I don't understand why dealers lie to us.

[04Cobra]

Dealers do all they can to make a sale. I used to be in car sales and quite honestly, I hated every bit of it. Word of advice, try to get a pre-approval from your local bank before car shopping. 

[camera_jen]

Because the sales guy will tell you what you want to hear in order to make a sale.  He really has no control over the financing department.

[Anonymous]

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@04Cobra wrote:

Dealers do all they can to make a sale. I used to be in car sales and quite honestly, I hated every bit of it. Word of advice, try to get a pre-approval from your local bank before car shopping. 

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Agree 100%.  

[patrick00032001]

Our dealership doesn't even pull credit for a transaction, I have about 6 lenders I use, I know what bureau they use, and what formula they score with, some use a classic model, some use auto enhanced, and they all pull TransUnion. My boss told me 8 years ago when he hired me to build his finance department, he was against us pulling a credit bureau, for one, it costs us extra, and why? When the credit union or bank will pull it anyways? His philosophy is, this keeps every one honest, and makes the deal clean, and hes right, it just gives the dealer another way to lie to a lender, especially about income, the bureau will state your debts and monthly payments, if the dealer sees on your bureau you dont budget due to DTI issues, this gives him an angle to pad your income, and most indirect lenders dont stip for income! I have seen and heard so much over the years being in this business, it can be down right dirty!

[Anonymous]

Doubt it.  You just never know with them.  They pulled EQ & EX with me.  Only through BMW.  Maybe it was the type of financing you wanted?

[Anonymous]

@ Patrick

I actually see your point clearly. I never actually understood why income mattered and what stated income if written on paper had anything to do with buying. The Dealership/Finance Mgr/Salesman is there to get you in a car on best possible terms. He doesn't want that you not buy a car because of your income. Its for the buyer to figure out whether or not he can afford it. If the buyer ends up defaulting on the loan it then becomes the buyers responsibility. 

The other point you make is about debts. If there are REPOS CURRENTdefaults/lates or collections in amounts higher than the car payment itself, that will forever be a problem. ANYTHING 4+ years from DOFD, is irrelevant in financing thru dealership.

My experience with credit Unions has been that they need to verify all income/assets/debts before they can issue a car loan. so all W2's 1099 income or tax returns is a must. Also, unless you have another current car loan/other loan in progress that you are making payments on they are not willing to loan you an auto loan. It is their way of confirming income knowing that last year payments have been made on time and in the required amounts. 

So most INDIRECT LENDERS dont actually pad for your income. 

I believe now how financing at dealership matters and works. very great insights. 4

[patrick00032001]

You misunderstood my post, I said it gives a dealer an angle to pad your income, not the indirect lender, obviously no lender would loan money to a customer if they dont meet their credit lending standards, based on whats written down on paper.

[surferchris]

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@Anonymous wrote:

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@04Cobra wrote:

Dealers do all they can to make a sale. I used to be in car sales and quite honestly, I hated every bit of it. Word of advice, try to get a pre-approval from your local bank before car shopping. 

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Agree 100%.  

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Double agree 

[Anonymous]

what do you know are lending standards of lenders whether direct or indirect? how does one qualify based on income of $ 50000 but high DTI ratio? almost 48% DTI.

How much DTI should be to qualify?

[Existentialist]

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@ah32 wrote:

I test drove a car yesterday at the BMW dealership, but was interested in a few they had on their lot, so I discussed pulling my credit. I asked them if we can ask to only pull transunion. He said we can ask them to pull whatever we want. He had been in finance and seemed very knowledgeable.

So, sure enough, all three were pulled. I don't understand. I felt comfortable with him and believed he would follow through and only pull transunion. He said it with confidence, so I didn't worry. I guess it doesn't matter, but now I don't feel comfortable going forward with the deal. I've been texting him and he said he wouldn't have gone through with the app had he only been able to pull TU. I don't understand. I hate car buying!! I'm so irritated. Time for some wine.

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This is a common dilemma so you're not alone but know this... Its a dog eat dog world.... thats all there is to it. And car dealerships in particular.... will always do & say whats in their best interests not yours. Doesnt make them necessarily bad - to them its just bizness. And thats exactly how U need to approach it. Its important to know this going in. Therefore b4 U even hit the lot u need not only to set your terms up front but walk in with your own financing in hand (there's a reason dealerships want to finance U). Once U relinquish control... things become much more difficult. The car buying process can be unsettling enuff but arming yourself in advance is key.

One thing to note: since car buying has regained momentum (sans financial crisis) its not quite as easy to negotiate certain deals but U can still find a happy median. They want to make a sale and U want to buy without being taken to the cleaners. If U really want to reboot (with a different dealership cuz of the bad taste left in your mouth) thats fine cuz extra pulls arent going to be much more of an issue given they're within the same general timeframe(?) and are related to your car purchasing. Just proceed bearing in mind that its not personal but about bizness. They're looking out for theirs - so U look out for yours. Best of luck.