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Senior Contributor
imducky
Posts: 3,432
Registered: ‎08-27-2007
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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

i was surprised that the whole thing went down that way too. i'm guessing the letter of credit was sufficient enough to satisfy thier concerns (along with the phone calls). i thought i was going to carry the check to the dealer, but the rep copied it and said nope we mail it.
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uptomyneck
Posts: 51
Registered: ‎06-07-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



Brammy wrote:


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?



No, the credit manager doesn't have to approve you.  They just have to perform due dilligence under the required federal law.  Now, as an employee of the company they have a fiduciary duty to ensure that any funds they take are legitimate.  So some dealerships may be extra cautious and require a cashier's check.  But, if they ran your credit, and preformed the required checks, they know whether or not you can write the check.  Then it's the discretion of the Finance Director- or in some cases the General Manager.
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Timothy
Posts: 9,252
Registered: ‎03-19-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

I have written personal checks to a dealership for a $22K truck post PATRIOT ACT and another pre-patriot act for $35K

No credit apps- They did call my bank to verify funds-
My bank would not verify until they talked to me and released them to verify funds.

THIS CHECK get reported to the IRS. Did they verify my identity - yes DL, Proof of insurance, the verification information my bank needed to allow them to talk to the dealer.

Credit check? NO WAY . CREDIT APP? No F'ing way.
Senior Contributor
imducky
Posts: 3,432
Registered: ‎08-27-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

ok i'll settle this tomorrow i'll drag a little red wagon full of benjamin's to a dealer and say i want that one, then wait on sw to tell me wether or no i took a hard.
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Timothy
Posts: 9,252
Registered: ‎03-19-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

That kind of CASH has a whole different set of rules-



dnm45227 wrote:
ok i'll settle this tomorrow i'll drag a little red wagon full of benjamin's to a dealer and say i want that one, then wait on sw to tell me wether or no i took a hard.



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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

Two thoughts:

--After reading the nightmare stories on these boards, with the endless stories of other peoples activities showing up on our reports and on and on, how can anyone possibly think that pulling a credit report verifies identity? This is sheer laziness on the part of the dealers. If they need to conform to the so-called Patriot Act, drivers licenses and passports are just fine.

--With things like this being done under the claim of national security, do you sleep better at night? Whatever happened to the Bill of Rights? My father and uncle did not give 30+ years of their lives in the Army so that we could be required to bend over and cough whenever someone with a gummint ID says so. (And I'm a Federal employee.)
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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fused
Posts: 16,378
Registered: ‎03-12-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



uptomyneck wrote:

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.

 


It seems quite clear to me that the OP wanted to pay with cash because they had the money and didn't need financing not because they were making every effort to avoid inqs. I agree with Brammy, Timothy, MV and most of the others. The dealership did not have PP and has violated the law. This is very sleazy!
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FICO 08 Scores (09-16-2014): EQ 824, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)

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ozgirl
Posts: 122
Registered: ‎09-01-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

I am doing more research on this matter-- my situation happened in California. I found some info on the internet where a couple in So. Cal wanted to pay cash for a luxury vehicle and the dealership would not sell unless they provided a FINGERPRINT--citing the Taskforce for Regional Autotheft Protection (TRAP) this "taskforce" could not be found on Google! While I understand the concept of a dealership being a Financial Institution -could that not also be true for stores and other retailers that offer financing for large purchases. Yes, dealerships (BMW, Toyota etc..) have their own finance facilities however--if you are not utilizing them then they are not acting in the capacity of a financial institution. Additionally, dealerships also use outside financial institutions. Or, as one person indicated, they had secured financing through another company. The $9999.99 threshold which triggers IRS notification is often exceeded with many purchases furniture, electronics, appliances-- yet I have never experienced this type of request from another retailer. Why is the cash you spend on a vehicle any different than the cash you spend on other items that can be financed through a retailer? I am bound and determined to find the answer to this one
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SmartCookie
Posts: 2,010
Registered: ‎07-01-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!

[ Edited ]
Not sure where if or where it appeared here but a dealership is definitely not a financial institution.
 
Thought we scared you off with all the responses you got!
 
 
 
 
 
Edit:typo


Message Edited by SmartCookie on 10-04-2007 12:50 AM
EQ 787 EX 781 TU 737 11/17/07 *** I am not an attorney. If I was, I might not clip coupons. If you want legal advice, consult an attorney. If you want my personal opinion, feel free to consider my posts***
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MidnightVoice
Posts: 8,161
Registered: ‎03-25-2007
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Re: Car Dealer Said they LEGALLY have to do a Hard Inquiry Even if paying cash!



ozgirl wrote:
 The $9999.99 threshold which triggers IRS notification is often exceeded with many purchases furniture, electronics, appliances--
Not in my house it isn't  :smileyvery-happy:
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