The Credit Report - Is it a Real Reflection of You?

The single most critical document used to determine your credit is your credit report. It's also the most abused source of information. Is your credit report an accurate reflection of you and your buying habits? More important, is it a true reflection of your past debt payment record?

With identity theft on the rise you may want to review your credit report every six months.

There are 3-4 major credit bureaus that businesses report your payment history to on a monthly basis. How your credit history is reported will make the difference between your getting a new or used car loan as well as at what interest rate. Your credit report determines if you are a very good or very poor credit risk. All that's needed to access this information is your social security number.

Some of the information listed on your credit report is: name of business that extended you credit, date opened, date closed, type account, terms, high amount loaned, balance, amount past due, payment profile, inquires from other businesses, ex-spouse accounts, judgments and dispute comments. As you can see if you don't know what's on your credit report you could be denied a car loan because of inaccurate information.

Within the volumes of information being sent to credit bureau's daily costly mistakes can be made. Computers make it very easy for auto dealers to access your credit report while you sit there or you're out on a test drive.

If you're refused a new or used car loan the lender is required to send you a letter of denial. This letter lists the name of the credit bureau(s) that provided your credit report. The salesperson will not and should not discuss the specific reasons for denial with you.

Under the Fair Credit Act you are entitled to a copy of your credit report. The report is free if you enclose a copy of the denial letter. You may also request a copy by calling the credit bureau and pay their fee.

Before going to purchase your new or used car get a copy of your credit report and review the information for accuracy. There is a dispute procedure outlined on the back of the report. You should review your credit report yearly.

It is not wise to visit several dealerships and let them run credit reports because numerous inquires are not looked upon favorably by lenders.

Questions to ask the salesperson: At what point do you run a credit report? If I give you a copy of my drivers license will you run a credit report? Do you run credit reports without written permission? What credit bureaus do you use?

Can you really use the Web to buy a car?

The internet has the most comprehensive collection of automobile information than any place in the world. You have instant access to practically every auto magazine, auto manufacturer, used car auctions, crash and safety information and auto dealers.

The only thing you can’t do is take a test drive.

The internet is an auto buyers dream come true if you’re the type that wants all the facts and figures before you go to buy. Let me walk you through a fact finding adventure for the car, truck, van or
minivan of your dreams.

You can start by going to the web site for Kelly Blue Book to get your dealer invoice and resale value. Then you’ll click to the National Institute of Transportation and Safety to review crash test results and other safety issues pertaining to your automobile. If you want to know how Consumer Report rates your automobile jump to it’s site and from there select your favorite car buff magazine to get it’s road test results.

You are now ready to pick up a brochure so just hop to the manufacture’s web site and read all about your dream car, with pictures, all in the privacy of your home or office. Have you noticed you haven’t been harassed by a salesperson?

Now you want to know the closet dealership to you. From the manufacturers site you will click on Dealer Locator and instantly get the dealership information.


If the dealer’s web site was properly designed you could search their new and used car inventory to find your car and get the dealers selling price or spec out your car and request the price. You found it, you like the price and you want to buy it. You’re at the moment of truth. Do you really want to visit the dealer? Just send an email and ask to have it delivered.


You can also complete a loan or auto lease application to get approved for financing from several lenders web sites or on the dealers.

As you can see you really can use the internet to buy your next dream car. But you still cannot test drive it.

Questions to ask the Cyber- salesperson via email: Will you deliver to me? Does this price include all costs except tax, tags and titling fees? How do we dispose of my trade?

Car Buying Services - Do they work?

                                                                            
Going one on one with a salesperson is a no win proposition for you. Salespeople don’t go one on one with you directly. They always have a sales manager and/or general manager available to help them close the sale. So, why shouldn’t you have some help to get you the best price?

                                                                             

There are numerous groups that assist car buyers with purchasing. They are categorized as buying services. Be careful! In some states buying services are illegal. The buying service uses the effect of representing large groups to get auto dealers to offer special discounted prices. Auto dealers are looking for an edge over their competition and will work with buying services to make extra monthly sales.

Most of your large discount stores offer auto buying services for it’s shoppers. So do banks, credit unions, department stores and shopping clubs just to name a few.

If you decide to join a buying service make sure that they can save you money on all the dealer’s models. Compare the price of the buying service with what you can negotiate on your own to test the buying services prices. All makes of cars, trucks, suvs, vans and mini vans should also be available to you at any time, not just during a special time of the year.

The theory with a buying service is they can go to auto dealers and negotiate a selling price with the dealer on behalf of it’s members. Each member is given some type of identification to present to the dealers. It identifies a designated person to see and the price the member should be quoted.

Some buying services will want a fee to help you. You should not have to pay a fee to join nor a fee to get a quote from the dealer. In some states if you pay a person or group a fee to assist you in buying a vehicle it’s considered brokering and that may be illegal. Check with your local motor vehicle administration for the laws in your area.

Being a part of a very large group can leverage your buying power with auto dealers to help save you money. The amount saved is determined by the number of real buyers in the group and the buying service’s negotiation expertise.

Online buying services  make it easy to get information and locate cars. The pretty much operate like all other buying services.

Questions to ask the salesperson: Do you work with any buying services? Which ones? What types of discounts will we get? What vehicles are not included? I’m not a member, but will you give me the same discount?

After Market - Do You Really Need This Protection?

Selling after market products, rust proofing, paint sealant and undercoating is a profit center at auto dealerships. They make it seem like no protective measures have been taken by the manufactures. Some dealers apply all these products to each new vehicle. It's used as a negotiation tool.

When was the last time you saw a commercial for rust proofing? Auto manufacturers treat and seal most metal parts during the auto assembly process. I've been told that introducing a secondary rust proofing process will induce rusting because the metal has been penetrated in the injection process; and, depending upon the uncontrolled environment in which the procedure is done, moisture can be trapped between the metal and the rust proofing product.

Paint sealant is an extraordinary product. You can easily maintain that new car finish for years if it is applied properly and reapplied when needed. Most minor scratches are not seen. The Teflon based paint sealant makes car cleaning a breeze and protects the car from the elements. You can wipe away bird droppings and road tar with very little effort. But, the real question is do you have to pay a dealer $895 or more when a $4.50 bottle and some of your time will do the same?

Undercoating has been marketed by dealers in the past as a cure for road noise. The product is sprayed over the undercarriage and has a sticky tar like appearance. Again, auto manufacturers do an excellent job in applying protective coatings and treat the metal during the assembly process. If undercoating is done in an uncontrolled environment moisture will be trapped and over time will cause damage.

After market products can be beneficial in maintaining the appearance of your new vehicle. But, dealers can apply all these products for a combined total of approximately $150 or less. It's in your best interest to read the owner's manual to find out what protective measures the manufacturer has taken, what and how metals were treated and what is the recommended method for upkeep.

Questions to ask the salesperson: Why did you apply the protective package to this vehicle? What protective measures have the manufacturer taken? May I see your application area? Does it really cost that much to apply these coatings?