Getting financing runaround, help!!!!!

[oldmanrandy]

I am talking to about 5 different dealers about a purchase.
Each one has a different angle concerning financing.
But I have found out, each time someone checks your credit
you loose about four points off your score.
This happened to me two months ago with one dealer.
I was thinking I would go thru the financing first with a reputable bank
or leasing company, then it doesn't matter who I buy from the financing
is all taken care of.
The question is, since financing a Class 8 is only done thru very few
institutions and I am new to all this could I get some names of good
people that will work with you.
Thanks

[Fredog]

I am talking to about 5 different dealers about a purchase.
Each one has a different angle concerning financing.
But I have found out, each time someone checks your credit
you loose about four points off your score.
This happened to me two months ago with one dealer.
I was thinking I would go thru the financing first with a reputable bank
or leasing company, then it doesn't matter who I buy from the financing
is all taken care of.
The question is, since financing a Class 8 is only done thru very few
institutions and I am new to all this could I get some names of good
people that will work with you.
Thanks

according to a financial expert who was on the radio. as long as the inquiries are within 30 days of each other, they dont hurt your score

[oldmanrandy]

Have not heard that one before, but could be.
But I still think that if I have the financing then
I can use it as a tool to get a better price because
I will not be tied to one dealer just because of his
financing.

[Fredog]

Have not heard that one before, but could be.
But I still think that if I have the financing then
I can use it as a tool to get a better price because
I will not be tied to one dealer just because of his
financing.

I'm sure you are right on that one, on the other hand some dealers get an incentive to finance you and might give you a better deal. maybe talk to your bank and ask their advice. or ask Fozzy. he knows everything. just kidding Fozzy

[GMAN]

I was also told the same thing about people checking your credit within a short time period. From personal experience, I can tell you that is not necessarily the truth. Your best bet will be from your bank. Many banks don't lend money for class 8 trucks, but if you have a good relationship with your banker they can sometimes get a loan through for you. Navastar, Mercedes and Paccar are probably the three most commonly used. Each is owned by a major truck manufacturer. I believe GE Credit also does trucks. There are secondary lenders but I don't have a list of them handy. Much of it will depend on your personal credit and driving experience. I spoke with one of these a few years ago and was told that a credit score of 650 or better is needed. I have since spoken with one truck dealer who informed me that he got one guy through with bad credit but who paid for his previous truck purchases as agreed. Before committing to any company I suggest having a lease agreement in hand. Most will likely require that any way, especially for a new buyer. It would be best to have your own financing prior to going to a dealer. Most dealers will move you to a lender who will pay them the highest commission or kickback for sending them the business. If you know your credit score, you may want to approach some lenders to feel them out without them pulling a credit report on you. There is no need to have several people pull your credit and lower your score. Good luck.

[oldmanrandy]

Thanks for the replies.
The Big names you mentioned GMan will be the ones I start with, I think thoses with experience and size are propably doing something right.
I am new to Kentucky so I don't have a long or business relationship with my bank. They also stated they don't touch the big trucks.
My score is better than the 650, but your right, like the last dealer, said we can work with you then come back and said because I am a newbie the rate would have to be 17%, I walked away. Don't want to keep doing that waste of time.
More bank names if anyone has examples of there own financing
experiences would be appreciated.

[Bigmon]

You should also see how much difference the payment is for 12% and 17%. On a low priced truck it might only be $20-30 a month. You can also refi it in 6 months for a better rate too.

[no_worries]

Lots of finance companies are suddenly becoming fleet owners. Anyone that doesn't have an established history is going to pay a premium right now.

[GMAN]

Lenders do place a lot of emphasis on experience along with your credit history. If you want to continue with the persuit of your truck, I would be prepared to pay a premium on the interest, even with good credit. Sometimes a dealer will underwrite your contract to get the deal done. In other words, they basically co-sign the note and agree to take the truck back should you default on the loan. If the dealer does this for you be prepared to take a hit on the interest rate and you may be asked for a higher down payment. Some want you to buy a newer truck to get it financed. Lenders typically look for a down payment of from 10-30%. It would benefit you to get a year or two experience first. It will make a lot of difference in the financing rate. By the way, most auto or truck loans are set up to pay the bulk of the interest during the first 1/3 of the loan. So, most of what you pay the first year or so, depending on the term, will be interest.

[merrick4]

There is truth to the fact that you are allowed to "shop" around without every pull hitting your credit. For instance I believe it's two weeks for mortgages. That is you can have as many mortgage institutions pull your credit for two weeks as you want and only one will show up on your credit. I'm not sure of the time frame for autos but same concept applies.

I can't say for sure about class 8 trucks, but I just did it with two different companies (DaimlerChrysler and I forget the other one off hand) and I checked my credit and only one pull was made. Actually both pulled it but only one showed up on each of the credit bureaus.