My Mini dealer wants me to fill out a credit app even though I already have my own financing in place. They said it's required and is part of registration. Is this true? What has your experience been?

 

Sounds fishy to me.

 

Registration is a state thing, what state? You're probably going to be safest checking with your local DMV/DOT. Seems like a credit app would have a lot of extra personal info that isn't needed for registration in most states in my opinion.

 

Seems strange to me. Ask them if they sell the info to internet advertisers.

Kevin

 

the ma is blowing hot air. it is not required. the ma probably wants to know whether you can afford the MINI. if you order your MINI, then it is understandable for them to ask for it. but, you don't have to give it to them.

 

They probably just want an opportunity to beat any rate you have to add additional revenue to the sale. Often, they are given discounted rates due to volume and can beat your rate and make money for themselves at the same time. It is not required though.

 

I second what HRM is suggesting...

 

just tell them the interest rate you are getting from your financer and ask if they can beat it. they will tell you they need a credit app. to determine if they can beat the rate and its up to you whether you want to give it to them. I can assureyou they won't pass up a sale if you refuse to fill out a credit app and it is not required.

 

I don't mind giving them my info for loan purposes - if they can beat my current rate, great. I just wish they weren't all sneaky about it. I believe you're allowed multiple inquiries on your credit within a certain time frame (2 weeks or something) without it affecting your rating. So maybe I'll see what they can do for me...

 

if you know your credit score then don't give them your credit info, just give them the score and ask them if they can beat your interest rate assuming your score is correct. I would hesitate giving anyone personal info. that they will use or sell.

 

Aerodynamics, I was under the impression that every 'hard' credit inquiry affected your credit score negatively.

 

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If you have your credit report with a credit score from one of the bureau's take that. They are not going to match or beat any rate just because you said so. They will not sell it or use it other than to get you financed. As for your "info" its already out there and anyone can access it.

 

yes, your 'info' is really easily accessible. i know some guys in real estate industry that can just pull up your private info with just a name and address - very disconcerting.

 

I had to fill out only the top portion (name, address). The way it was explained to me was, as I had my own financing the dealer treated it as a 'cash' transaction, and with cash transactions over certain $ amounts, there are Federal guidelines (call it part of the Patriot Act, I suppose) that required them to take your name, address, etc. The basic information.

Now, one dealer offered to try to get me a better rate. I declined, but they did it anyway. I know they did because within 4 days of purchasing the car, I received no less than 4 responses from various lenders.

Just read the fine print. If it says anything you don't agree with then let them know it, and see if you can strike out the offending parts. Then get them to initial the strikeouts.

My .02.

 

I agree.

 

I bought a Camry a few years ago. Had Capital One financing. They made me fill out a credit ap anyway, said the Patriot Act required it. I tried to refuse, they would not sell me the car unless I filled out the ap! Unfortunately my Honda had been stolen and I had to have a car that day or I would have walked out.

 

I just bought my MINI last month, and while I needed to ID myself extensively, I was not required to fill out a financing application.

 

I wrote a check for my first MINI back in 2005 and the dealer still wanted me to fill out an app "for the file." I don't know the legalities about it, i.e. Patriot Act, but I think I can clear out some of the mis-information here.
First off, the credit bureaus do allow for multiple inquiries in a short time frame for the same thing, such as getting a car loan. Your score is not dinged by such an action.
Secondly, posters are right in that the dealer WILL almost surely send you some unsolicited offers from that info, as will some of their affiliatates, but there's nothing in your credit app that you haven't already given the dealer in just filling out the paperwork for buying the car period. If you're really paranoid, ask to see the dealer's privacy policies in advance of giving them any info, they will probably do it but think you're nuts.
Last but not least, for whatever reason, it may just be the dealer's policy that you have to fill out a credit app, and they do have that right. Your right is to walk away. I hear people here all the time acting like the typical dealer will break their rules to make "that" sale and it doesn't always work that way. I've bought lots of cars in my life, and although most of the deals worked out to both the dealer's and my satisfaction, I have had a couple fall through because neither one of us would budge. My advice to the OP would be either fill out the app, or find another dealer.

 

Just thinking.... do dealers get a "finders fee" for every loan app they send over to their bank, whether or not that app yields an actual loan?

I remember the cute young girls standing at the entrance to a dept store, attempting to get people to fill out a credit app, and they got $1 for each one regardless if the app later gets approved or not.

 

I have read the same thing. My loan went thru last week so if they are pulling for finance purposes I shouldn't get dinged. If so, I'll send the app just to see if they can beat my rate.

 

When I bought my Clubman 2 years ago, I had already arranged financing thru my bank that I thought was a good rate. I showed up to pick up the car with the bank check in my pocket, and the finance manager asked if they had checked on financing for me. I said no, my bank has a pretty good rate for me.His answer was let me see what we can do. He came up with a loan about 1.5% less than the bank deal, so I took it. Walked into my bank the next day, gave them back their check , and payed one day's interest.
By the way, it was not MINI Financial, it was thru a local credit union that I had never dealt with and they approved me within about 15 minutes, sitting at the dealer, not even at the CU.
My guess is they just want a chance to earn your business, but I doubt that it is "required".
John

 

When credit bureaus look at inquiries they are known to lump together similar inquiries in a certain time frame as one combined inquiry for score purposes. The only time multiple inquiries adversely affect your score is if those inquiries result in TDs or "turn downs". I'm speaking from 3 years car industry experience. If your credit is good, there's no serious harm in seeing if the dealer can beat your rate (except getting junk mail eventually down the road)...

As for giving your MS the app, if it's a credit app (i belive) it would only be necessary for approval to run credit. Anything else is bunk. Unless the salesperson is simply asking for your DOB and SSN which are required fields in a order to register the vehicle (for any state I've experienced), if they have a signed app, they're going to run your credit.

Bottom line: if you sign at the bottom of a credit app you are giving the dealer legal right to send your information to banks. Hope this helps.

 

Correct.

Incorrect. Credit applications include information about income and mortgage/rent amounts, whereas normal purchase orders (in cash scenarios) do not.

Also correct.

 

Except that I haven't filled in any of that info on a credit app in years. I give them my name/address/SSN along with permission to run credit and that's been enough info.

 

After reading this thread, my manager at work just bought a brand new car (not a MINI). Yea, it has been years (decades?) since he last bought a car.

He was really taken back by all the personal info, like his SS number, they insisted was required. He tried to refuse, and pretend to walk out. However, the dealer made it clear that he would need to, regrettably, walk out, because they cannot wave those government ID requirements.

Possibly, filling out an application form for credit is just the simple way of collecting all that required ID info. And the form isn't used for financing purposes, but used to transcribe all the buyer's ID info into the government's verification database.