Checking your credit to order an 05?

I just ordered my 05 this week and I didn't have to put down a single dime or go through a credit check at this point. I'm sure it varies from dealer to dealer but they probably figure even if we bail on the car at the last minute they'll have no trouble selling it within days of it arriving on the lot. Once the car comes in we'll put down our deposit and only then deal with a loan and credit check through whomever will be financing the remainder.

I've never heard of a dealer checking your credit to place an order. The only time I've seen it done is when you are qualifying for the loan.

I don't know, it sounds legit. to me. If I were a dealer and someone wanted to order a car, especially high demand/low supply car, I would want a deposit in good faith and I would check credit. Why?...just seems like a sound business practice. That said, I agree they can obviously sell this car if financing fell through and the deal couldn't be done. I ordered mine and no credit check was done that I'm aware of, but they asked for a $1000.00 deposit. I didn't even care to negotiate that because I am getting the car I want. I would have given them more since I will be putting about 50% down on the car anyway. Also, if you think about it, it is probably BETTER for you if you DO get your credit approved and put a good down payment/deposit on the car: You will then have more leverage to insist that they prioritize your order and get you the car in a timely fashion IMO. Otherwise, what incentive do they have to get your car ordered in a hurry and check on it diligently, updating you and so forth. I ordered mine Oct.22 and it is already built with delivery expected end of next week. That is pretty darn fast from what I have been seeing on these and other Mustang forums. However, If you are in the mortgage process you might want to wait-you are correct that a credit check can only hurt you right now until AFTER you close on the mortgage. Good luck with the home purchase.....new home/new car....I bet your wife is a hottie too

If they are going to check your credit now, then tell them they do NOT need to check your credit when the car arrives! Every time a dealer, insurance, loans etc...checks your credit, your rating drops. I hears it is 5 points each time. Be Careful on the amount of times your credit is checked!!!

ShelbyMan said:

If they are going to check your credit now, then tell them they do NOT need to check your credit when the car arrives! Every time a dealer, insurance, loans etc...checks your credit, your rating drops. I hears it is 5 points each time. Be Careful on the amount of times your credit is checked!!!

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No, that's just not true. It used to be, but now the system recognizes that people shop for credit on cars. And just because your credit is checked, even if you get the loan and buy the car, doesn't automatically mean your score will drop. This guy just needs to be aware of his income to debt ratio: If he makes $200,000 a year and is buying a $200,000 home, a new car isn't going to mean a thing to the underwriter. However, if he makes $50,000 a year and is buying a $250,000 home, the car will have to wait until AFTER he buys the house.

r22tech said:

No, that's just not true. It used to be, but now the system recognizes that people shop for credit on cars. And just because your credit is checked, even if you get the loan and buy the car, doesn't automatically mean your score will drop. This guy just needs to be aware of his income to debt ratio: If he makes $200,000 a year and is buying a $200,000 home, a new car isn't going to mean a thing to the underwriter. However, if he makes $50,000 a year and is buying a $250,000 home, the car will have to wait until AFTER he buys the house.

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I am an underwriter, I finance autos. Debt to Income ratio is valid, that is your debt that shows as active on the bureau (all minimum payments) you add the amount up, add 100 for insurance, ~15% for rent (if no mortgage shows on the bureau), and that is your ratio, most finance companies max out at 50-60% depending on your income and your credit. Also, there is payment to income ratio, which is another factor, basically it will toss out an application if someone has no debt, but only makes 1600 a month or so. Taking multiple hits for inquiries does effect your score, but there are different kinds of hits. The little pre-approvals you get in the mail do almost nothing, however shopping around for an auto DOES in fact lower your score, it isnt 5 points a hit, but it can effect your score for the worse if there is alot of inquiries, some companies dont care about the score drop, they might toss you out just for too many inquiries. Revolving credit is a big part of getting approved, you want a small balance across all cards, maxed out cards are bad, and empty cards do nothing for you, you want to show that you are capable of making monthly payments in a timely fashion. Remember: credit history gets your approval, score gets your interest rate. 525-600 credit scores should expect a 12-25% interest rate, 600-700 should expect 8-12%, 700-880 should expect 8% and down.


