@NRB525 wrote:
INQ of a similar type, such as auto loans, should be aggregated if they are within a certain time period. My understanding is this is automatic.
However, the better approach is to get a bank or credit union to pre-approve you for a loan, then shop the dealer for price, and not allow them to run your credit report. The bank or credit union will then fund the purchase, after you've found the vehicle you want. This may also give you more flexibility when talking with the dealership, particularly if you aren't set on one make and model of car.
+1 on this. in addition to car dealers probably not giving you a great interest rate or playing around with it they are going to use it to manipulate what you think you are paying. like instead of talking about 20,000 for that new car they will be like "its less than 300/month" but give you that 20,000 car at 23,000 with like an 84 month term at 8%
Pre-appoval puts the power in your hands. the only conversation at that point is about price.
I wont even go to the dealership until price is agreed on via email. if they wont give me a price via email, i remove them from my list. ive used this method to buy a car 8 times, and everytime ive gotten my car 5-20% below invoice price.
-get pre-approval (i like capital one, their auto navigator tool helps you get exact terms on the car you want)
-find all the dealers in your area with that car. ignore their advertized price
-find the invoice price of the car (edmunds.com)
- send an email to every auto dealer... copy them all so they can see that you are reaching out to every dealer
email should be something like:
Dear auto dealers,
I have reached out to every dealer within 50 miles with a (insert car model/type). I'm pre-financed and ready to come in immedietly for purchase once my terms are met this saturday (give them a day within like 10 days, you dont need to actually be telling the truth here but puts pressure on them). The first dealer who can meet my price of (insert the price you want, i usually go with 10% less than invoice price) will be the first dealer i visit.
-I have already test drove this vehicle
-I will not entertain financing through the dealership i have my own financing
-I will not come to the dealership until you have met my requested price
-If you are unable to provide a quoted offer via email i will remove your dealership from the list
-I will only consider email offers. It is irrelevant to my search if you can offer lower deals in person
In the event that my price is not met i will be visiting dealerships in the order of lowest offer first. Anecdotal items are of no consequence to me. im not interested in your dealer being "rated highly" or "having huge sales". im interested in bottom line price only.
thank you
