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Smart Shopper Smart Shopper-Archives Any Questions for a Car Dealer? 
16377 messages, Last post on Feb 11, 2006 at 4:59 AM
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My question was whether the practice of pulling a credit report as a matter of course was the norm, not whether it should occur during the discussion of financing. Obviously, if the customer wishes to discuss the dealership's financing options, they need to be willing to provide access to credit data. But if they have no need for these services, you have no business knowing there financial history. And as for the 20/20 piece, it just goes to show that a little research and leg work up front can save you substantial money in the long run. I too, had to laugh at the "suit" trying to put a good face on the practice, saying they are providing a valuable "service" to their clients. While I agree the report was a bit sensationalized, it may help a few people who had no idea that car dealerships can and do make profits on the loans they arrange. It is yet another piece of evidence that suggests that anyone who wishes to purchase a car had better do a lot of work prior to setting foot inside a dealership. Otherwise, they are setting themselves up to part with more of their cash than is necessary. |
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my policy has always been clear and simple concerning consumer credit reports...the only time we run them is if the customer brings up the bad credit ahead of time or once we have a signed deal. Cash deals do not have credit pulled. Experian (trw), Trans-Union and Equifax are the big players. All three sell tremendous amounts of consumer information to anyone who is willing to pay for it. They are the ones giving out everyones secrets. Rich |
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are the BIG 3. TRW has been known to be well not up to standard on clearing incorrect info. I think it was 20/200 or Flatline NBC that did a piece on this fella who had very good credit, but despite having incorrect info removed TRW kept putting it back into his report. They got sued. And Lost BIG TIME. They are no appealing the case. I mean they lost BIG TIME Millions in damages. He will never see a penny of it. I check my report every 6 months and keep all records up to date. It took me 9 months to get Chase Manhattan to remove incorrect info on an account of theirs from 5 years ago. In NYS they have 30 days to resolve a dispute, they ignored it for 8 months and I had to keep writing letters, finally they figured out they had nothing on file, as in they couldn't even find the files in "storage" so they removed it. Would have been nice if they held up to the letter of NYS banking laws. Not likely though. |
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What is the best time of year to sell a car? I would think (at least in New England and northern states) that this might be a good time- lots of people thinking their old cars might not make it through the winter.... Any historical rules of thumb for this sort of thing? |
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Again you keep trying to put words in my mouth. Never did I state that it is our dealership's policy to pull everyones' credit bureau. I said it is not illegal in the state of Va. No I'll repeat what audia8 said: If a customers gets anal retentive about the credit issue (interest rate) we will gladly ask for his permission to check his credit in order to quote him/her/they the rate they qualify for. Like I said I could care beans about what their credit is until we settle on the vehicle they'd like to purchase. ; ) Mackabee P.S X-FILES back on November 5th. I'll see you there agt. Cooper. |
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In relation to the 20/20 "expose" on dealership loan practices, I came across this little tidbit that is required by Virginia any time a party to the sale of real estate is also going to assist in securing the mortgage and will profit from that assistance. This notice must appear on a loan application in bold type, minimum 10 point size. It must be acknowledged by signatures of all borrowers. NOTICE We have offered to assist you in obtaining a mortgage loan. If we are successful in obtaining a loan for you, we will charge and collect from you a fee not to exceed .... % of the loan amount. We do not represent all of the lenders in the market and the lenders we do represent may not offer the lowest interest rates or best terms available to you. You are free to seek a loan without our assistance, in which event you will not be required to pay us a fee for that service. If you are a member of a credit union, you should compare our interest rates and terms with the mortgage loans available through your credit union. Maybe something like this should be added to the buyers order for dealerships who will also arrange financing for the customer? I'm sure the "suit" who was representing the dealerships on "20/20" would be in favor full disclosure on this "valuable service" that dealers provide...... |
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I was at a Toyota dealer this past weekend looking to buy a 2001 Avalon. The negotiations were going well and I ended up with a great price. When the saleman began to fill out the buyer's order whee he lists the car with the options and my down payment (it's like a dealer standardized form) I saw that there was a $399 "processing and delivery" charge that is assessed automatically. I asked the saleguy to explain this fee but he just gave me a roudabout answer. I walked out because I can't think of what kind of service would justify this amount. I was afraid to sign thinking that this was a scam by the dealer to recoup whatever money they lose from potential negotiations. Is this fee justifiable and if not, how can I negotiate to get it lowered or off the application all together? Thank you. |
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| Processing fee is probably just a way to recoup money lost in negotiiations. However, if the fee was not included the final price would probably have been $400 higher. It is also reasonable to assume that a state inspection, Pre Delivery Inspection, Full detail, Full tank of gas, and various notery and other charges could total $399. Your graet price was probably at least $400 lower than any other price you got because of this fee. I'm sure you could attempt to negotiate it, just don't expect it to work. | |
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