Hoovey689

iTrader: (16)

Yup it happens. On several occasions we've had to report a deal to the local PD and have a collection agency search for the guy. This last instance, the manager and I got a call that the guy was in custody after assaulting a collection officer and fleeing. We arrived to find him in cuffs and when we repo'd the car (2014 IS) it was trashed inside, garbage everywhere, childs car seat, and some beer bottles on the floor

mcomer

Everyone on this thread seems to have it correct, it's an ID check not a Credit Check.

A related comment on the original question has to do with the Capitol One "check". What is being presented to the dealer is really a "draft". Subtle difference to the consumer but it is somewhat more difficult and time consuming to get funded than a personal or Cashier's Check.

tex2670

I'm not sure most people are aware of this point--each request for credit reports, especially for something like a car purchase, can negatively affect your credit rating. Someone going in to buy a car with cash (maybe buying a second car moving out to the suburbs when buying a house), and gets "assurances" from the car dealer that it's "routine", then a few days before their home closing, the mortgage lender does a follow up credit check and sees an inquiry from a car dealer--not a good thing. The car dealer doesn't give a damn about this.

rominl

iTrader: (4)

yup, totally agreed. definitely not trying to make this casual and "not affecting me" at all. planning and understanding are very important

SW17LS

And being in the real estate business myself I can tell you this stuff does happen, and it happens a more than you'd think.

Nowadays especially any inquiry will require a written statement from you and the entity that submitted the inquiry stating the purpose of the inquiry, and that no new credit was extended or established as a result of that inquiry. Getting the letter from you is easy...getting it from the entity that pulled the credit takes time. Then your loan has to go back through underwriting which depending on the lender might take 2 hours...or 2 weeks.

Since in the process of your mortgage loan the final credit refresh happens right before settlement, this can and will delay your settlement. Depending on the situation that can be a very expensive delay.

Even more troubling can be the change in score. Its only a couple points, 1-5 depending on your overall credit profile. BUT...nowadays interest rates are tiered very high. If you have say a 781 and it reduces it to a 779...you could wind up loosing your rate. Its no longer the case that everyone over 700 or 720 gets top rates. I've seen lenders who's top tier is 800.

So...don't let anybody pull your credit unless you have to...and if you're in the middle of buying a house or refi-ing...don't period.

You are so right that dealers don't care. I had this discussion with a know-it-all finance guy when we bought the Jeep, he was saying how people tell him all the time how they can't buy a car because their mortgage loan is in process to buy their new house and he tells them "Oh as long as the payment is similar it will be fine". I literally put my hand up and said "Stop" and set him straight.

FrankReynoldsCPA

My dealer ran my credit probably 6 times when i bought my car.

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mmarshall

Actually, that's a good point...and something that got past me earlier which I, of course, knew about, but had forgotten in the meantime. But a stop payment on a check isn't necessarily a free lunch.....banks typically charge around $35 or so (and some tedious paperwork) for a stop-payment action. Of course, IMO, only an idiot would try and do a stop payment on a Certified Check...he would essentially be paying two fees for nothing (one for the Certified Check itself; the other to stop it). Not only the dealership but also the bank would think he was nuts. That's the kind of reasoning you usually only see in big-city governments.

SW17LS

A $35 fee charged to an account which would be bogus to begin with. Remember...we're talking about people who would perpetuate fraud here. Someone doesn't decide not to steal a $50,000 car because of a $35 stop payment fee they would have no intention of paying either LOL

I can stop payment on checks online. No paperwork.

Stopping payment on a certified check is MUCH harder. We're not talking about that, we're talking about a personal check.

I can only assume this is supposed to be in jest...I would hope you would realize that people who would commit fraud to steal a car are not concerned with the cost of checks and stopping payment on checks...

mmarshall

Yes, that is true, but on the other hand, fees or not, someone involved in fraud would want as few traceable actions involved as possible, in case the police, private detectives, or even the FBI gets involved....especially with the 10K cash-reporting requirement.

SW17LS

Well then you should become the GM of the dealership and set their policies.

All you have to do is look at Hoovey's post to see these things DO happen. Someone asked why the dealer wanted to check their credit if they were paying by check and we responded.

mmarshall

Have you have ever watched the Tru-TV shows on auto towing/repo'ing (Lizard Lick Towing, Operation Repo, and South Beach Tow)? Those shows, though obviously scripted and sometimes involving acted-out sequences, DO give you an idea of the things (even involving violence) that people will sometimes resort to when they have neglected their monthly payments and it comes time to turn over those car keys.

Hoovey689

iTrader: (16)

I've heard of them, can't say I watch them or too much tv for that matter. But I get the idea, and from our own experiences dealing with shady customers and repo services. But its true this stuff does happen on the regular otherwise we wouldn't need such services.

mmarshall

LMAO. I wouldn't want to be owner or GM of a dealership. Too many of them insult human intelligence in TV ads. I laugh each time I watch that nonsense...if I'm not already tired of the same ad, over and over.

Of course they happen. I wasn't trying to say otherwise. I think you may have misinterpreted some of my earlier posts. The world is full of crooks of all shapes, sizes, and incomes. Unfortunately, those crooks have made it (sometimes) harder for honest people by requiring buisnesses to make deal-making that much more difficult in added paperwork/verification...which is this thread topic.

mmarshall

I hope you have never had to deal with one of the really bonko ones personally. Some people get more desperate trying to stop a car repo than they would an actual foreclosure on their house, which would be far more important to their lives and families. And, of course, on the other hand, some people who have lost their homes end up living in their vehicle.

lamar411

Why so many?