That isn't quite the way it works. While, yes, they are pulling your credit and they are hard inquiries the credit companies treat those pulled within a certain time frame as only one credit pull. Do NOT be afraid to shop around.

Different company's treat hard inquiries differently. Some look at them as one if they are within a certain time frame while others look at them individually.

Disclaimer: This is what my research has showed me, I do not know this for a fact.

Great link, a lot to learn there.

Only thing that I can see being a problem with multiple hard inquiries is if a company doesn't use the FICO score. It says "used by 90% of top lenders" which means that 10% of top lenders don't use it. If 10% of top lenders don't use FICO, how many non-top lenders also don't use FICO?

In the end I am probably over analyzing it. Just my $0.02

I have a decision to make so this thread should help with that. I will be going to the dealer today after work to update my sales agreement for my Credit Union. The dealer asked to run my credit to see if they can beat the rate. My CU rate is 2.99% for 72 months with no fees. I am assuming that the dealer will charge an acquisition fee if I finance through them and I don't think they will be able to beat 2.99%. In order to beat that rate, I am assuming that they will make multiple hard inquiries. What do you think? Should I give them the go-ahead?

It will be treated as ONE inquiry. Don't worry about it. Hell, I've got three hard inquiries in the last three months and it dropped my score 2 points. It's really over played. As long as you aren't trying to extend your credit by a crap ton you will be fine. Shop around. 2.99% is not that great of an APR if you have great credit.

My FICO score is 746.

Then yea, you should get an excellent rate pretty much anywhere. I'd shop around.

I thought 2.99% was pretty good! I guess I'll let them see if they can beat it. You've convinced me. I made an excel spreadsheet to calculate how much more I pay over the life of the loan with different finance rates and acquisition fees.

I just glanced at PedFed based on an above suggestion and their rate for your term of 72 months (assuming good credit) was 2.74%: LINK And FWIW I've heard the same things about multiple inquires like for auto loans for example are treated as one and don't effect your credit dramatically. Hope that helps you, definitely look around.

Just got back from the dealer. They beat the credit union by 0.6%! I also qualified for the concord rebate so I saved $1000. You guys are great, happy I was convinced to let the dealer try and beat it.

Now I got the car for $43,000 with 2.39% financing for 72 months. I am a happy man.

2.39% isnt that bad!!! If you are happy with it then go for it! Congrats!

You can get all that info by googling auto loan calculator

Thanks for your help!