Chrysler preapproval then denial letter

[gmilesfenwick]

On 2/23/2022, I submitted a preapproval request with Chrysler to finance a new Jeep. I listed a dealer who had inventory as my preferred dealership. They did a softpull.

Chrysler preapproved me for $222,353.00
No, that is not a typo. Almost a quarter of a million dollars... I thought, what in the heck are they trying to sell me!?!?!?

On 2/27/2022, I visited the dealership I listed as preferred... and eventually walked out. We never got to the point where they would do a hard pull. They wanted MSRP plus 10k for thr vehicle I was interested in purchasing. I went to another local dealership and we agreed on MSRP for a Jeep that they would order. I put a $1000.00 deposit and they did run a credit check (Hard pull) The dealer said credit and DTI was not a problem.

On 4/9/2022, I received a letter from Chrysler Capital with the same reference number as the soft pull on 2/23 saying that they were denying my application because of 1. Serious delinquencies 2. High credit usage 3. Too many credit inquiries.

Now here's what annoys me.
1. The credit score on their letter was 767.
2. I have NO delinquencies on my credit report.
3. My revolving debt is 10% of available credit
4. There was only one inquiry on my credit report when they did the soft pull. (two now because of Jeep order)

At the time of the soft pull I had 3 non revolving debts on my credit file:
1. Mortgage - 10 years old, never late, never deferred
2. Student loan - 17 years old, never late, never deferred
3. BMW financial - Balance of $20k, never late, now paid in full

I'm not worried about financing this vehicle when it arrives, I have a great relationship with 3 credit unions who will compete for my business.

I'm curious if anyone has seen anything like this before? I plan to call them Monday, if for no other reason than to torture them with questions and demand an explanation. I'm wondering if after 30 days, this is what Chrysler does to close the pre approval. Seems shady if that is the case.

This really upsets me. I work hard to pay my bills on-time and make sacrifices to payoff debts early.

Thoughts and experiences are welcomed!
Cheers!!!

[pizzadude]

Your report is totally clean now?  You posted here about a collection, and also mentioned deliquencies in another post so are all negatives gone now? 

I'm guessing that the online preapproval with them where they approved you for $222K was a glitch on their end, unless your income would support a payment in that range?

I've also edited your post above for language, please keep it G rated in the future.

[lns1976]

@gmilesfenwick It's very possible they issued the denial letter because of a glitch pre-approving you for $222k.  

It may have nothing to do with whether they will approve you, but they may have wanted to rescind a $222k approval.

You won't know unless you call them though.  I would just call and be polite and explain the situation and see what they say.

[gmilesfenwick]

Yes, report is all clean. Absolutely pristine!!!

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@pizzadude wrote:

Your report is totally clean now?  You posted here about a collection, and also mentioned deliquencies in another post so are all negatives gone now? 

I'm guessing that the online preapproval with them where they approved you for $222K was a glitch on their end, unless your income would support a payment in that range?

I've also edited your post above for language, please keep it G rated in the future.

---

After some help from this forum.

And I edited the original post so the "Spirit" remained intact, but now suitable for "All Audiences"

😀

[gmilesfenwick]

Just on a whim...

I did the "Chrysler pre-approval" again.

And again it approved me for $222,353.00

I'll acknowledge that I have a very solid/documented income, in a very stable industry but good grief!!! I cannot image spending that amount of money on a car! I'm dizzy just thinking about what the car payment would be.

I'm starting to think that the original dealer has something to do with the denial letter.

[lns1976]

@gmilesfenwick Maybe they think you need 3 new Ram 3500 Trucks? lol

[disdreamin]

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@gmilesfenwick wrote:

Just on a whim...

I did the "Chrysler pre-approval" again.

And again it approved me for $222,353.00

I'll acknowledge that I have a very solid/documented income, in a very stable industry but good grief!!! I cannot image spending that amount of money on a car! I'm dizzy just thinking about what the car payment would be.

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Here are a couple data points for you - I have done the preapproval thing twice with Chrysler Capital, once when actually looking to purchase and once just messing around. When messing around, I put in my income (not household) and got around $200k so I'd say their preapproval is overly generous (understatement). Here is the important part - both times, I receive a denial letter in the mail some weeks later, showing some pretty whacked out reasons for the denial. I tried contacting Chrysler Capital both times, and they couldn't tell me anything, nothing attached to the record number on the letter.

After doing some reading, my guess is that if you do the SF preapp and don't purchase anything (or have a deal structured with a dealership) you get that letter. If a deal has been structured, obviously not. I was super miffed when I got the first letter (like how DARE) but the second one I shrugged off after one attempted phone call to follow up. Since it doesn't correspond to a hard pull/app on my reports, it's not an issue.

[disdreamin]

One other thing - I'm curious how well you did with price? There are a couple DCJR dealerships in the US that are doing some stellar deals on stuff, hopefully you got a nice discount off MSRP. Oh, and hopefully you didn't use all of that $220k you were preapproved for

[gmilesfenwick]

Thanks for the reply. I'm thinking the preapproval aged out also. I'll find out more soon.

Regarding the vehicle... I agreed to pay MSRP. This vehicle is a *want* not a need. it is highly optioned from the factory with a rare color combination and two very hard to get options. In the PRC (People's Republic of California) demand is overwhelming, and most dealers want between 10k and 20k over sticker. My 4-5 month wait time for build is a small price to pay. And I already had a good relationship with the new dealer from a previous car I owned. Happy to support a local business.

Albeit, still annoyed at the letter.

[disdreamin]

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@gmilesfenwick wrote:

Thanks for the reply. I'm thinking the preapproval aged out also. I'll find out more soon.

Regarding the vehicle... I agreed to pay MSRP. This vehicle is a *want* not a need. it is highly optioned from the factory with a rare color combination and two very hard to get options. In the PRC (People's Republic of California) demand is overwhelming, and most dealers want between 10k and 20k over sticker. My 4-5 month wait time for build is a small price to pay. And I already had a good relationship with the new dealer from a previous car I owned. Happy to support a local business.

Albeit, still annoyed at the letter.

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There have been lots of hard to get options in recent months, even something as simple as blind spot monitoring has been troublesome due to chip shortages. I have even read about Stellantis changing up option packages without advance notice (for example, things as simple as "option package 2" going to "option package II" with modified components list) and I've read tales of buyers receiving special orders that were missing certain components. Hopefully your build goes smoothly - do you know your current status code, and did you get your VIN yet?

As far as supporting local dealers, I'd have done so if pricing was competitive. Unfortunately, local dealerships were solidly at MSRP as their best offer for my special order at the time I purchased, and I was able to order the same vehicle for ~15% off MSRP. For the ~$7k savings after transportation costs, I had to forego a local purchase in favor of saving a chunk of change.