Applies to All Model Years Your purchase experience? I have preapproval but dealer wants me to fill out a credit

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Thread: Your purchase experience? I have preapproval but dealer wants me to fill out a credit

  1. #1
    Junior Member rotisserie's Avatar
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    Your purchase experience? I have preapproval but dealer wants me to fill out a credit

    Mods if this is the wrong area for this question, please delete.

    I have a preapproval from my credit union and they have my information all set up in a database where dealers just need to look up my info & my credit union’s and I can get my Crosstrek that same day. But the dealer wants me to fill out a credit application anyway and I pushed back, because I’m concerned my credit score will go down again because of the added hard pull.

    Any creditor in the meantime can’t do anything to my info because I have a freeze in place for all of my credit reports. I told them so and they backed down. They said they still want the form filled out and given to them the day my vehicle arrives. And also to bring my pre-approval letter. The dealer confirmed they’ve worked with my credit union in the past with no problems so yeah.

    What’s the deal? Is this standard for dealerships? I’m a satisfied client with my credit union and I’m ok with my rate.

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  3. #2
    Senior Member AstroKats's Avatar
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    Quote Originally Posted by rotisserie View Post
    Mods if this is the wrong area for this question, please delete.

    I have a preapproval from my credit union and they have my information all set up in a database where dealers just need to look up my info & my credit union’s and I can get my Crosstrek that same day. But the dealer wants me to fill out a credit application anyway and I pushed back, because I’m concerned my credit score will go down again because of the added hard pull.

    Any creditor in the meantime can’t do anything to my info because I have a freeze in place for all of my credit reports. I told them so and they backed down. They said they still want the form filled out and given to them the day my vehicle arrives. And also to bring my pre-approval letter. The dealer confirmed they’ve worked with my credit union in the past with no problems so yeah.

    What’s the deal? Is this standard for dealerships? I’m a satisfied client with my credit union and I’m ok with my rate.
    I believe that here in CA the dealer has to pull credit even if it's a cash deal, something to do with money laundering prevention. Also, you're allowed a few credit enquiries withing a short period without dinging your credit, as most people shop around for a new car loan. What does your credit union say about the dealer's request?
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    Chase can probably beat your CU as they provide special financing. That said, the dealer really wants to try to convince you to roll in some dealer cash cows like warranties with their easy financing.
    The reason they pull credit for cash deals is a separate concern. If you pay cash for a car that exceeds what the government deems feasible for you, expect the IRS to come knocking.

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    My question to the finance individual you're dealing with would be "Why do you need to pull my credit when my financing is set up with my credit union? I'm not interested in anything else." or something along those lines and see what they say. If there is some kind of legal requirement for the credit check they will have to tell you, but if it just sounds fishy like some dealership sales nonsense I would push back and refuse. Ask if your sale is dependent on the credit check and will they lose the sale without it.

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    Quote Originally Posted by rotisserie View Post
    Mods if this is the wrong area for this question, please delete.

    I have a preapproval from my credit union and they have my information all set up in a database where dealers just need to look up my info & my credit union’s and I can get my Crosstrek that same day. But the dealer wants me to fill out a credit application anyway and I pushed back, because I’m concerned my credit score will go down again because of the added hard pull.

    Any creditor in the meantime can’t do anything to my info because I have a freeze in place for all of my credit reports. I told them so and they backed down. They said they still want the form filled out and given to them the day my vehicle arrives. And also to bring my pre-approval letter. The dealer confirmed they’ve worked with my credit union in the past with no problems so yeah.

    What’s the deal? Is this standard for dealerships? I’m a satisfied client with my credit union and I’m ok with my rate.
    I'd probably go along. They may beat your CU's rate.

  8. #6
    Chase (subaru motor finance) was actually a little higher then my credit union. So the finance guy at the dealership called them and told them if you dont match their rate hes going to use the credit union. After me telling them i would go to my credit union for the $8 a month difference they said they would match it. I didnt want to drive 45 min to the credit union, do my paperwork, then 45 min back to dealership.

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    Senior Member AstroKats's Avatar
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    We got a ten-day option clause. The dealer financed it through Chase Subaru. They had a 2.9% deal at the time. Then we had ten days to find a better offer and get a check to them. Our bank had a slightly better deal (like 0.1% better) but it was a much short term so we ended up just leaving it with the dealer.
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    I kinda did this too. Knowing my CU was offering a lower rate, and I could easily get the funding and check to the dealer. But when the dealer came very close to the CU rate, I signed for the Subaru financing through Chase. I really like the Chase set up and the loan popped right up on my Chase website that I use for 2 other Chase accounts. It's super user friendly, and I like seeing all my debt in one place. I watch the payments post, make principle payment that post in a snap, and watch the monthly interest closely.

    Subaru was smart to partner with Chase and they offer a great professional product worth taking a look at.

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    Senior Member Okie Hick's Avatar
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    My experience went smoothly. I gave the dealer my '14 Mustang and a little cash. Everyone was happy.....
    2018 Subaru Crosstrek 2.0i Premium with Eyesight (aka Shrek)
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  12. #10
    Junior Member rotisserie's Avatar
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    Quote Originally Posted by AstroKats View Post
    I believe that here in CA the dealer has to pull credit even if it's a cash deal, something to do with money laundering prevention. Also, you're allowed a few credit enquiries withing a short period without dinging your credit, as most people shop around for a new car loan. What does your credit union say about the dealer's request?
    Thanks, the credit union said "Tell them to pull your information up on the CUDL database first before they start pulling your information." This database i mentioned is the acronym for Credit Union Direct Lending. I'm bringing my letter in with me, my best protection against their insistence on shopping for lenders on my behalf when I don't want it anymore is my credit freeze.

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