GM to allow overnight testdrives
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Joined: Feb 2002
Posts: 1,024
Originally posted by redzed
This just sounds like a clever ploy to extract credit applications from reluctant consumers. Knowing car dealers the way I do, they'll run the test-drive candidate's credit, send them out in the car, and then send the application to 10 seperate banks. When the customer brings back the car the next morning, their credit score will have dropped 50-points(!) from all of the unsolicited inquiries.
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This just sounds like a clever ploy to extract credit applications from reluctant consumers. Knowing car dealers the way I do, they'll run the test-drive candidate's credit, send them out in the car, and then send the application to 10 seperate banks. When the customer brings back the car the next morning, their credit score will have dropped 50-points(!) from all of the unsolicited inquiries.
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This is a myth put forth by lenders who don't want you shop around
Last edited by slt; Mar 27, 2003 at 03:44 PM.
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Posts: 1,954
Originally posted by slt
That is not how credit works. All inquiries in a 14 day period only count as one inquiry. On top of that, all inquiries don't affect your credit score untill 90 days later. And on top of that, inquiries usually have only a marginal effect on your credit score as they are only 10% of your score.
This is a myth put forth by lenders who don't want you shop around
That is not how credit works. All inquiries in a 14 day period only count as one inquiry. On top of that, all inquiries don't affect your credit score untill 90 days later. And on top of that, inquiries usually have only a marginal effect on your credit score as they are only 10% of your score.
This is a myth put forth by lenders who don't want you shop around
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Joined: Feb 2003
Posts: 18
From: Harvard, IL
I dont really think this is a new concept fellas...My parents have been taking cars overnite to test out for years...I think it might have something to do with the fact that my dad's best man from their wedding owns the dealership though....hah
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Joined: Mar 2002
Posts: 4,254
From: Darien, IL, usa (Chicago W.Suburbs)
Originally posted by HiYaPerri
I dont really think this is a new concept fellas...My parents have been taking cars overnite to test out for years...I think it might have something to do with the fact that my dad's best man from their wedding owns the dealership though....hah
I dont really think this is a new concept fellas...My parents have been taking cars overnite to test out for years...I think it might have something to do with the fact that my dad's best man from their wedding owns the dealership though....hah
Brat! You wana hook me up? How far away in IL are you from me?
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Joined: Feb 2002
Posts: 1,024
Originally posted by redzed
I'm afraid that this myth is very real. You can reasonably expect your credit score to drop by 5 points for every inquiry. For alot of people, the multiple inquiries that result from a single visit to an automotive dealership will make the difference between mainstream and "special" financing.
I'm afraid that this myth is very real. You can reasonably expect your credit score to drop by 5 points for every inquiry. For alot of people, the multiple inquiries that result from a single visit to an automotive dealership will make the difference between mainstream and "special" financing.
If I pull your credit 100 times in one day, it will only count as one inquiry.
Lenders, including me, will always tell a potential customer that running their credit will bring their score down, but we only do that to keep you from shopping us around.
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Joined: Mar 2002
Posts: 1,954
Originally posted by slt
Yes, but you are protected by the de-dupe system as described above. It is in your best interest to shop around and you wont be penalized for doing so. that is why there is a 14 day shopping period and a 90 day buffer.
If I pull your credit 100 times in one day, it will only count as one inquiry.
Lenders, including me, will always tell a potential customer that running their credit will bring their score down, but we only do that to keep you from shopping us around.
Yes, but you are protected by the de-dupe system as described above. It is in your best interest to shop around and you wont be penalized for doing so. that is why there is a 14 day shopping period and a 90 day buffer.
If I pull your credit 100 times in one day, it will only count as one inquiry.
Lenders, including me, will always tell a potential customer that running their credit will bring their score down, but we only do that to keep you from shopping us around.
The automotive finance business is as crooked as it gets. The average dealership finance manager is about as trustworthy as a boxing promoter. If you go into a finance office, expect to have 3% tacked onto your car loan over the real rate - at least. These people lie, commit fraud, and routinely doctor credit applications.
If you have to make out a credit application for this testdrive program, it isn't worth the risk.
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