Multiple inquiries for a similar loan

[clipperskipper]

Hey guys, I purchased a 2022 Lexus SUV just off lease from a GMC/Buick dealer. I told the salesperson that I would put $17k down, and finance the balance through them, if they would accept my offer. After several trips to the Manager's office, we inked the deal.

A few minutes later, I was asked to unlock my credit files, so they could access them. My Aura app immediately blew up, as these guys dinged my credit six times-four with Experian, and twice with T/U! I asked the salesperson what the story was, and was told that the F&I guy, who turned into a total creep after declining his $3600 extended warranty, was trying to find the best rate. GMAC, WFDS, Metro C/U, all had hits. I did look at Wells, and they were quoting 6.49% on their site.

F&I guy comes back, approved, now hear this-8.99%! Scores 843/850/847. I'm putting together the balance, and will pay it off first payment.

[pizzadude]

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@clipperskipper wrote:

Hey guys, I purchased a 2022 Lexus SUV just off lease from a GMC/Buick dealer. I told the salesperson that I would put $17k down, and finance the balance through them, if they would accept my offer. After several trips to the Manager's office, we inked the deal.

A few minutes later, I was asked to unlock my credit files, so they could access them. My Aura app immediately blew up, as these guys dinged my credit six times-four with Experian, and twice with T/U! I asked the salesperson what the story was, and was told that the F&I guy, who turned into a total creep after declining his $3600 extended warranty, was trying to find the best rate. GMAC, WFDS, Metro C/U, all had hits. I did look at Wells, and they were quoting 6.49% on their site.

F&I guy comes back, approved, now hear this-8.99%! Scores 843/850/847. I'm putting together the balance, and will pay it off first payment.

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That's a pretty typical car buying experience.   Dealerships will shotgun your credit to their network of lenders which always results in multiple inquires / credit bureaus.  

Guessing they're padding the rate a point or two for themselves if your scores are all in the high 800s.   Always better to go into a dealership with some kind of approval / rates as leverage but if you're planning to immediately pay it off then the interest rate doesn't really matter. 

[CorpCrMgr1]

Sorry this happened to you. Dealerships must get some kind of reward from the financial institutions for shopping a buyer's credit around.

[clipperskipper]

Never experienced this before. Last purchase was a one-year old Camry hybrid in 2016 that we still own. It was at a Nissan dealer when the sharp salesman there told me that there would be a $400 doc fee, unless I finance through them, and wouldn't allow more than $5000 cash down, so off to see the F&I lady. She ran a search, and came up with Wells Fargo, 3.99 %, so I had her sign me up. One ding on Experian, and I paid the loan off on the third installment. I'm really happy with Aura, and the legal services plan offered by our company, it places all of your financial particulars in one app

[pizzadude]

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@CorpCrMgr1 wrote:

Sorry this happened to you. Dealerships must get some kind of reward from the financial institutions for shopping a buyer's credit around.

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I'm sure they're incentivised in some ways, by volume of customers or kickbacks, but in general they're trying to find the "best" rate that will allow them to close the deal and make money on the financing.   "Best" is in quotes because it's not necessarily the best for the customer as it may be padded by the dealer. 

[dunn2500]

cant stand F&I managers, manage to piss a few of them off without even doing anything except denying warranties, etc which I make clear before we sit down...

I allow 1 inquiry for financing and write it down on the credit app, if they cant beat my own than no problem.....lowest rate will generally come from their captive lender.....ive had them shotgun my credit along time ago and never again....

its always whts best for them, whoever they can get the best kickback from and rest assured it can be well over 1 or 2 points (though legally not supposed to be)