot Act.
Of course you voted on it, when you voted for your Senator's and House Representative you authorized them to vote on your behalf. That's the way it works.

Then I need to vote for some new representatives, LOL!

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

Anonymous — Fri, 17 Feb 2012 23:49:06 GMT

Well it's a no go anyways... I left last night basically on the premise that I would not authorize a credit check. the whole Idea of it seemed shady to me. The first dealer never mentioned anything about a credit pull. I would be more than happy to show 2 forms of photo ID, but I do not trust anything a dealership tells me. I was thinking they where going to submit my file to their lenders regardless of what I told them.

They showed me a carcheck report and kept calling it a carfax. I know what both of them are, but I decided to pull a carfax to see what would appear, and sure enough there was an accident with frame damage so I'm walking. I emailed the sales manager I was working with and told him about my findings. (as if he didn't know) Funny thing is, I have yet to hear back from him.

Also to clarify, I have an approval. I don't actually have a blank check. What will happen is once I get a deal, the dealership will fax a PO to the CU and they will fund the loan.

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

Anonymous — Sat, 18 Feb 2012 00:26:27 GMT

Here's some info on this subject that may be helpful

http://www.ftc.gov/os/statutes/fcra/coffey.shtm

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

Anonymous — Sat, 18 Feb 2012 00:39:00 GMT

@Anonymous wrote:
Here's some info on this subject that may be helpful

http://www.ftc.gov/os/statutes/fcra/coffey.shtm

Awesome post!

That being said, the patriot act may have some odd provision that trumps every individual right and all previous laws.

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

Anonymous — Sat, 18 Feb 2012 01:35:41 GMT

The Patriot Act requires a lender to verify identify, not credit worthiness. Identity verification is available from many very large organizations that sell data and the checks are known as CIP checks in the industry (LexisNexis is one of the bigger players). There is no legitimate reason for an HP on a cash transaction, other verificaton requirements may exist (OFAC & CIP fro example) owing to other regulations (Patriot, AML, BSA etc).

@Anonymous wrote:
@Anonymous wrote:
Here's some info on this subject that may be helpful

http://www.ftc.gov/os/statutes/fcra/coffey.shtm
Awesome post!

That being said, the patriot act may have some odd provision that trumps every individual right and all previous laws.

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

Anonymous — Sat, 18 Feb 2012 03:57:12 GMT

@Anonymous wrote:
The Patriot Act requires a lender to verify identify, not credit worthiness. Identity verification is available from many very large organizations that sell data and the checks are known as CIP checks in the industry (LexisNexis is one of the bigger players). There is no legitimate reason for an HP on a cash transaction, other verificaton requirements may exist (OFAC & CIP fro example) owing to other regulations (Patriot, AML, BSA etc).
@Anonymous wrote:
@Anonymous wrote:
Here's some info on this subject that may be helpful

http://www.ftc.gov/os/statutes/fcra/coffey.shtm
Awesome post!

That being said, the patriot act may have some odd provision that trumps every individual right and all previous laws.

Thanks!!

We had no intention to thread-jack but the information has really been educational.

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

pipeguy — Sat, 18 Feb 2012 05:00:29 GMT

@Watchmann wrote:
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.

Please provide a link to the section or act of law you are talking about. I can't find anything in the Patriot Act that requires a car dealer to run a credit report as "verification of Identtification".

http://www.fincen.gov/statutes_regs/patriot/index.html

Section 326: Verification of Identification

http://www.gfsbusiness.com/docs/USA_PATRIOT_Act_Section_326_Final_Rule.pdf