I’m reviewing my credit inquires and realized that both the dealer and manufacturer (vwCredit) ran a credit inquiry on the same day prior to me signing the lease. I’m assuming the dealer ran the inquiry first to make sure I qualified for tier one rates. Is this typically how its done or could the dealer have just gone ahead and pass that information to the manufacturer without having to do another inquiry?
both Credit pills were hard pulls, but would affect you differently. The first one was to check your credit and the second one was to basically fund your contract.
I’m not sure how normal practice this is across the industry, but I’ve been noticing this more and more.
GMF has always done the same with me. Buying or leasing.
If pulls are done within a few days of each other, they don’t count as separate enquiries and so don’t affect your score more than just one pull
2 Likes
How much does this actually impact your score anyway? I thought it wasn’t major.
It’s not major…it’s usually a soft pull.
Actually both were hard pulls
It’s always a major pull when applying for final auto finance/lease.
It’s always a hard pull when approved for monetary disbursement and they fund the contract.
It usually impacts a few points. It’s when you do several inquiries over the course of a broad period that it starts to add up and bring down your score significantly.
That is how it has happened with my leases also so I would say yes, this is typically how it’s done.
What credit score will drop you into tier 2 when looking to lease or finance a car? And how much more would the monthly figure be?
The dealer is also covering themselves, making sure you are who you say you are, no funny business or fraud going on. They also don’t want to waste time on an approval if you are a roach.
Depends on allot of factors
Inquiries make up somewhere around 10% of your score. Unless you’re running on a wide variety of different types of inquiries (car loan vs. credit card vs. other loans) in a short period of time, the impact of the inquiries themselves is minimal. Another poster above is also correct that pulls for the same type of credit in short windows of time are viewed by the scoring algorithms as only a single inquiry.
This is 100% correct. Dealerships run it first, then we’ll submit it for approval to FS.