auto financing question!

[Anonymous]

Hello all,

My wife and I are purchasing a new car at the end of next week thru our dealer here in town. We have decided to go thru our credit union for our financing. We have requested our dealer not run our credit as we have already secured the loan thru our CC. However he had mentioned to us that it does need to get checked for Privacy Act reasons but will not be submitted to the banks. How true is this?? does it need to be checked?

Thanks

[TRC_WA]

I was told the same thing when I bought my car last month. 

I had CU pre-approval but they told me my CR still needed to be pulled... homeland security blah blah...  A few people here at myFICO told me that wasn't the case but it's too late now.  I ended up not even going with my own CU financing... I went with another through the dealer.

I took 15 INQs across all 3 CRA's... but only lost 1 point on EQ. 

[Anonymous]

I have also read online that this is used depending on the dealer...just dont understand why its needed.

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@TRC_WA wrote:

I was told the same thing when I bought my car last month. 

I had CU pre-approval but they told me my CR still needed to be pulled... homeland security blah blah...  A few people here at myFICO told me that wasn't the case but it's too late now.  I ended up not even going with my own CU financing... I went with another through the dealer.

I took 15 INQs across all 3 CRA's... but only lost 1 point on EQ. 

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[SamsungHDTV]

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@Anonymous wrote:

Hello all,

My wife and I are purchasing a new car at the end of next week thru our dealer here in town. We have decided to go thru our credit union for our financing. We have requested our dealer not run our credit as we have already secured the loan thru our CC. However he had mentioned to us that it does need to get checked for Privacy Act reasons but will not be submitted to the banks. How true is this?? does it need to be checked?

Thanks

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No, its not true and your credit does not need to be checked. What varies by dealerships is how ethical the finance manager is. If they use this line on you, they are scamming you into checking your credit hoping to beat your financing.

What they are saying is that its part of Privacy Act or Patriot Act, which requires to collect certain information only when purchasing with $10,000+ in CASH. This is the same law that requires the banks to do same thing when you deposit or withdraw more than $10K. Its to deter terrorist financing.

Article on edmunds.com here: http://www.edmunds.com/car-buying/car-dealership-credit-report-scams-and-the-patriot-act.html

If I were you, I would refuse to provide my social as its not required unless you're buying in cash. Don't sign any type of credit application. You can simply walk because they are being unethical. Or you can play hard ball request this policy in writing. Then bring a printed copy of the above article and ask for clarification. Then say you'll need to double check what they are saying. They should cave.

[gdale6]

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@Anonymous wrote:

Hello all,

My wife and I are purchasing a new car at the end of next week thru our dealer here in town. We have decided to go thru our credit union for our financing. We have requested our dealer not run our credit as we have already secured the loan thru our CC. However he had mentioned to us that it does need to get checked for Privacy Act reasons but will not be submitted to the banks. How true is this?? does it need to be checked?

Thanks

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Ice all your credit reports and walk in with your pre approved financing.. There is no need to run your CRs as stated its a ploy to see if they can beat your financing and you will end up with a bunch of needless HPs..

[guydiver]

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@gdale6 wrote:

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@Anonymous wrote:

Hello all,

My wife and I are purchasing a new car at the end of next week thru our dealer here in town. We have decided to go thru our credit union for our financing. We have requested our dealer not run our credit as we have already secured the loan thru our CC. However he had mentioned to us that it does need to get checked for Privacy Act reasons but will not be submitted to the banks. How true is this?? does it need to be checked?

Thanks

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Ice all your credit reports and walk in with your pre approved financing.. There is no need to run your CRs as stated its a ploy to see if they can beat your financing and you will end up with a bunch of needless HPs..

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Ditto.  Game over.  They won't lose a sale over it. 

[Anonymous]

Thanks guys!!  i kinda had a feeling that they want to do this to try and get us a better rate without us knowing. we are still going with our own financing and ill be sure to post pics as soon as we get our new ride!

[SamsungHDTV]

Let us know what kind of nonsense they say.