Credit Application but paying cash and using own credit union
 

Hey guys,

This is my first time buying a new car so I'm not sure how this works.

I got a quote for a 2011 manual gun metallic 370Z w/ sport package for $34k OTD.

I came in to their showroom around 30 mins before they closed, but they weren't in a rush to lock up. I chatted with them for a bit and I took the Z that I wanted out for a test drive.

I kept my enthusiasm to myself as the salesperson let me take it on the freeway. So it was all great and I wanted to buy.

So I sit down with the sales manager and we start talking about price. We agreed on $34k OTD. Since it was late and their finance dept. closed, they gave me credit application and asked me to sign it so they can create a "folder" for me. They also said it basically "locks-in" the car for you and they'll take it off the lot. It sounded sketchy and he said all CA dealers do it, it's required by law.

My question is, even though I'm paying with cash and financing w/ my own credit union, do I still have to fill out this form?

That is real interesting... I'm not sure if its really a law but I've heard of dealerships "Gaming" with credit apps to boosts their sales numbers regardless of what the customer wants and has set up already. Perhaps someone with more knowledge can chime in?

I wounldnt sign a credit app unless I needed credit.

Thanks guys.

I'm not signing it.

there's a part on the application that reads:

A. I am not interested in securing credit with their Financial Institution.
B. I certainly do not want them to do a credit pull.

And if they give you a hard time, walk.
I know its hard but there are plenty of good dealers and Zs out there.

That sounds extremely bogus. Even in Cali, I can't see there being a law requiring a credit app be filled out. Your credit rating and history is none of their d*** business. If you lay the money on the table, that should be their only concern.
They're trying to pad their numbers.
If you really want to play hardball, I'd find out if their statement is true or not about being required to fill out an application. If it's not, I'd call them out on it.

You are paying with funds from your own credit union, it's pointless and stupid to have the dealer run your credit and it's unnecessary.

It's quite simple actually. The dealer gets a kickback from the lender. So, it's in the dealer's best interest to get you to finance through one of the banks they deal with. You walked in with your own financing and said "No thanks, I have my own financing lined up already." The dealer stands to lose a couple hundred bucks in kickback if they just say "Oh, OK, never mind on the financing then." What they want to do is pull your credit and see if they can get you a better rate than what you currently have secured. Too bad they didn't just tell you the truth instead of acting all shady.

Every time I buy a car I line up my own financing first and tell the dealer "No thanks I have my own....Unless of course you can beat the X percent I have lined up." I usually throw a number out to them that is 1% lower than what I actually have. I have yet to have them NOT be able to beat it. For example, when I bought my Z I lined up 4.5% through USAA. I told the dealer I had 3.5% and that I would be shocked if they could beat that. Sure enough, they came back with 2.9%. Done deal.

As far as they are concerned you are paying cash. you have absolutely no need to speak with anyone from their financing department. there must have been some kind of misunderstanding. unless the price they quoted you, they were planning on making more money off the finanicing deal to compensate. youll find that out when you deny the credit app and if they back off the price

Same thing happened to me. They said it was for some terrorist check list. But basically they want to match or beat the interest rate of your bank. Just let them run it. They ended up matching my banks rate so I let them make some money off that.

I agree, you did right not to sign. You could have told him, "If you sell this before I come back, then it's no longer your problem, and I can still shop for another." In fact, I have told car salesmen something to that effect.

Technically yes, it will fall under the Red Flag Rules, Jan. 1st.

The government is great at making my job harder.

And now they are coming up with another one called "Risk Base Pricing"

So what is risk base pricing going to be?

It a nut shell, I have to give every consumer a form that stats if they have good credit they will get a good rate, but it they have bad credit they will have a higher interest rate. That is now another job we have to do and another forum the consumer will have to sign.

That sounds like a complete and total f*cking waste. How would a consumer not already know that going in or expect anything different? I'm not b*tching at you, buddy. Just seems like a waste of trees and ink.