topic Re: SP preapproval gone wrong in Auto Loans

SP preapproval gone wrong

disdreamin — Fri, 21 May 2021 20:19:40 GMT

A few weeks back we traveled to look at a new vehicle and I did Chrysler Capital's preapproval form before making the trip. The form was very clear that completing it wouldn't impact credit, and it didn't ask for full info. Lo and behold, today I received a denial letter from Chrysler Capital listing the dealership we visited, and my CU monitoring shows a HP on my credit with that same dealership name on it. Called the number on the denial letter and Chrysler Capital has no record of me or the reference number on the form, nothing. Called their internet preapproval line and they found me under the reference number on the letter, but say they didn't do a HP.

What gives here?! The CSR in the internet preapproval area is escalating to get the HP removed, but that denial letter was kinda a kick since we ordered a vehicle and are planning to do the 0% financing through Chrysler. Won't that be fun if it doesn't work out. Eek! Any words of advice?

Re: SP preapproval gone wrong

Nikita2008 — Fri, 21 May 2021 23:01:16 GMT

You can talk to the dealership. I don't know what your score is/was. I was a sales manager in a dealership for 5 years, and we could get most deals done, most of the time. It may not be at 0 percent though. If you are on the cusp between tiers they could potentially get a tier bump. Check your local credit unions for a low interest loan as well'

Re: SP preapproval gone wrong

Loquat — Sat, 22 May 2021 02:50:59 GMT

Hope is not lost. I know F&I get a bad rap here...and a good amount of them rightfully so. A good F&I manager should be able to help you complete your purchase as long as you have decent income and your credit isn't terribly bad...and even still that doesn't disqualify you for approval.

Santander (Chrysler's Captive) isn't all that hard to get an approval from. Even a denial from them are often overturned with the right phone call from the F&I guy.

Re: SP preapproval gone wrong

ridgebackpilot — Sat, 22 May 2021 06:00:51 GMT

It's very typical for an auto dealership to pull your credit reports first, before they refer you to their captive lender and/or others. The dealership is trying to judge whether you're sufficiently creditworthy to refer for financing.

You'll get another HP when the lender pulls your credit report. This seems standard practice in the industry. And even though you might get a half-dozen HPs for one auto purchase, they only count as one since the multiple pulls are "de-duplicated" by the system, which recognizes and allows for the process of rate-shopping.

Do you have a previous relationship with Chrysler Capital? If so, they may give you a tier bump and allow you to qualify for a better rate based on a previous auto loan with them. Good luck!

Re: SP preapproval gone wrong

disdreamin — Sat, 22 May 2021 13:37:32 GMT

That was the weird thing, I only did the SP preapproval and yet my credit got pulled and I got a denial letter. I received my TU FICO Auto Score 9 they pulled and it was an 878, and I don't think income should be an issue. Super confused by how anything was even pulled, but I guess once the vehicle comes in I'll just app with the dealer and hope the 0% works out. If not, I checked my CU and can get in the 2's which is liveable. I just wanted that 0% haha.

Re: SP preapproval gone wrong

barca — Sat, 22 May 2021 15:58:32 GMT

@disdreamin wrote:
That was the weird thing, I only did the SP preapproval and yet my credit got pulled and I got a denial letter. I received my TU FICO Auto Score 9 they pulled and it was an 878, and I don't think income should be an issue. Super confused by how anything was even pulled, but I guess once the vehicle comes in I'll just app with the dealer and hope the 0% works out. If not, I checked my CU and can get in the 2's which is liveable. I just wanted that 0% haha.

@disdreamin

I remember some few months ago, I was playing around with Chrsler Financing and did the SP preapproval.

I was approved for 72K or 75K

After a week or so, the designated chrysler dealership (I did not visit any dearler) sent me a letter that my applicatino was denied.

of course, that is impossible, becuase all my credit auto score is close to 900 and my income is over 200K

I did not see any HP on my credit report.

Although in my case my credit report is always frozen.

so normally, I would have unfreeze for the SP from Chrysler, and would have frozen it back almost immediately.

So there are two possibilities here in my case:

1. After the SP from Chrysler, I did not contact the dealer, and they just denied me because of "lack of follow up" (my first suspicion)

2. The dealer try to do HP on my report , since it was frozen, they denied my application.

you said you visited the dealer, did you complete any application form while at the dearlership.

