Mazda 6 Forums banner

1 - 16 of 16 Posts

·
Registered
Joined
·
543 Posts
Discussion Starter #1
Got a message back from the dealer answering some questions for me. Included in her message was:

We usually like to see a $500 deposit on orders. It does need to be cash or check. We also like to make sure credit is approved before we place the order so there are no surprises when the car gets here. Checking credit only takes a few more minutes of your time.


So....would the dealer still need to check your credit if you already had financing arranged thru a bank, credit union, etc.? And would the dealer still need to check your credit if you are paying CASH?

I've already ordered my credit reports in the past month and know that everything is stellar. The only thing I DON'T know is my FICO score, as I didn't order the kind that included the FICO score on them. Oh well. I'm confident of my credit standing. But the point is, I'm not financing the car thru the dealer/Mazda, so would they still need to do this?? I'm wondering, because doesn't people/companies running credit checks on you - especially unnecessarily - affect your FICO score?
 

·
Registered
Joined
·
526 Posts
Reading Topic: Checking credit when buying a car

My dealer only required a deposit. They weren't going to check my credit until the car arrived - and then I went through Peoplefirst.com so they never looked at it.

I'd tell 'em you've secured financing, your credit has been checked and you don't want them checking it again. The number of times your credit is checked has an effect.

If they insist, I'd consider walking away. You've given them 500 bucks, probably provided the S-plan pin. What else do they need?
 

·
Registered
Joined
·
174 Posts
Reading Topic: Checking credit when buying a car

The dealer is trusting you to buy this car, so they want at least some assurance that you'll be able to pay for it. If you don't want them to check your credit, you might need to get a pre-approval letter from the bank and show that to them when you place your order.

As for worrying about them checking your score and how it'll affect your FICO, I stopped worrying about that a while ago. As long as the rest of your credit history is in order, I don't think that'll hurt you. :)
 

·
Registered
Joined
·
6,771 Posts
Reading Topic: Checking credit when buying a car

I'm with Ruefus. I think it's completely unnecessary for them to check it, especially if you do have financing in place. It's not like Mazda can't sell these cars anyway.

I would hazard a guess the reason the dealer wants to check your credit is so they can try and do the financing (read: $$$) themselves.
 

·
Registered
Joined
·
526 Posts
Reading Topic: Checking credit when buying a car

One other thing - if you sign their deal sheet (or whatever they call it) - that is a legally binding contract. At that point you are required to buy that car regardless of proper financing or credit rating.

I'd imagine they'll make you sign that ahead of time. Mine did and I understood that. Once that's done, they've got no case to check credit. As I understand it, legally you HAVE to buy the car once you've signed the contract. The dealer can let you out, but they don't have to.
 

·
Registered
Joined
·
315 Posts
Reading Topic: Checking credit when buying a car

I would NEVER sign anything binding me to buy a car before I had a chance to drive it and refuse it if it didnt' suit me.

If you sign anything that binds you to purchase make sure you have some notes in there that give you a way out if the car is not to your satisfaction. It may not drive well or it may have damage, etc... The last car I bought did have paint damage when it arrived but I had a right to refuse even though I had bought the car.

Tome
 

·
Registered
Joined
·
526 Posts
Reading Topic: Checking credit when buying a car

You definitely want to do what M-006 says. I'd actually forgotten about that. My contract did have a number of caveats in it - which oddly enough included "acceptable financing must be secured" as well as a clause stating the car must be in satisfactory condition - according to me.
 

·
Registered
Joined
·
543 Posts
Discussion Starter #8
Replying to Topic 'Checking credit when buying a car'

So...if you're paying cash, how would they then verify that you will be able to pay for it? Are you supposed to show them a copy of your bank statement? Who's to say you wouldn't go out and blow that $20-30K during the 8-12 weeks when the car is on order? :p
 

·
Registered
Joined
·
628 Posts
Reading Topic: Checking credit when buying a car

From paragraph 6 of my 'Order Contract':

QUOTE
6. Non-Refundable Deposit. Unless this Order is cancelled by Customer in accordance with Paragraphs 3 and 4 above (says I can cancel if the price changes after order); Deler shall have the right upon failure or refusal of Customer to accept delivery of the ordered vehicle or to comply with terms of this Order, to retain as liquidated damages any cash deposit. blah blah blah[/b]
So basically, if I cancel, they get my deposit. I imagine most contracts have similar wording. I had my dealer put a caveat in for "unforseen circumstances" that the deposit would be refundable. (6-8 weeks is a long time)
 

·
Registered
Joined
·
170 Posts
Reading Topic: Checking credit when buying a car

Each credit inquiry lowers your FICO score by 4 points. Just something I learned in my business.
 

·
Registered
Joined
·
683 Posts
Replying to Topic 'Checking credit when buying a car'

Ok call me clueless....what is a FICO score?
 

·
Registered
Joined
·
1,262 Posts
Reading Topic: Checking credit when buying a car

QUOTE
What is a FICO score?
It's a number lenders use to help them decide: "If I give this person a loan or credit card, how likely is it that I will get paid back on time?" A FICO score is a snapshot of your credit risk picture at a particular point in time. The higher your score, the lower the risk to lenders. Fair, Isaac and Company Inc. develops the mathematical formulas used to produce FICO scores.[/b]
I know a guy named Vinny that'll loan you the dough, no credit check needed. :D
 

·
Registered
Joined
·
526 Posts
Reading Topic: Checking credit when buying a car

FICO is really a company - Fair Isaac Credit Organization. It's a company that provides information on people & companies.

From a quick Google search discussing the FICO score:

Each time your credit report is pulled, it is run through a computer program with a built-in scorecard. Points are awarded or deducted based on certain items such as how long you have had credit cards, whether you make your payments on time, if your credit balances are near maximum, and assorted other variables. When the credit report prints in your lender’s office, the total score is displayed. Your score can be anywhere between the high 300’s and the low 800’s.
 

·
Registered
Joined
·
980 Posts
Reading Topic: Checking credit when buying a car

:D
All I know is that if you pay cash there is no credit check and this is what I am going to do. I can't get a co-signer for financing so cash it is.
 
1 - 16 of 16 Posts
Top