To ask or not ask before they run your credit

[steele]

I am seeing two different opinions.

1. Don't tell them your situation ( say if you have high DTI) or...

2. Ask them upfront - what deal did you get someone with credit in my particular situation. 

Is it best to NOT disclose? 

I'm more comfortable being upfront. But I don't want to jeopardize anything.

Should I feel lucky to get a car - or get my New York car negotiator friend to negotiate? 

Do you really want to try and negotiate when you think you might have an issue? 

[Kevin5974]

I appreciate when someone is upfront with me. If you say you are Tier 1 credit, Ill go through the motions and show payments without running your credit. If it is what you say it is, I can hold my end of the bargain when its time to lock down a deal.

Likewise, if you tell me youre a 580, its hard for me to ascertain what I can do for you, without fully knowing your situation. If you dont want to run your credit, bring me a full report so I can see what kind of buyer you are. There are 580 scores I have gotten 0% but also 580 scores that get a 20%+ loan. Each situation varies.

I tend to believe if you arent 680 and above, you dont get to hold your cards close to your chest. I suppose I need more info to answer your question...

Finance Manager for Ford and Kia

[Loquat]

Like @Kevin5974 mentioned, it all comes down to profile.  When I was spinning paper in the box I appreciated if a customer was upfront with me but it certainly wasn't information that was necessary.  My job was to obtain financing for the customer while maintaining profit for myself and the dealership. 

I used to tell customer who were skeptical that I was there to move vehicles, and to trust and believe that I was going to do everything within my power to get them in one.  If you credit was straight, I'd shoot you straight.  I'd ask needs assessment questions and sell my menu to you accordingly. 

Don't be afraid to be upfront.  A Finance guy is going to try and sell you the menu regardless of what your score is, there's no getting around that...and it's his job to do so (tactfully I would hope).  If your credit isn't on solid ground just know that you're going to pay a little more than what others.  But don't believe because your credit score is low that you don't have options.  If it doesn't feel right...stop and walk away.  There's no harm in doing so and the few dings you may take on inquiries aren't that big of a deal anyway.

So, OP.  Don't be afraid.  Go in there, be honest if you want an honest answer.  Best of luck to you!

[steele]

Thank you!! Truly appreciate the response. 

I don't care much for the rookie sales guys. Seem to have problems there. 

[marty56]

Before going to a dealer, I would go to a local CU with a copy of your credit report and see what they say.  They may want you to apply first but it won't cost you an INQ if they don't.  I  wouldn't trust the dealer to do that since most are trigger happy to pull your credit before they even ask what car you want.

[steele]

So the best credit report is here at myfico correct ? 

Great idea thank you.

[Loquat]

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@marty56 wrote:

Before going to a dealer, I would go to a local CU with a copy of your credit report and see what they say.  They may want you to apply first but it won't cost you an INQ if they don't.  I  wouldn't trust the dealer to do that since most are trigger happy to pull your credit before they even ask what car you want.

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And as much as you may not care for this, that's the absolute CORRECT way to do it.  If a customer is sub-prime...there is absolutely NO NEED for them to be looking and getting their hopes up from a King Ranch F150 when the best they can get is a used Escape.  I spent a many of years trying to explain this to greenpea salesmen...when a customer has subprime numbers...you land a car on them, not the other way around.  I've witnessed a lot of deals go south because the salesman didn't get finance involved early enough in the deal to set the right expectations.  You don't dine 5 star steak house when all you can afford is bologna. 

I do agree that fiance managers shotgun customers to many banks...and I don't care if you believe me or not, sometimes it's what has to be done, and for good reason.  Yes, there are some finance managers who will do this to see how much profit that an derive from the deal...but not everyone is like that, so don't paint with such a broad brush.   To think all Finance Mangers are doing this for extreme personal gain is incorrect.  When you have a customer who hasn't ever licked a stamp to pay a bill a day in their life, shotgunning is sometimes the best course of action if you really want to see if there's anything that will stick.

OP, continue to do your research.  Seek guideance from your local credit union if you desire.  Check CapOne prequal just to see what range they put you in.  The best thing you can do is educate yourself about what your credit is and what you can reasonably obtain with your score, downpayment, and debt to income ratio.  And as I've said before...if it feels wrong, walk away!

[steele]

Good feedback.

My question about that is how far apart from the lease purchase to check credit? I don't like the idea if I get pinged for a hard pull without being ready to pull the trigger on a car. 

I can afford a mid 3's payment I just don't WANT a mid 3's payment. If I wait another 2 weeks Ill have a 705 Experian. From the 673 now.

TIA!

[Anonymous]

What kind of a car are you looking for? I run a Toyota franchise near Philadelphia. If you deal with a GOOD DEALER, it’s always best to tell them the situation upfront. That way they can show you cars that: 1. You can afford 2. The bank will finance 3. You won’t have to drive 3 cars and be told the bank won’t buy any of them, and have to come up with a ton of money down.

The best course of action is find a dealer your trust, explain the situation, your ideal car payment etc. bring pay stubs phone bill and 3 references. Have them run your file and have them show you what fits the approval. A lot of times not being a hammer solely on vehicle price and being flexible will save you a fortune in interest and get you a better deal. What’s more important, an extra $500 off the car or paying 5% APR instead of 18%. Let me know if I can help in any way.
Thanks!
Matt

[steele]

Hi Matt

Im looking at Audi Q3, Staying with Volvo S60, or Subaru Forester, and if Im having issues, thought about Camry SE and worse cae buy a temp used 2017 Mazda 3 until things improve. 

I have a great credit background. On time with everything always. Been paying for a Volvo for 3 years, score will be 705 in a week or so. ( Hopefully). 

Thoughts? Phone bill... so funny how old school that is with everything being online.