It could also be because you did not continue the application and the system(computer not human) just denied you.

in any case, it is still weird you got HP.

Re: SP preapproval gone wrong

disdreamin — Sat, 22 May 2021 16:48:51 GMT

@barca wrote:
you said you visited the dealer, did you complete any application form while at the dearlership.
It could also be because you did not continue the application and the system(computer not human) just denied you.

in any case, it is still weird you got HP.

We did visit the dealership, but when we walked in and they asked for a license I told them we could worry about that once we came to an agreement on the numbers. Their response was that MSRP was the number, to which I told them we would look at the vehicle but not test drive since we absolutely weren't buying at MSRP, and that I didn't want to put unnecessary miles on their vehicle since we'd already driven the same trim level (we really went to see the color/exterior and make sure it was what we wanted). Other than thanking the salesperson for his time, that was our entire interaction. No application, no paperwork at all of any sort, since we weren't purchasing.

I'm still perplexed by the pull, but I don't think it should impact significantly and hopefully the 0% will work when the vehicle comes in.

Re: SP preapproval gone wrong

Anonymous — Sun, 23 May 2021 23:33:59 GMT

Once you do one of those SP apps with CC, they forward your info to the dealer if it looks good. Then they in turn actually run you to get you preapproved. Its a dealer racket. Dont ever fill out their credit forms on their site or give them permission EVER to run your credit. You will end up with 20 inqs when its all said and done. They will shotgun you to every lender they have, even if you are bringing your own check from your local CU. Just tell them you are paying cash and never discuss payment with them. Then get your financing from a CU.

Re: SP preapproval gone wrong

disdreamin — Mon, 24 May 2021 00:01:48 GMT

@Anonymous wrote:
Once you do one of those SP apps with CC, they forward your info to the dealer if it looks good. Then they in turn actually run you to get you preapproved. Its a dealer racket. Dont ever fill out their credit forms on their site or give them permission EVER to run your credit. You will end up with 20 inqs when its all said and done. They will shotgun you to every lender they have, even if you are bringing your own check from your local CU. Just tell them you are paying cash and never discuss payment with them. Then get your financing from a CU.

I'm unclear on how they can do that without your SSN and your permission. The CC pre-approval site specifically mentioned no HP (not those words, but that it would not impact credit). We will be going through CC for financing with 0% on the table - we can't get the full rebates since they've since reduced those, so we will stick with the free financing. Hopefully we can get them to do only the one pull with CC at that point.

Re: SP preapproval gone wrong

4sallypat — Tue, 25 May 2021 19:07:00 GMT

That is very strange, but possible.

When we were looking for a used Honda Pilot, the internet sales rep said they can do a SP pre=approval.

We saw our correct scores and we were approved with just a SP since we had a current lease with Honda.

Since you do give out your SSN, it's possible an unscrupulous dealer can use it to do a HP.

Re: SP preapproval gone wrong

disdreamin — Tue, 25 May 2021 22:06:01 GMT

@4sallypat wrote:
That is very strange, but possible.

When we were looking for a used Honda Pilot, the internet sales rep said they can do a SP pre=approval.

We saw our correct scores and we were approved with just a SP since we had a current lease with Honda.

Since you do give out your SSN, it's possible an unscrupulous dealer can use it to do a HP.

The form I filled out only asked for the last 4 for the SSN, and specified it would not impact credit. I guess I should just be grateful they didn't blast my info to every lender within 100 miles, but I'm going to pursue getting it dropped since I never authorized the hard pull I received. Good thing we didn't end up doing business with that dealership, I guess.

Frankly I'm still frustrated with the salesperson as we were driving a couple hundred miles to look at the vehicle, and I texted that we could talk numbers while we were there instead of doing it beforehand (frankly I knew it was unlikely we'd go home with the vehicle but wanted to give it a chance). When we got there, he informed me they wouldn't come off MSRP - like you could have told me that by text. I would still have come to look, but with no illusions about coming to an agreement, and I sure wouldn't have gone to the trouble of an insurance quote and all. Guess I dodged a bullet all around with that