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Car buying Negotiators

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Valued Contributor

Re: Car buying Negotiators


@Chala wrote:

these are all answers based on financing, how bout leasing which is what i a leaning towards? I should have mentioned this at the top of the page, my apologies!


Who do you propose to get leasing through that does not require a hard inquiry. Most leasing is done through the manufactures captive lender.

















Your FICO credit scores are not just numbers, it’s a skill.

Message 11 of 22
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Contributor

Re: Car buying Negotiators


@Medic981 wrote:

@Chala wrote:

these are all answers based on financing, how bout leasing which is what i a leaning towards? I should have mentioned this at the top of the page, my apologies!


Who do you propose to get leasing through that does not require a hard inquiry. Most leasing is done through the manufactures captive lender.


I just don't want the dealer to do a hard pull, i am getting the financing from a credit union, of course they have to run it!

Message 12 of 22
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Valued Contributor

Re: Car buying Negotiators

As I have stated before, when you are rate shopping, FICO and other creditors understand multiple inquiries. If you do not want the dealership to pull your credit then I would be upfront with them and tell them not to pull your credit. I would read everything placed in front of you to make sure you are not authorizing them to pull your credit and I would tell them bluntly that if do pull your credit it is a deal breaker. You might even consider having an agreement written up prior to going to the dealership for the finance manager to sign that they will owe you for damages if they pull your credit. Don't know if it will work but it sounded good in my head.

 

Honestly, if you are rate shopping it is not going to affect your FICO score as multiple inquiries are treated as one inquiry for scoring.

 

 

 

















Your FICO credit scores are not just numbers, it’s a skill.

Message 13 of 22
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Contributor

Re: Car buying Negotiators


@Medic981 wrote:

As I have stated before, when you are rate shopping, FICO and other creditors understand multiple inquiries. If you do not want the dealership to pull your credit then I would be upfront with them and tell them not to pull your credit. I would read everything placed in front of you to make sure you are not authorizing them to pull your credit and I would tell them bluntly that if do pull your credit it is a deal breaker. You might even consider having an agreement written up prior to going to the dealership for the finance manager to sign that they will owe you for damages if they pull your credit. Don't know if it will work but it sounded good in my head.

 

Honestly, if you are rate shopping it is not going to affect your FICO score as multiple inquiries are treated as one inquiry for scoring.

 

 

thanks for your time and thoughts!

Message 14 of 22
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Established Contributor

Re: Car buying Negotiators


@Medic981 wrote:

The only way I know of keeping the dealership from pulling your credit is if you pay in cash at the time of purchase. That would present with another set of headaches. I would just ask the dealership what you would need to do to purchase a vehicle without incurring a hard inquiry by the dealership. In this day and age, it is a foregone conclusion you are going to get a hard pull when buying a new car. 

 

I have had my financing already in place when purchasing a car and the dealership informed me they needed to pull my credit just in case the bank financing for some reason fell through.   

 

Perhaps other MFers have more information or a better idea than I have.


This is not accurate information. First, the dealer cannot pull your credit without your consent. Just because you are walking around the showroom, or even beginning negotiations, is not Permissible Purpose (PP) to pull your credit under FCRA. Withhold that consent and if they pull, you sue the dealer for an unauthorized pull under FCRA. There is a strategic reasion to withhold PP until the out the door price is agreed upon - by giving the dealer a shapshot of your credit they can see what you can afford to borrow and they will do everything they can tio make the price of the car reach that amount. You lost a lot of bargaining leverage if the delar sees your credit before you have an out the door price locked in. If they tell you they must pull your credit before then, walk out.

 

Second, if you already have financing for the vehicle and you are happy with it, the delar still has no PP. The dealer only has PP if you agree to apply for the dealer's financing that the dealer arranges. Even then, your consent must be in writing. If you give consent, expect the dealer to run at least a half a dozen hard pulls in very rapid succession.

4/1/2017 EQ 579 TU 595 EX588
9/20/2018 EQ 810 TU 807 EX 795
6/12/19 EQ 820 TU /789 EX 793
12/13/2019 EQ 835 TU 813 EX 810 Finally made it into the 800 club on all 3 Bureaus - only took 25 years.
8/29/2020 EX 776 EQ 761 TU 768 - I paid off my mortgage and car loan and am debt free forever, and FICO threw me out of the 800 club as a reward
Message 15 of 22
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Frequent Contributor

Re: Car buying Negotiators

I always pay cash. Never had headaches to date. In one instance the dealer pulled the deal when they finally realized that it would be a cash sale. Wasted some of my time but gave me an insight into the business ethics. I said it would be cash from the jump. 

