Credit rating in re: to auto shopping

shelendeAugust 28, 2006

When shopping for auto's, why do the dealers always want to see the car you came in with? Is it that they check out your license plate without your permission to see if you have good credit in order for them to somehow come up with a price for the new auto you want to buy? Does checking your credit too many times in a few days lower your credit rating? Is any of this thinking incorrect and checking your credit rating has no effect on a credit score? Anyone know anything about this before tomorrow when I go shopping in earnest.

I'm thinking about a Hundai because it's supposed to be reliable but less expensive than a Toyota (which in my opinion is a quality vehicle that lasts)

Any advice is appreciated.

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They like to see what kind of possible trade you may have.
There is no way they can "check" your credit from you license plate. In order for them to check you credit you have to sign to give them permission. I would not do this until you have found the car you want. If you haven't check your credit yourself recently I would do that before you go out shopping so you won't have any surprises. You are allowed to get a free credit report once a year. You have to pay a small amount if you want the credit score. Pulling your own credit report does not impact you credit score. However many inquires can cause it to dip a few points.
Going car shopping "armed" with as much information as you can will make you an informed buyer. Go online, you will be able to find out true invoice pricing on the cars you are thinking about also find out how they hold their value.
Car A maybe $3000 less than Car B but in 3 years Car B maybe worth $3000 more than Car A.
You will also be able to get an idea what you car is worth as a trade in.
If you belong to a Credit Union or have a good relationship with your bank ask them what their rates are. You know how much you can afford to pay each month, by asking your bank or credit union you will know how much you can afford to spend to get that payment.They may also have a program where you are pre-approved for the total amount you want to spend and they will issue you a check for up to that amount. Again do not share this with the dealer.
DO NOT and I repeat DO NOT tell the dealer how much you want to spend each month on payments. The difference between lets say $300 a month and $350 a month may not seem much but can equal a much higher profit for the dealer and a longer loan for you.
Keep repeating you want the price out the door for the car not monthly payment. Once you have found the car you want and have negotiated the price you want you can then pull out your check from the bank.
Allot of car manufactures have "0" %or "1.9" % financing the only people that "qualify" for this are the ones with really high credit scores usually over 720. and you will know this because you have pulled your own credit. :)

Sorry if this is long but I must be one of the few people that LOVE car shopping. Friends and family usually drag me along to "help" them .
Hope this helps

    Bookmark   August 29, 2006 at 8:40AM
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Ooh, a kindred spirit! I love buying cars -- especially when they're for someone else. I have seen people I know make every mistake you mention. It's a good thing we find the process so entertaining; it's pretty thankless otherwise.

    Bookmark   August 29, 2006 at 9:46AM
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Thought I'd replied to this, but don't see my answer, so here goes again. (must have hit the wrong button).

I didn't think they could do a credit report that way, either.

But let me tell you my recent car-buying experience. First of all, we tend to buy a new car that suits our needs, maintain it well, and keep it as long as humanly possible.

So I found something I loved. DH agreed that it was about time to get something new. We went to the dealership on a scouting excursion. Granted, we weren't planning on buying that day (the salesman didn't know that, though), but we were seriously looking at a particular model so we could make our final decision.

Drove in, parked, a salesman approached us, took one look at our '89 Caravan, and obviously made some very erroneous assumptions. I had a lot of questions--which he answered, barely. He wasn't helpful, nor friendly, nor did he offer any more info than I requested, and he didn't try to get us to take a test drive.

I knew he thought we were 'just looking' and had no intention and not the means to buy the car we were looking at.

DD had talked to a different salesperson at the dealership on my behalf, so when I returned, I actually had 2 names. Since the gal DD had spoken with seemed friendlier and more helpful, I asked for her--she was a delight to work with, and because of it, she reaped the benefits of selling us a $36,000 car--most of which we paid cash for.

I think, looking at your car tells them a lot--as mentioned above, they have a rough idea what your trade-in is worth (hey, I got $500 for mine--DOUBLE the blue book value, LOL!), but more importantly, perhaps, they know what you like to drive, how you care for it, etc--which gives them an idea of what to show you if you don't have something specific in mind. Unfortunately, though, the first salesman we encountered, guess wrong when he assumed we were too poor to buy what we were looking for. Just a little more enthusiasm on his part would have garnered him the sale.

And I DO love my new car--hope it lasts as long as the last one did. It's such fun driving around town in an eye-catching 2007 car that many people haven't seen yet.

    Bookmark   August 29, 2006 at 11:01AM
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Congrats on your new car !!! You know we are all wondering what you got :)
What they do is called "plate glassing". they look throught the window to see if they think it is worth going out to "greet "you. Allot of times the other salepeople will send the "newbie" out since they don't feel it is worth their effort. Imagine the look on their faces when the "newbie" makes the sale.

Steve o lol I am glad to see I am not the only "odd person" out there. There is actually a name that car dealers call people like us "third basemen" rofl I am sure they have other names for us that they use in private!!!
you know the first thought I had when I read shelly's post was "ooo I wonder if she lives near me" lol

    Bookmark   August 29, 2006 at 1:47PM
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And just might you happen to have some vacation coming up and ...

... who knows - quite likely there are some interesting things to see and do near Shelley2's place ...

... and, she being a KT kind of person, quite likely is not only quite a bit of fun to be near, but likely is some interesting, as well.

Just a thought.

ole joyful

    Bookmark   August 29, 2006 at 4:12PM
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Oh, it's a 'fun' one--an FJ Cruiser--not to everyone's taste, but it suits me to a 'T'. And I love that it has a household outlet in it for when I have to cook on the road and need to take a small refrigerator.

    Bookmark   August 29, 2006 at 4:57PM
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We purchased the car today. I understand that the last Tuesday of the month is the best day to buy a new car because the salesmen have to make their quota. There was a rebate, and because a family member had that brand,they gave me another break. When I told them that my old car had died at the mechanic's, and some demo place would buy it for $100.00, they even took off more. And when I told them what color I wanted, the only car they had with that color had the sunroof and they did not even suggest charging me more for it (I would not have paid a penny more). They are not charging me more for mats and they are paying to have the old car towed to them from the shop. I just hope there are no unforseen difficulties tomorrow when we pick it up. My old car was a 1993 and had over 190,000 miles. I was hoping for 200,000 but the head gasket blew.

    Bookmark   August 29, 2006 at 10:20PM
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congrats shelly!!! sounds like you made out well. Which did you end up getting .
azzalea - How cute your new FJ cruiser is. That is the first I have heard of it.

Ole joyful - I am desperate for a vacation. We are in a holding pattern while we wait to find out if we are going to be reloacting to Atlanta due to a promotion for DH. So once we find out then we can plan a trip. My birthday and our 3rd wedding aniversary are in the begining of Oct so I am hoping we have heard something by then so we can plan a nice getaway.

    Bookmark   August 30, 2006 at 7:55AM
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