Paying cash...

[Anonymous]

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@GregB wrote:

Well, I can see at least one reason. They were accepting a personal check for almost $70,000. I could see that there could also be some concern over a fraudulent cashier's check. I don't know how often a dealership is defrauded by a customer through things like identity fraud. Also bear in mind this is after the deal was done, check written and they told me that they do this as part of their procedure.

At the time I was surprised but assumed it was because of the personal check. It sounded reasonable due to that alone. I have since learned that it is their procedure to run a credit report on each buyer, cash or not. I have since bought another vehicle from another dealership in the same organization. They also pulled my credit report but I WAS financing that vehicle since it is a business truck and I can justify paying interest.

BTW, this is part of a large dealership organization that owns 300+ dealerships. They are very professionally run and have excellent CSI. In each case I was travelling quite a bit further than the closer dealership of that brand.

Message Edited by GregB on 09-04-2009 04:34 PM

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Was it Autonation?

Their policy is to run a credit report to obtain a Hawk report for each buyer. that way they can confirm that the person in question is probably the person presenting the ID.

I think it is a valid point. A vehicle can be bought in cash and titled with just a ID license, it is a good way to look for fraud/criminal behavior and intent.

The Hawk report helps them

[IOBA]

How can pulling a credit report help them ID a person?  The picture is not on the credit report.  

In addition to providing my driver's license, they required my social security card (original, not copy), proof of residence (utility bill), and I want to say a copy of a bank statement.  All of the docs (except for the ss card) had to have my current address on it.

I also had a letter from my bank verifying funds and guaranteeing the check would clear.  The bank also encouraged the dealership to call them to verify funds. 

I also had clear title to my previous vehicle (my trade-in) that also had my current address that matched everything else.

There was no reason for them to have pulled my credit. 

[IOBA]

I think AutoNation is a LARGE dealership(s) or franchise.   Some dealerships "own" several brands of dealerships.  For example, the same person/company may own a Toyota, a Jeep, and a Honda dealership.

[Anonymous]

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@IOBA wrote:

There was no reason for them to have pulled my credit. 

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As said, Hawk report.

If you apply a policy equally across the board to everyone you cannot be accused of discriminating against anyone.

The Hawk report policy was created to check that the paperwork being supplied did match up with an actual person that is in a Credit Bureau database. It was to prevent vehicles being purchased in someone else's unknowing name, and also from the vehicles being used in a crime- as in getaway car, criminal transportation or use as an explosives vector

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All factors that if you were the Dealership in question that got to sell the lucky car the bad press would be terrible, and also since such databases do exist you had the possibility to prevent it, and therefore are then exposed to some civil liability.

An individual inquiry on your credit report drops your score no meaningfull amount. That drop is then made up in the following months and completely is discounted in one year.

There is no reason you should care or be this angry about it. 

Message Edited by usmc58555 on 09-09-2009 06:58 AM

[GregB]

So we have Autonation that usmc58555 tells us always pulls a credit report even if you don't finance a car. We also have the different company that owns 300+ dealerships, that has a company policy to always pull a credit report. Since then I have also asked and found that two companies each do the same. One owns 100+ dealerships and the other about a dozen.

Seems like a pattern here.

[IOBA]

Usmc58555 –thank you for the detailed information and for another perspective.

I still havean issue with anyone pulling my credit without my permission and myknowledge. 

Thedealership did a hard pull.  A hardpull did not provide any more information than I had already provided.

I am not too worried about credit score.  It’sthe ethics that bother me.  Wouldyou be offended if a stranger went through your house, looking at your personalpapers and documents?  Without yourpermission and knowledge?

It’s overand done with.  And know that I amaware of the situation, when things are different and I can go purchase a car,I will be taking a different approach. I will still pay by check (essentially, cash), but be more aware of whatmay be happening behind the scenes. I will definitely have more questions to ask!

Thank you for the new perspective usmc58555.

GregB – if they disclose they are pulling a credit report,no matter how I am paying, that is different.  If I know someone is snooping in my life and that isdifferent.

[Anonymous]

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@IOBA wrote:

Usmc58555 –thank you for the detailed information and for another perspective.

I still havean issue with anyone pulling my credit without my permission and myknowledge. 

Thedealership did a hard pull.  A hardpull did not provide any more information than I had already provided. Dealerships cannot soft pull.

I am not too worried about credit score.  It’sthe ethics that bother me.  Wouldyou be offended if a stranger went through your house, looking at your personalpapers and documents?  Without yourpermission and knowledge? My house contains my belongings that I purchase, own and maintain. Your CB information is your information but it is not owned by you, compiled by you or maintained by you.

I understand in many transactions that people may look at my credit report. A credit report has a score and my accounts, but unless we are talking a Victoria Secret Card, or an International Male or Structure card, it makes no real claims about my personal life and piccadillos. late payments and non payments are what I have done (not that I have any on my current report) So I am neither ashamed or worried about anything on the report since essentially I am, in your case paying cash for the car anyway-which very few people who work for the dealership are probably in any position to do to do.

You are worried about something that really does not effect you. 

It’s overand done with.  And know that I amaware of the situation, when things are different and I can go purchase a car,I will be taking a different approach. I will still pay by check (essentially, cash), but be more aware of whatmay be happening behind the scenes. I will definitely have more questions to ask!

Thank you for the new perspective usmc58555.

GregB – if they disclose they are pulling a credit report,no matter how I am paying, that is different.  If I know someone is snooping in my life and that isdifferent. 

I was not there and greg was not there. We have no way of knowing all the paperwork you signed. It is highly possible that you signed something that gave them the permission to do a cursory check and were simply unaware. We weren't there we have no way of knowing.

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Again, every pull costs the dealership dollars on a transaction.  A reputable place would not do it if there was not a reason.

Message Edited by usmc58555 on 09-09-2009 08:22 AM

[IOBA]

Thank you for your response.

I had actually refused to sign the credit application.  I told them, and wrote it down, that they did not have permission to pull my credit.  There was absolutely no reason for them to do so.  They could not give me a reason -- other than to see if I qualified for financing, which was a moot point because I was not applying for a loan.  The dealership knew I was paying cash.  I had been there several times and made sure I had everything they needed for it to be a "cash" purchase.  (Such as the letter from the bank verifying funds, etc.)

Having had my identity stolen before, I am much more sensitive to someone accessing my personal information than some people.  

All in all, this conversation has been an educational experience.