 

I walked out and bought the car from another dealer. Salesman wanted to bring someone with him and finalize the deal at my home. I declined. Deal was done at the dealership in the business office. Saleman handed me off to someone else to deliver the car. He was unhappy with the agreed upon price. The delivery was dismal. My personal mechanic introduced me to the features on the car a few days later. 

 

Cash works if you are resolute. I see no good reason to pay finance charges if not necessary. 

 

Any dealer still using the worn out Patriot Act excuse would send up a flag for me. I'd leave. The dealer has a form to fill out for any transaction over 10k. That applies to any transaction anywhere not only car sales. 

 

 

Message 16 of 22
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Established Contributor

Re: Car buying Negotiators


@Save-n-Invest wrote:

I always pay cash. Never had headaches to date. In one instance the dealer pulled the deal when they finally realized that it would be a cash sale. Wasted some of my time but gave me an insight into the business ethics. I said it would be cash from the jump. 

 

I walked out and bought the car from another dealer. Salesman wanted to bring someone with him and finalize the deal at my home. I declined. Deal was done at the dealership in the business office. Saleman handed me off to someone else to deliver the car. He was unhappy with the agreed upon price. The delivery was dismal. My personal mechanic introduced me to the features on the car a few days later. 

 

Cash works if you are resolute. I see no good reason to pay finance charges if not necessary. 

 

Any dealer still using the worn out Patriot Act excuse would send up a flag for me. I'd leave. The dealer has a form to fill out for any transaction over 10k. That applies to any transaction anywhere not only car sales. 

 

 


That $10K figure is cash currency only - it does not apply to Teller's Checks or Certified Checks.

4/1/2017 EQ 579 TU 595 EX588
9/20/2018 EQ 810 TU 807 EX 795
6/12/19 EQ 820 TU /789 EX 793
12/13/2019 EQ 835 TU 813 EX 810 Finally made it into the 800 club on all 3 Bureaus - only took 25 years.
8/29/2020 EX 776 EQ 761 TU 768 - I paid off my mortgage and car loan and am debt free forever, and FICO threw me out of the 800 club as a reward
Message 17 of 22
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Valued Contributor

Re: Car buying Negotiators


@Flyingifr wrote:

@Medic981 wrote:

The only way I know of keeping the dealership from pulling your credit is if you pay in cash at the time of purchase. That would present with another set of headaches. I would just ask the dealership what you would need to do to purchase a vehicle without incurring a hard inquiry by the dealership. In this day and age, it is a foregone conclusion you are going to get a hard pull when buying a new car. 

 

I have had my financing already in place when purchasing a car and the dealership informed me they needed to pull my credit just in case the bank financing for some reason fell through.   

 

Perhaps other MFers have more information or a better idea than I have.


This is not accurate information. First, the dealer cannot pull your credit without your consent. Just because you are walking around the showroom, or even beginning negotiations, is not Permissible Purpose (PP) to pull your credit under FCRA. Withhold that consent and if they pull, you sue the dealer for an unauthorized pull under FCRA. There is a strategic reasion to withhold PP until the out the door price is agreed upon - by giving the dealer a shapshot of your credit they can see what you can afford to borrow and they will do everything they can tio make the price of the car reach that amount. You lost a lot of bargaining leverage if the delar sees your credit before you have an out the door price locked in. If they tell you they must pull your credit before then, walk out.

 

Second, if you already have financing for the vehicle and you are happy with it, the delar still has no PP. The dealer only has PP if you agree to apply for the dealer's financing that the dealer arranges. Even then, your consent must be in writing. If you give consent, expect the dealer to run at least a half a dozen hard pulls in very rapid succession.


Wow...

 

Did you read from the top of the thread?

 

"I believe the "deal" is the out the door price of the car. One thing you do not want to get into with a car salesperson is "how much you can afford a month". Once you have determined the price of the car then you can talk about financing. The smart way to buy a car is to obtain the best financing you can find for yourself and then see if the dealership can beat it. When you are auto finance rate shopping you can get multiple inquiries yet FICO scores them as one as long as they are all pulled within 30 days. After being financed is when you will know your monthly payments. "

















Your FICO credit scores are not just numbers, it’s a skill.

Message 18 of 22
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Frequent Contributor

Re: Car buying Negotiators

Thanks. Good to know.

Message 19 of 22
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Valued Contributor

Re: Car buying Negotiators

Running your credit is the easiest way to comply with the Patriot Act. However, this is not the only way for a dealer to comply with the Patriot Act.

 

It benefits the dealership to run your credit as many people have said in this forum. When you have financing in hand do not sign the consent to let them run your credit. Just my opinion.

Message 20 of 22
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