“No Credit Application Refused”

We’ve all seen those advertisements that promise auto financing for everyone. What you don’t see is the real truth behind these ads. No auto dealer is ever going to “refuse” a credit application, there’s a big difference between accepting and approving a credit application.

It might surprise you to learn that the auto dealer’s most profitable customers are usually those with “sub-prime” credit, and they stand a better chance of maximizing that profit if they can control the finance process. The “credit challenged” advertiser specializes in buyers with perceived or real, credit difficulties and auto dealers are experts at making consumers feel credit challenged, even when they’re not.

Dealers hate giving up the control they work so hard for and aren’t likely to tell you of more favorable, outside (indirect) finance options, and for a number of reasons. The biggest reason being; outside financing eliminates the finance process as a major source of dealer profit.

Dealers who advertise for credit challenged consumers are specifically equipped to take advantage of this niche and will have inventory and sales staff trained to capitalize on that consumer. If a dealer’s primary advertising message is directed at those with credit difficulties, expect that dealer to be very adept at taking advantage of that market.

If you have a television set, then you’ve undoubtedly seen car ads and infomercials directed at the credit challenged consumer. We’ve all seen auto dealers make this statement:

“We guarantee financing to anyone the law allows”

The only law I’m aware of deals with the age of consent. (You have to be 18 or legally emancipated to finance an auto) These ads promise low down payments, low monthly payments and approvals for all. You see testimonials from happy customers, telling you that they have the worst credit ever (almost always paid actors) and showing off their dream car. You hear stupid statements like, “no credit application refused”. Why would anyone “refuse” a credit application? The truth is, they wouldn’t and don’t.

Lenders DO NOT advertise this way! What you’re really seeing, in most cases, is produced and paid for by a local auto dealer or group. The rest are paid for by companies whose only intent is to sell the “lead” (you and your information) to dealers in your market area. These ads aren’t meant to get you approved, they’re meant to get you into a dealership. There’s very little likelihood that responding to one of these ads will result in anything more than a phone call from a local dealers sales staff.

Once at the dealership, you’ll be treated just as if you had never seen the ad and had just walked into the dealership. Most salespeople will tell you whatever you want to hear to get you into the dealership. Lenders won’t consider, or approve, unsigned applications and dealers aren’t allowed to check your credit without signed consent.

Ignore this type of advertising and trust your better judgment. My book, The Insider’s Secrets, will educate and prepare you to buy and finance a vehicle without having to put up with any of these deceptive tactics. n