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Car purchase question......


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My DH and I are thinking about purchasing a new (used) car. How much will this affect our score?

Here's the specs......we owe about 17,000 on the current loan (our trade) and our new loan will probably be about 30-35,000.

Will this lower our score? Any idea how much?

What about the pulling of our credit report also, will that make it go down a bunch also?

We really need to get out of the current loan as we are going downhill fast equity-wise. Our vehicle is not holding it's value at all and we need to be in something that will.

Thanks for any input on this! :)

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First off, do all of your research ahead of time, know which companies you want to check with and set aside a two week period to do all of your shopping only.

Pull copies of your credit report ahead of time, and show these to the company first. Specifically tell them, that you don't want them pulling your credit report without them first looking over your credit report and letting you know ahead of time if you may possibly. Insist apon this, some of them will try to pull no matter what you wishes are. So you have to be firm on this matter.

Once you know who you are interested in, then go at it agressively within that 2 weel period, because. All pulls will count as one, they will still show up on the credit report, but the scoring will only count them as one. If you stay within 14 days.

The score always does take a hit on new credit and inquiries, but each is different so there is no way to know exactly for sure.

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These should be fine, if solely with dealerships, it is the banks that present problems, since they do so many different types of loans - it is easy for a loan officer to omit the proper PP Codes submitted every time credit reports are pulled.

I don't know how to fix the problem - since education is lacking. Business don't always know they are making mistakes and it is way to many to tackle on teaching. You can try to say please make sure when the credit report is pulled that you use auto loan permissible purpose code. But that is the best, other than to stress the importance of keying these in properly since credit scoring looks at this and determine how much you may be affected when applying for Auto & Mortgage loans.

Do you have to tell the CRA's to list them as only one pull when they are all for car loans? I had 12 pulls in 2 days for a car loan, and they're all showing up on the credit reports.

No, this is automated on the CRAs side once the KOB (kind of business) or PP Code is logged by the creditor the day the credit report was pulled. They take care of the rest on their end.

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A couple of thoughts here, as I just refinanced my Exporer and bought another car.

1. As KB9 said, pull all of your reports so you know what you are dealing with. I prefer to pull the reports directly from myfico.com so you can get an accurate FICO score.

2. Ask the dealership which CRA they pull.

3. Show that dealership your report (and FICO Score) and ask them where you stand before they pull a report.

4. If they and the banks pull Equifax, just pull your Equifax report a few days later and look at the pulls.. Call Equifax and dispute each one of them. Tell them that you didn't authorize the pulls, and they will disappear within a week.

Cas

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Need to understand that Myfico - is based off of the mortgage industry.

At this time there is no scores provided on the consumer side to reflect FICO / Auto Loans. Or CRAs version of Auto Loans model used. So if a dealership does pull a credit report & shows you the scores which they accessed don't be supprised should you see a difference between the two.

This is a complicated part here, and also Pale Rider is right, it is not a sure thing that your score would drop, it may even go up.

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No, not at all....

My wife had a car loan, and her score that was pulled was within a couple of points as well.

What's interesting is that I have removed nearly all of the negative items off of my report and the scores lately have barely moved. I'm convinced that what is holding it down is the high credit card utilization.

Today I just noticed that my BK7, from 9 years ago, just dropped off (Yeah!!!)... Did the score move? Nope! :) I was expecting to have to wait until next May for the BK7 to drop off of EQ. It’s still there on EX and TU, but it’s EQ that counts around here.

The next step is to attack the CC balances and get them down as soon as I can. Then it will easily go above 700 on EQ.

Cas

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See I think on your report - not having auto loans, then takes out what the auto models are looking for.

On you wifes report, it is hard to say why her score did not move much. How old was the auto loan she had on the credit report?

Now on the bankruptcy as with anything that old, the scores are no longer being affected for the scores to change upon removing stuff of that sort.

But it is nice to get a break earlier to just have them gone, sight unseen can get further for re-establishing better credit, plus once you have all evidance gone of the bankruptcy - then the time will be prime for calling the creditors to re-negotiate interest rates. Of course get them balances down first.

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and just as an aside, unless you have good enough credit to get a special factory interest rate (%0, etc), dont even futz with the linance (misspelling intentional) manager at the dealership.. go through your own bank or a credit union.. its the only way to get a fair deal and make sure that the dealership isnt adding a few points to the interest rate for themselves, and that they arent getting any kickbacks from any particular banks...

after being at the mercy of the dealerships finance department for 2 weeks, i opened an account at a credit union, and they approved me on the spot with in a half hour at %4.25 LOWER than what the dealership was quoting me...

Eddie

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I was driving around with all three reports I printed that morning and the dealers wouldn't look at them. I thought that pretty suspicious.

BTW, the one dealer who treated me with any kind of seriousness and was very businesslike was at a Saturn place. But then, I noticed their cars were a bit more expensive and also he was quoting me a super high interest rate (24%) with a $1500 deposit. So I guess you have to pay extra to be treated in a decent manner.

The other two dealers were real scumbags. Like they were doing us a BIG favor. When I had enough cash years ago, I would just buy a lower priced used car without financing. I've even had better luck from private owners.

How did the auto selling business get to be such an adversarial and often ludicrous (salemen dressed like clowns?) business?

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Just my 2 cents...All and I mean ALL car dealerships are crooks. I hate doing it but we need vehicles to drive. The whole process stinks....the salesman and finance mgr whisper back and forth to one another trying to get as much as they can out of you it is crazy. I think the govt should step in and regulate this evil empire....Bastards!! Whew...I feel better now.. :lol::lol:

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Just my 2 cents...All and I mean ALL car dealerships are crooks. I hate doing it but we need vehicles to drive. The whole process stinks....the salesman and finance mgr whisper back and forth to one another trying to get as much as they can out of you it is crazy. I think the govt should step in and regulate this evil empire....Bastards!! Whew...I feel better now.. :lol::lol:

Glad you got that off your chest LOL :lol:

And for the record, I agree! Once you signed the papers and give them your check they forget about you :x . The courtship and honeymoon are over...their check is in the bank and it's on to the next sucker.

I NEVER refer anyone to ANY dealership I have purchased a vehicle from because I don't want to hear, "Why didn't you tell me this guy was an a$$hole?" 8)

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