All Credit Applications Accepted Car Dealer Scam

Also known as the “All Credit Applications Approved Scam,” this is one of the most commonly used car dealer advertising scams used in a dealer’s advertising and is highly effective in driving traffic to the dealership.

This dealer tactic is closely related to the Guaranteed Credit Approval Car Dealer Scam. There is no such thing as a loan guaranteed to be approved, but many dealers will exploit these play-on-words to get customers to the lot. The dealer will check your credit, and you’ll likely be given extortionate terms if granted.

Table of Contents

Why Dealers Advertise All Applications Approved

This popular dealer advertising scam is used to drive many customers to the dealership. The target focus is individuals with less than perfect credit that have been turned down at other dealerships and are desperate to buy a vehicle. The term “all credit applications accepted” can be found in car dealers’ print, television, internet, and radio ads.

This statement has many variations and is just a play on words. The dealer wants you to believe no matter how bad your credit is, they will be able to find you financing and approve you for a car loan.

Once these customers show up at the dealership hoping to be approved for a vehicle, it’s the car salesman’s job to weed out the people who can buy a car from those who can’t.

How the All Credit Applications Scam Works

This statement is usually combined with a call to action or urgency statement when used in a dealer’s advertising. Here’s an example of how you may see this statement in the ad below:

Special Lenders On-Site

ALL CREDIT APPLICATIONS WILL BE ACCEPTED!

*Labor Day Weekend Only

The “All Credit Applications Approved” statement gives you a false belief that you’re essentially guaranteed to be approved for a car loan. This type of advertising is directed toward people who have bad credit or have recently been turned down for a car loan at another dealership.

Combined with other statements, the ad makes you believe particular banks and lenders are visiting the dealership to help you get a car loan. The urgency statement, “Labor Day Weekend Only,” instills the illusion that the offer is only available for a limited time, so you better hurry up and get there.

The true meaning of the “all credit applications approved” statement is not that you’re guaranteed to be approved for a loan. It means the dealer will accept or approve of you submitting a credit application to them. This scam is a very dirty little play on words but is continually used because of its high effectiveness in creating large amounts of traffic.

How to Avoid the All Credit Applications Accepted Scam

Have a good idea of how the auto finance process works in a dealership.
Don’t let the finance department know more about your credit history than you do. Know your credit history before visiting a car dealership. Get and review your credit reports and scores from a reputable online company.
Avoid deceptive car dealership advertising. Competitive pricing always gets you the best deal. Have car dealers compete online in a reverse bidding war for your business by having them send you discounted price quotes to your inbox.
Only finance a vehicle with a dealership as a last resort. The best online auto loan companies will provide you with free no-obligation auto loan quotes. You can use these quotes to negotiate a better interest rate with a dealer’s finance department.
Always look for the asterisk or symbol when you see a price or payment posted in a car dealer’s advertisement. You should always carefully inspect the ad and read any small print you find. This small print will disclose any unique details that pertain to the offers in the advertisement.
If you have some bumps in your credit history or no credit at all, you can still get pre-approved online for a bad credit auto loan.

About the author
My name is Carlton Wolf, and I’ve been in the car business since 1994, both retail and wholesale. I created the Auto Cheat Sheet to better educate buyers about the deceptive sales practices used by many dealerships throughout the country. Please understand that not all car dealers are dishonest. However, you never know who you’ll be dealing with, though. I’m willing to share my knowledge and experience with anyone who listens. Keep in mind that I’m a car guy, not a writer.