Reply
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

[ Edited ]


dnm45227 wrote:


uptomyneck wrote:
Dealerships-plural.  Different parts of town, different companies, different manufactures, differerent corporate counsels giving the classes we were required to take before we went out on the floor.
Like I said, you may find a dealership that doesn't follow the letter of the law, but it is the law.


you know actually now that i think about it all i had was a photo copy of the check and a letter of credit from wells fargo, of course they called wells fargo and made sure everything was cool. my point being i drove off the lot with a brand new 2005 jeep liberty from a five star dealership with a copy of a check, and they didn't pull my credit.


 
Some less reputable dealerships will try and feed you the above line assuming the average consumer doesn't know any better.  Unfortunately they don't.



Message Edited by Brammy on 10-03-2007 10:50 PM
Super Contributor
Posts: 8,193
Registered: ‎03-25-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



uptomyneck wrote:
 
 but it is the law.


Verifying the identity is the law.
 
Running a Credit Check without my permission is not the law.  It is convenient for them, I agree, but is not the law.  I have purchased 4 cars and an engine from my local dealer, and had them do repairs - they know my identity and can verify it via passport, drivers license and their records.
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
New Contributor
Posts: 51
Registered: ‎06-07-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



dnm45227 wrote:


uptomyneck wrote:
Dealerships-plural.  Different parts of town, different companies, different manufactures, differerent corporate counsels giving the classes we were required to take before we went out on the floor.
Like I said, you may find a dealership that doesn't follow the letter of the law, but it is the law.


you know actually now that i think about it all i had was a photo copy of the check and a letter of credit from wells fargo, of course they called wells fargo and made sure everything was cool. my point being i drove off the lot with a brand new 2005 jeep liberty from a five star dealership with a copy of a check, and they didn't pull my credit.


If you handed them a check and they called Wells Fargo then they performed their due diligence because they can document that a lending institution performed the required checks.  But, if you wanted to stroke a check on your own, they aren't gonna (well shouldn't) take it without getting a credit app.
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

Did someone just say a "a car dealership is a financial institution?"

I can't go back and re-read as this whole thread needs to be deleted.
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

[ Edited ]


uptomyneck wrote:


dnm45227 wrote:


uptomyneck wrote:
Dealerships-plural.  Different parts of town, different companies, different manufactures, differerent corporate counsels giving the classes we were required to take before we went out on the floor.
Like I said, you may find a dealership that doesn't follow the letter of the law, but it is the law.


you know actually now that i think about it all i had was a photo copy of the check and a letter of credit from wells fargo, of course they called wells fargo and made sure everything was cool. my point being i drove off the lot with a brand new 2005 jeep liberty from a five star dealership with a copy of a check, and they didn't pull my credit.


If you handed them a check and they called Wells Fargo then they performed their due diligence because they can document that a lending institution performed the required checks.  But, if you wanted to stroke a check on your own, they aren't gonna (well shouldn't) take it without getting a credit app.


 
For that type of transaction don't most dealerships require a guaranteed form of paymnt such as cashier's check?



Message Edited by Brammy on 10-03-2007 10:55 PM
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



Timothy wrote:
Did someone just say a "a car dealership is a financial institution?"

I can't go back and re-read as this whole thread needs to be deleted.

 
:smileyvery-happy:

New Contributor
Posts: 51
Registered: ‎06-07-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



MidnightVoice wrote:


uptomyneck wrote:
 
 but it is the law.


Verifying the identity is the law.
 
Running a Credit Check without my permission is not the law.  It is convenient for them, I agree, but is not the law.  I have purchased 4 cars and an engine from my local dealer, and had them do repairs - they know my identity and can verify it via passport, drivers license and their records.


That's why they get you to fill out a credit application.  They can't run your credit to do the verification they need without it.  If they get caught running somebody's credit without a signed app their in just as much trouble.
Now, they would strongly prefer that you finance with them, but that's a different issue.  I wouldn't recommend you do finance with them, unless you already know they have a rate that beats what you can't get elsewhere.  The point of my posts is you can't just walk into a dealership and pay cash to get out of a credit pull, because there are certain legal requirements that have to be met.

 
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



uptomyneck wrote:


MidnightVoice wrote:


uptomyneck wrote:
 
 but it is the law.


Verifying the identity is the law.
 
Running a Credit Check without my permission is not the law.  It is convenient for them, I agree, but is not the law.  I have purchased 4 cars and an engine from my local dealer, and had them do repairs - they know my identity and can verify it via passport, drivers license and their records.


That's why they get you to fill out a credit application.  They can't run your credit to do the verification they need without it.  If they get caught running somebody's credit without a signed app their in just as much trouble.
Now, they would strongly prefer that you finance with them, but that's a different issue.  I wouldn't recommend you do finance with them, unless you already know they have a rate that beats what you can't get elsewhere.  The point of my posts is you can't just walk into a dealership and pay cash to get out of a credit pull, because there are certain legal requirements that have to be met.

 


 
 
Okay I'm confused, didn't yu say earlier that if you ae paying cash the credit maager has to approve you?  Or some such thing?

New Contributor
Posts: 51
Registered: ‎06-07-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



Brammy wrote:


uptomyneck wrote:


dnm45227 wrote:


uptomyneck wrote:
Dealerships-plural.  Different parts of town, different companies, different manufactures, differerent corporate counsels giving the classes we were required to take before we went out on the floor.
Like I said, you may find a dealership that doesn't follow the letter of the law, but it is the law.


you know actually now that i think about it all i had was a photo copy of the check and a letter of credit from wells fargo, of course they called wells fargo and made sure everything was cool. my point being i drove off the lot with a brand new 2005 jeep liberty from a five star dealership with a copy of a check, and they didn't pull my credit.


If you handed them a check and they called Wells Fargo then they performed their due diligence because they can document that a lending institution performed the required checks.  But, if you wanted to stroke a check on your own, they aren't gonna (well shouldn't) take it without getting a credit app.


 
For that type of transaction don't most dealerships require a guaranteed form of paymnt such as cashier's check?



Message Edited by Brammy on 10-03-2007 10:55 PM

In three years I only saw one cashier's check.  Some people (including my dad actually) will just whip out their checkbook.
Super Contributor
Posts: 8,193
Registered: ‎03-25-2007
0

Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



uptomyneck wrote:

 If they get caught running somebody's credit without a signed app their in just as much trouble.


My point exactly.  They have no PP if you can prove ID satisfactorily
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.