Credit check required even when paying with cash

[05RunnerV8Me]

Visited a dealer recently to talk about a used 4runner on the lot. The dealer asked me how I was going to pay. I said I will pay in cash, a certified check or whatever else is acceptable. The salesman said to me that he has to still run a credit check on me and he will need my SSN and date of birth when I am ready to pay. Have the rules changed ?

 

[Thai]

When i bought my Prius last year, i was not asked about credit check at all....

 

[jwyshrek]

Uh, that doesn't sound right. I would go to another dealer or tell that guy to put the credit check where the sun don't shine.

When I paid 'cash' for my 4Runner, no credit check was done by the dealer.

Why would they? No financing was done.

 

[gptoy96]

Just bought my Taco a couple of months ago and no credit check required.

Sounds fishy to me.

 

[DaveS]

I suspect if you tell him you won't be making a purchase if he needs to run a credit check he will rapidly change his mind. There is no good reason on earth to do this - he is probably trying to find out your rating so he can decide whether to push hard on upselling you.

 

[Glock_19]

Back in November I paid with a cashiers check for my 4Runner at the dealer. Definitely no credit check, in fact the whole transaction took about 15 minutes (mostly signing papers and filling out the warranty info).

 

[Hawkdog21]

agree with above, I wrote a personal check to my dealer for the entirety of my 2010 4runner last spring and besides the look on the guys face when a 25 year old was paying all cash for a new truck, it went very easy, no credit card or anything. I did secretly want to put the whole truck on my American Express and then instantly pay it off and get tens of thousands of rewards points (free weekend in vegas, awwwwww yeeeeeaaaaa) but twas just a dream.

 

[CXS]

Like everyone is saying, don't do it. They're most likely seeing how easy a mark you are for up-selling. Use a different dealer.

Hawkdog21, I tried to put a purchase of a Camry on my Visa card but the dealer wouldn't do it so I wrote them a check using a Visa check so I succeeded in getting my miles. The dealer wasn't bright enough to realize what I did. I suspect they have tightened this up since then though.

 

[Hawkdog21]

Hawkdog21, I tried to put a purchase of a Camry on my Visa card but the dealer wouldn't do it so I wrote them a check using a Visa check so I succeeded in getting my miles. The dealer wasn't bright enough to realize what I did. I suspect they have tightened this up since then though.

Good call, I will try that next time, its worth a shot for loads of free miles/rewards.

 

[borgzman]

I paid cashiers check on my used vehicles. No credit check..

I don't understand why the dealer would play with the price of a used vehicle when someone decided to pay?

or he might give you a much better deal upon knowing your credit score, lika "give me the cash you have, drive this brand new for less $5k, the remaining balance -> pay in ? months without interest.

I would probably joke and ask "why, r u going to give me a brandnew for additional $2K" ha! ha!

 

[Nervo19]

Federal money laundering statutes require the dealer or anyone who makes a cash transaction of $10,000 or more to fill out IRS form 8300. He needs more than your driver's license to prove your identity. The burden of complying with these regulations falls on the dealer. I've seen a small lot dealer go to Fed prison over it. His whole business was structured to sell to drug dealers though. If you go to the bank with 10k in cash, same routine, also if you show up to buy a house with over 10k in cash. It should not be a problem for anyone who has nothing to hide. These laws are not new. They've been in effect for at least 15 years.

If the vehicle you are buying is less than 10k, he should not need anything other than O.L. and proof of insurance.

 

[Exempt]

I bought mine cash, told the finance guy I would not provide info for a credit check, and if he asked again id buy elsewhere. He didn't ask again

 

[Satter]

Visited a dealer recently to talk about a used 4runner on the lot. The dealer asked me how I was going to pay. I said I will pay in cash, a certified check or whatever else is acceptable. The salesman said to me that he has to still run a credit check on me and he will need my SSN and date of birth when I am ready to pay. Have the rules changed ?

Since 1984......brother.

 

[ran]

When I got my '07, I was from out of state, no job and just offered to write a check for it. I remember giving my last employment is all.

 

[CXS]

Federal money laundering statutes require the dealer or anyone who makes a cash transaction of $10,000 or more to fill out IRS form 8300.

<snip>

If the vehicle you are buying is less than 10k, he should not need anything other than O.L. and proof of insurance.

Bingo Nervo! That's exactly it, thanks for clearing that up.

 

[05RunnerV8Me]

Found this
Report of Cash Payments Over $10,000 Received in a Trade or Business - Motor Vehicle Dealership Q&As
Things to note: Personal checks are not cash! Wire transfers are not cash! The IRS knows how to make it complicated.

 

[A/V1]

Federal money laundering statutes require the dealer or anyone who makes a cash transaction of $10,000 or more to fill out IRS form 8300. He needs more than your driver's license to prove your identity. The burden of complying with these regulations falls on the dealer. I've seen a small lot dealer go to Fed prison over it. His whole business was structured to sell to drug dealers though. If you go to the bank with 10k in cash, same routine, also if you show up to buy a house with over 10k in cash. It should not be a problem for anyone who has nothing to hide. These laws are not new. They've been in effect for at least 15 years.

If the vehicle you are buying is less than 10k, he should not need anything other than O.L. and proof of insurance.

Telling him they need his SSN for a credit check isn't the same as simply needing it to report the transaction to the IRS. If they needed it to report it for an IRS audit they should explain it as that.

I'd tell them to take it or leave it... And have no problem walking away.

 

[PitbullRescuer]

As all others said, no need to run a credit check. Even to comply with the IRS.

And as far ad the using the credit card goes, I told the dealer when I bought my Triumph Daytona 675 that I wad going to use my Amex card. He threw in about $500 worth of extra so I wouldn't. Had no intentions of actually using it but it's a good bargaining chip.

 

[CookieRoe]

Offer a cashiers check!! Basically same as cash. If the dealer still insists on the credit background, walk.

 

[PaulB-2006 T4R]

Visited a dealer recently to talk about a used 4runner on the lot. The dealer asked me how I was going to pay. I said I will pay in cash, a certified check or whatever else is acceptable. The salesman said to me that he has to still run a credit check on me and he will need my SSN and date of birth when I am ready to pay. Have the rules changed ?

If you paid in cash over $10k to the dealership and you need to fill out a Currency Transaction Report (CTR). The information on the CTR includes the SSN and DOB. The law has been in effect since 1984.

This is not a credit check but the information on the report is just like a credit application.

Found this
Report of Cash Payments Over $10,000 Received in a Trade or Business - Motor Vehicle Dealership Q&As
Things to note: Personal checks are not cash! Wire transfers are not cash! The IRS knows how to make it complicated.

A wire transfer from MoneyGram or Western Union is a cash transaction just not with the dealership but the dealer would need to be an agent of either company.

Offer a cashiers check!! Basically same as cash. If the dealer still insists on the credit background, walk.

I used to think like you that cashier’s checks are like cash until I started working for MoneyGram. The cashier’s checks are rarely drawn on the bank's account they are issued by MoneyGram or some other "official check provider." The bank acts just like your corner check casher who issues a money order. Next time you get a Bank check take a look. The fact is Cashier’s or Official checks they can be stopped just a check or money order but there are a few more hoops to jump through.