Financing a New Car with only 1 hard inquiry

Jan 1, 2020

Unless you are an urban dweller, a vehicle is a necessity.

Buying a vehicle can be a stressful, daunting experience that times seems magical and mysterious. The process doesn't have to be mysterious if you plan?

First, if your credit is less than acceptable, and you can wait to improve your credit, by all means, wait and improve your credit first. You will be better off in the long run.

If you have really terrible credit, not is all lost, just means that you be paying a higher interest rate AND possibly a high down payment. Try to avoid the payday lender dealerships, if possible. Most dealerships have a special financing department that will work with you to get your in a car that you can afford. Keep mind, when you use dealerships to search for financing, your credit score will take a hit from the numerous hard inquiries on your report.

If your FICO Auto score is above 650, you options are improving and you can use tips mentioned here.

You want to determine what you can afford, that is your comfort zone for the extra loan payment plus insurance premium increase payment? Only you know this value and you search for auto financing calculators and play with the numbers.

Once you have identified your targeted puchase price from using the auto financing calculators, you can perform a preliminary search of vehicles. If you know the make, you can visit the manufacturer's website directly, or just perform a web search using the search terms of "car below {purchase price}" as a starting point.

If you have not found any vehicles or dislike the search results, than you may wish to revaluate your comfort zone or wait for a lifestyle improvement?

Once you have identified a make and model (or a few), you then want to perform a preliminary check on your finance options by locating lenders that perform a soft pull on your credit report, as you want to avoid the hard inquiries as this does affect your credit score. You can perform a search using the search terms "auto financing soft pull" or "auto financing prequalification." When you reach each website, check to the validity of the site to ensure it is not a scam before completing any forms or submitting any personal information. You also want to check for the disclaimer on the site stating similar to "prequalifying will not affect your credit score" and take a screen shot. You save the screenshot because, if they misrepresented themselves by saying it does not affect your credit score and they perform a hard pull, you will want to contact an attorney to seek a claim for misrepresentation and provide your attorney with the screenshot and your credit report showing the hard inquiry. I used, and my local bank which did not perform a hard inquiry.

If you like the terms the soft inquiries provided, than you can proceed but you may want to check your insurance cost for your new vehicle before beginning the application process. If you dislike the offers, then you may wish to wait for a lifestyle improvement change?

I was looking for a new car loan after two years of improving my credit, and in the end of 2019 started to receive credit card preapproval offers from companies that would not touch me two years ago. My efforts have paid off. I have a few vehicle selections but most were out of my comfort zone. I wanted a new car as only new cars are protected by the lemon law. I perform a search for auto financing prequalifying and soft pulls and found my rates from 9.99% to 15.99% which better than a 24% on previous car loan. Using Capital One Auto Finance tool, I got prequalified up to $43,000 but my comfort zone was in the $17,000 range. I called the representative and ask them to estimate my APR (interest rate)? They gave me a 5.99% APR on 60 month loan. Much better than the 24% APR two years earlier! My last check was how much insurance cost will increase? I logged into my insurance app and added the vehicle make, model and year that I am interested and got an instant quote. The quote stayed within my comfort zone. I then printed out my Capital One Auto Finance pre-qualification letter and my proof of income and contacted the dealership. When I arrived at the dealership, I asked for the salesman that I have been conversing with through email so I can avoid the other sales staff that circle the front entrance like vultures circling prey? I checked out the vehicle to make sure that I am satisfied with my selection, then proceeded to close the deal. I completed the credit application and added the statement above my signature "For Capital One Auto Finance ONLY," to prevent and not authorize any other credit pulls. I chose a 72 month payment term which increase my APR to 7.99% but at the time the finance manager was completing the online agreement with Capital One Auto Finance, Capital One drop the APR to 6.99%. I took the GAP insurance-ONLY because you are always underwater with a car loan, it's not like real estate that appreciates. I drove the vehicle off the lot later that evening with only two hard credit inquiries. I previously authorized the dealership to perform only one inquiry to get an estimate of their financing. Otherwise, I would have only one hard inquiry.

A very stress-free car buying experience!

Wholesale Tradelines have a very nice collection of helpful videos that help with legitimate credit repair at

Capital One Auto Finance tool is great for prequalification without the hard inquiries until you are ready to buy your new vehicle?

UPDATE on July 7, 2020

A free dispute desktop application has been released that will draft dispute letters to send the three major credit reporting agencies. Additionally, the application will draft a pay-for-delete and a cease-and-desist letter for creditors and collection agencies. The documents are created in Word DOCX format for easy editing and attorney review.

The application can be download from



Survival Revealed originally created as a pamplet in 1989 to help a person get back on their feet. Survival Revealed offers real life tips to survive life shortcomings and excel.