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The reason why landlord charge app fees and car loan lenders don't is simple. Tenant's will pay app fees and car buyers won't. I'm not sure what motivation in attributing some convoluted explanation to give some kind of moral justification to this. There is none, landlords charge app fees cause tenant's will pay them and they'll have more money. Nothing wrong with that but let's just call a spade a spade.
If you honestly think that you are not paying for a fee when you are buying a car, you grossly misunderstand how business works. Trust me, you are 100% paying for a credit check when you buy a car, its just built into the overall cost of the transaction.
Also, a car dealership will run a lot more credit checks than a property management company would, so you have to factor how expenses scale, and they are probably able to run their checks for a lot cheaper than a landlord would ever be able to.
I also "refund" the cost of the app-fee and credit check to the person who I will eventually rent the unit too, I credit this cost towards their rent. Their rent is also $5 more per month, which, after a year, recoups my cost back to me.
I don't charge application fees on rentals I own... have very little turnover and when I do, it is simply a matter of going to my wait list.
When I managed property for others... Application fees were simply how business was done. Part of the reason has nothing to do with checking credit because without a fee... we would get 15 to 20 applications for a single showing... with the fee, the number of applications dropped to 3 or 4.
Another big plus is if someone applied and paid the fee... we would not charge them another fee for up to 6 months... so one fee covered all of the available units over a 6 months period.
I got to thinking about this. I asked & my son confirmed He was charges Cr & Background checks when he purchased his home. They even charged him to check Job History... wanted to know not how long he worked in the jobs BUT how long in between he was unemployed.
If you honestly think that you are not paying for a fee when you are buying a car, you grossly misunderstand how business works. Trust me, you are 100% paying for a credit check when you buy a car, its just built into the overall cost of the transaction.
Also, a car dealership will run a lot more credit checks than a property management company would, so you have to factor how expenses scale, and they are probably able to run their checks for a lot cheaper than a landlord would ever be able to.
I also "refund" the cost of the app-fee and credit check to the person who I will eventually rent the unit too, I credit this cost towards their rent. Their rent is also $5 more per month, which, after a year, recoups my cost back to me.
Its just business.
I go to a car dealership and I don't buy a car I pay the dealership zip. I am 100% not paying for a credit check. The cost of the credit check is not passed to the applicant, the dealership eats the cost as I said, the car buyer isn't paying for the application any more than they are paying for the water bill of the dealership. I understand exactly how the business works.
I go to a car dealership and I don't buy a car I pay the dealership zip. I am 100% not paying for a credit check. The cost of the credit check is not passed to the applicant, the dealership eats the cost as I said, the car buyer isn't paying for the application any more than they are paying for the water bill of the dealership. I understand exactly how the business works.
But you do understand that excluding those that can't get financed, at least 80-90%, probably more, of customers that get to the point of having their credit ran are leaving in a car. The salesman has sold, the price and trade have been agreed on, their is a "meeting of the minds" to do the deal. Constantly filling out credit apps often enough will have a negative impact on your credit. It only takes 5 minute to look at a place and 5 more to fill out the application; the fee insures that you're not jerking anyone around kicking tires so to speak.
I go to a car dealership and I don't buy a car I pay the dealership zip. I am 100% not paying for a credit check. The cost of the credit check is not passed to the applicant, the dealership eats the cost as I said, the car buyer isn't paying for the application any more than they are paying for the water bill of the dealership. I understand exactly how the business works.
You obviously do not understand how the business works. The cost is built into the business. You are paying indirectly, not only for your own credit check, but also for the people who get a "free credit check" but end up not buying a car. You could say its subsidized by all the people who do end up buying cars.
Hey... Mom went to buy a car... her only new car for cash.
It was special ordered and took about 6 weeks.
When she arrives to pick up her new car... the Dealer has the finance guy come in and said they would like to finance the car for her and based on her credit they can offer her special manufacturer financing.
She never filled out a credit report and NEVER applied to finance... it was a cash deal from day one.
Someone paid for the credit report and whomever ordered it wasted money.
Hey... Mom went to buy a car... her only new car for cash.
It was special ordered and took about 6 weeks.
When she arrives to pick up her new car... the Dealer has the finance guy come in and said they would like to finance the car for her and based on her credit they can offer her special manufacturer financing.
She never filled out a credit report and NEVER applied to finance... it was a cash deal from day one.
Someone paid for the credit report and whomever ordered it wasted money.
I'd be livid if someone ran my credit check without my okay! Grrrrr!
Hope your Mom enjoys her nice new car with the new car smell.
You obviously do not understand how the business works. The cost is built into the business. You are paying indirectly, not only for your own credit check, but also for the people who get a "free credit check" but end up not buying a car. You could say its subsidized by all the people who do end up buying cars.
There is no free lunch. Only the illusion of it.
I wonder if you are smacking your head in real life and that's why your having such a hard time with this. An application fee is charged to applicants. The price of the car(including profit) is paid by car buyers. Applicants do not pay application fees because as you pointed out(and then of course contradicted yourself by arguing with me) when they put in an application they pay nothing(and they get a "free lunch"), and do not pay anything ever unless they become car buyers.
So there is no application fee indirectly paid by applicants in a car purchase.
I had friends that owned used car lots they go to auctions pick up a car then Whatever they paid for the car He charges the Buyer as the Down payment.. right there he has his money back. Then the buyer over time pays him another say 3x org cost! No cr checks nothing BUT you the buyer just purchased a car that say sold for $500... $2000! I was his driver a couple times so I learned how they rip people off!
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You obviously do not understand how the business works. The cost is built into the business. You are paying indirectly, not only for your own credit check, but also for the people who get a "free credit check" but end up not buying a car. You could say its subsidized by all the people who do end up buying cars.