As far as buying a house, that wont show on the bureau until you start making payments. Buying the car will hurt your mortgage, not the other way around.

Dealerships are absolutely freaking criminals, every single one of them, I talk to hundreds of them a day, I see every single number they run and exactly how the game is played, so don't think hes a nice guy. 500 down is probably because they did run your credit, and the bank told them 500 down minimum. Alot of banks require a minimum down payment depending on your credit , your score, and your employment/residence histories. The dealership has to meet the banks criteria, however they will overcharge on practically everything just to make a buck.

Dealerships make money like this:
Sales Markup - what they pay for the car, what they sell it for.
Finance - bank approves 9% interest, congratulations mr. smith, your approved at a 12% interest rate (they make a percentage of the loan maturity split immediantly for this)
Service ( oil changes, shop fees, parts, etc.)
Trade ins - sure we'll take your 2003 mustang and pay it off for you, so you can start clean on your new car (payoff is 4800, they resell 3 days later for 17k)

They are money MACHINES, you have no idea how much money these dealerships actually make net.

I think it's BULL if they wanna run a credit check to order a car,,, I ordered mine back in March, without downpayment nor credit check,,,, simpy because my dealer was thinking that IF for some reason I wouldnt want the car or get approved, he could EASILY sell it to someone else,,
The only time they should get info for your credit check, should be once you have decided you want the vehicle and negotiated yourself to a price you both agree on, right before singing buyers form.

I NEVER put a down payment on a car. I also never go to the dealership without first getting financing. It is a good leverage tool (I can only spend $XX,XXX so that is my limit). Also, they do not have the upper hand. Nine times out of ten, the dealership offers me a better rate to get my business. I have not paid more than 3.9% in the last 7-8 years (a couple of times I got 0%).

Another thing - it is ILLEGAL (actually a federal offense) for a dealership to run your credit without your consent. if they take your license to "make a copy for insurance purposes" and run your credit without your WRITTEN consent, then they are breaking the law. Do not let them run your credit just to drive the car. Tell them the you can go right down the road and not get that kind of hassle. If they are that pushy now, just imagine how bad it will be when they send you to the "finance office."

gilmoujr said:

I NEVER put a down payment on a car. I also never go to the dealership without first getting financing. It is a good leverage tool (I can only spend $XX,XXX so that is my limit). Also, they do not have the upper hand. Nine times out of ten, the dealership offers me a better rate to get my business. I have not paid more than 3.9% in the last 7-8 years (a couple of times I got 0%).

Another thing - it is ILLEGAL (actually a federal offense) for a dealership to run your credit without your consent. if they take your license to "make a copy for insurance purposes" and run your credit without your WRITTEN consent, then they are breaking the law. Do not let them run your credit just to drive the car. Tell them the you can go right down the road and not get that kind of hassle. If they are that pushy now, just imagine how bad it will be when they send you to the "finance office."

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They cant run your credit without a SSN#, a drivers license won't help them.

I had to deposit 1000 buckaroos and let them check my credit before I could order the GT I was looking at. Although I didn't really mind it being that much, it's still a thousand dollars I won't see in action until the car arrives.

JadeFalcon said:

They cant run your credit without a SSN#, a drivers license won't help them.

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In Ohio, it is on your license - unless you read the fine print that you can OPT OUT.

Two things come to mine.

If one is requesting some special financing deal ( 0.0%?), remember that disclaimer in fine print that mentions something along the lines of that only some highly qualified buyers are eligible. I am sure that the dealer needs to run a credit check to see if the buyer is eligible before writing that into the deal.

Many, if not most, dealers have "special" financing of their own. They get a kick back for ever buyer they successfully get to finance through their "partner" (bank, CU, loan shark, whatever). It would not surprise me if they are doing credit checks to see if a buyer is even eligible before twisting their arm to go with their "partner" for the buyer's auto financing.