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Dealership shown on Credit Report

WalkerD
New Visitor

Dealership shown on Credit Report

Hello,

I recently purchased (co-signed) a new car and asked the dealer (Hyundai Dealership) to only use Chase Bank and Hyundai Finance. I pulled my credit report and I now have (3) inquiries from Chase, Hyduani, and the dealership. Can someone advise as to why the dealership name is reporting as a hard inquiry on my credit report?  BTW the dealer is not a lender. 

Message 1 of 16
15 REPLIES 15
GlennvilleGA
Regular Contributor

Re: Dealership shown on Credit Report

The dealership has an obligation to verify your identity and see if you have a fraud alert... also they need to know what's on your credit report incase they need or want to call an underwriter at Hyundai Finance or Chase Bank to negotiate better terms. I feel like they honored what you asked them to do... they only sent the application to HMF and Chase. 

Message 2 of 16
sccredit
Valued Contributor

Re: Dealership shown on Credit Report

@GlennvilleGA is right. The dealer honored what you asked. I have never not had a dealer pull my credit when financed through them. The way financing works with a dealer is the dealer itself is extending you credit on the terms listed on the contract. They subsequently assign the contract to the finance company. 

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Message 3 of 16
WalkerD
New Visitor

Re: Dealership shown on Credit Report

Well explained, Thanks Much! 

Message 4 of 16
disdreamin
Established Contributor

Re: Dealership shown on Credit Report


@sccredit wrote:

@GlennvilleGA is right. The dealer honored what you asked. I have never not had a dealer pull my credit when financed through them. The way financing works with a dealer is the dealer itself is extending you credit on the terms listed on the contract. They subsequently assign the contract to the finance company. 


That's odd, I've never had a dealer pull my credit when I financed through them. The lender does so, obviously, but not the dealership. In all cases, though, I've gotten promotional rates with captive lenders, and was very clear that I would not expect any other pulls besides their lender. Granted, a local dealership did have another financial institution pull me - supposedly Chase wasn't timely in their approval so they shopped me to a local bank - but the dealership never did.

Message 5 of 16
Loquat
Moderator

Re: Dealership shown on Credit Report


@disdreamin wrote:

@sccredit wrote:

@GlennvilleGA is right. The dealer honored what you asked. I have never not had a dealer pull my credit when financed through them. The way financing works with a dealer is the dealer itself is extending you credit on the terms listed on the contract. They subsequently assign the contract to the finance company. 


That's odd, I've never had a dealer pull my credit when I financed through them. The lender does so, obviously, but not the dealership. In all cases, though, I've gotten promotional rates with captive lenders, and was very clear that I would not expect any other pulls besides their lender. Granted, a local dealership did have another financial institution pull me - supposedly Chase wasn't timely in their approval so they shopped me to a local bank - but the dealership never did.


@disdreamin You're more of the exception than the rule.  Almost all dealership will pull credit of their client so that they have a better idea of where to seek an approval.  If I don't know your credit profile and score up front then I can't even begin to know where to start in efforts to get your deal funded.   

 

If a customer has less than prime credit then there's no reason to waste an inquiry on their part or time on my part by trying to hang the deal with a captive lender.  Likewise, if a customer has prime credit there's no reason for me to seek an approval from the likes of Wells Fargo Dealer Service when I know I can get it done with FMC.

Message 6 of 16
WalkerD
New Visitor

Re: Dealership shown on Credit Report

@disdreamin 

same here, I never experienced such situation! I'm thinking about writing a letter to get the inquiry removed. 

Message 7 of 16
WalkerD
New Visitor

Re: Dealership shown on Credit Report

@Loquat I placed a call to the dealer and they explained why they pulled my credit, along with the lenders I requested and it's for the reason you mentioned, however my scores is in the 800s, so it was an unnecessary inquiry. 

Message 8 of 16
micvite
Frequent Contributor

Re: Dealership shown on Credit Report


@WalkerD wrote:

@Loquat I placed a call to the dealer and they explained why they pulled my credit, along with the lenders I requested and it's for the reason you mentioned, however my scores is in the 800s, so it was an unnecessary inquiry. 


It really depends, for example my bmw dealer just sent it to bmw FS that pulled 1 trans inq, other bmw dealership wanted to pull my credit, then send it to bmwfs to pull credit and then to other banks. I specifically asked my dealer how many pulls they were going to do and i told them I only wanted to go through bmw and if it didn't work forget it. they were gonna have to pull twice anyway (I'm custom ordering a car so they wanted to make sure i could actually get it before they had a car with my specs that someone else might not want) and the pull is only good for 60 days and I agreed to the 2 inq. They said they never pull credit because they can just ask bmwfs for a copy of the report so there's not point in dinging it multiple times for the same thing

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Message 9 of 16
disdreamin
Established Contributor

Re: Dealership shown on Credit Report


@Loquat wrote:


@disdreamin You're more of the exception than the rule.  Almost all dealership will pull credit of their client so that they have a better idea of where to seek an approval.  If I don't know your credit profile and score up front then I can't even begin to know where to start in efforts to get your deal funded.   

 

If a customer has less than prime credit then there's no reason to waste an inquiry on their part or time on my part by trying to hang the deal with a captive lender.  Likewise, if a customer has prime credit there's no reason for me to seek an approval from the likes of Wells Fargo Dealer Service when I know I can get it done with FMC.


I get that, was just sharing my first-hand experience as a consumer. I've only ever gone into a dealership for financing at low (0%-0.9%) interest promotional rates and let them know that I'd secure my own financing through my CU or similar if that wasn't approved. I'd prefer not to have random (or multiple) pulls for one purchase, and let them know that up front.

 

[Edited to add: when I contacted them about the extra inquiry from the local bank, the dealership stated that, since their policy was to not pull because they weren't the ones who would finance the deal, they shopped to a local bank to assure they could secure financing. They didn't want me coming in from ~1.5 hours away to pick up the vehicle without knowing for sure financing was in the bag. This made sense, and I can see where what you said about running credit to know you'll be able to secure financing makes equal sense]

 

The irony was that the one extraneous pull I have ever experienced was for an $8k loan on a ~$27k vehicle. Apparently Chase was asleep at the wheel that day and didn't respond quickly enough when the finance person submitted everything. They shopped me to a local bank, and I was very surprised when I received notification of that inquiry.

Message 10 of 16
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