Don't Get Taken Every Time

You say that "car dealers will deliberately lower your credit rating".

How exactly do they do this? Do they just tell you it's lower than it really is? Or are you suggesting they provide false data to the credit reporting agencies to actually change the score???

-Vikki

 

Let me guess, they're all run by the Illuminati in their secret bunkers in Area 51, right?

 

Yes, there are plenty of slimy car dealers, and all local TV news outlets are heavily dependent on car advertising.

OTOH, people who borrow money to buy new cars are usually robbing themselves.

 

<div class='quotetop'>QUOTE(richard schumacher @ Nov 14 2007, 11:03 AM) [snapback]539436[/snapback]</div>

Oh so true.... as if most vehicle's rapid depreciation isn't enough you borrow money and end up paying close to 1 1/2 times the original vehicle cost due to finance charges (interest).

Speaking of rapid depreciation, we had a 2003 Acura MDX Touring with Navi, Trailer towing package, etc. It cost us around $42,000 in February 2003. We took out an "equity loan" for it at around 5%+ but were lucky enough to pay it off within the first year after purchase. We traded (May '07) this "perfect condition" vehicle, no dents, dings, rust, flawless.... with four brand new Michelin tires, brand new battery, new Brembo ventilated rotors, ceramic brake pads, etc. and less than 52K miles. The Toyota Dealer (Tampa) gave us $19,500 "trade-in" for the MDX................. ouch !!!!!!!!!!!!!!

 

<div class='quotetop'>QUOTE(FloridaWen @ Nov 19 2007, 05:25 AM) [snapback]541501[/snapback]</div>

Well, the Toyota dealer does need to make some money on selling the car. With pre-owned, there are no incentives (holdback, promotional, etc.) from the manufacturer, so the car has to stand on its own. Depending on where the market for the car is at in your area, Kelly Blue Book may be a total fiction. $19,500 may have been the most recent price paid at auction for a MDX. Auction price is what the dealer can use to assess risk on the resell - if they can't move the car, they can sell it at auction.

<div class='quotetop'>QUOTE(Miss_Taz @ Nov 14 2007, 06:52 AM) [snapback]539396[/snapback]</div>

One way that can be used is to hit the credit report a bunch of times in a row. That will drop the credit score that everyone uses to determine 'credit-worthiness'. Each hit costs a fee, so the tactic is not free; and, depending on the state law, such a tactic can be illegal.

 

<div class='quotetop'>QUOTE(apriusfan @ Nov 19 2007, 10:52 PM) [snapback]541792[/snapback]</div>

That's the key word "auction" !! I kept quoting to the Toyota Dealer that Kelly Blue is at $21K in "excellent" cond. (as ours was) and the Toyota Dealer kept saying "auction"............. what he could get an MDX like ours at an auto auction. It really didn't matter our MDX was really close to "showroom condition" with all the bells and whistles and many NEW items. I guess we are lucky as he did give us OVER $1500 off the new '07 Prius and it wasn't even in stock (had to wait for an incoming vehicle coming to Port) and we did get the "ToyoGuard" package omitted and saved some more $$ there !! Not complainin', just trying to make a point of rapid depreciation in a high end vehicle like an Acura MDX. I'm guessin' the 19MPG and PREMIUM FUEL ONLY requirements made the MDX a less than favorable vehicle, although we saw that it sold off the used vehicle lot in less than four weeks from day of trade-in !!

 

<div class='quotetop'>QUOTE(richard schumacher @ Nov 14 2007, 11:03 AM) [snapback]539436[/snapback]</div>

Yes, I agree 100%. Unless borrowing the money doesn't cost you anything (a 0.00% APR), I feel like it's always better to pay cash.

 

well, not all of us can afford to pay cash for an item like a car.

as far as financing goes, i always heard that they can't run your credit report without your SSN. but you do have to let them see your driver's license, and i wonder if they can't manage with that info alone.

the higher your credit rating, the easier it is to take it down a few points too.

 

<div class='quotetop'>QUOTE(galaxee @ Nov 21 2007, 06:32 PM) [snapback]542751[/snapback]</div>

The SSN is required for the credit report/rating. I imagine the request for the driver's license is to confirm the name on the SSN is really 'you'. Although I wonder how they would handle a married name being different from the name on the SSN....

 

I think I'd take up to, perhaps, a 3.99%APR over four years, so it isn't black and white for me, either. I just want to know, at least in theory, that I could invest the money and maybe equal or beat the interest rate!


My parents were real hardliners about paying cash for everything (if at all possible), and how it's important to figure in the cost of not doing so, and I guess that's where I got it from.

 

Credit checks need an SSN because all the reporting agencies are
still using SSNs as an indexing system like they're NOT SUPPOSED TO.
Steer clear of the whole mess if possible; your privacy will have a
much easier time of it.
.
_H*