Docs required to complete cash purchase

I am planning on purchasing a vehicle with cash (check). My sales rep wants me to fill out a form online called credit application. It would need my SSN and the usual profile info on income dl etc
I have never bought a car w cash so I am not sure if that is required. She claimed federal law requires them to validate identity and it would be a soft inquiry. I have yet to see the fine print on what they are using the app for online but I would rather avoid a hard than soft inquiry.

I am in California if that makes a difference

Find a different dealer.

Also check to see if any of the available rebates on the car require captive financing. It might be worth financing it for the rebates if that’s the case, and finding out how long the loan needs to be active for before paying it off, and if there’s any prepayment penalties, etc.

I am buying a Toyota the offer is either low apr financing via TM Or manufacturer rebate and I opted for cash discount.

What usual docs would be required to complete the cash purchase transaction

You dont have to run credit but if you want them to release the car to you, you need to wait until the check clears to pick up the car or get a cashiers check. Typically we do a 5 line credit app if you are paying cash for the car. Sometimes we will pull credit to make sure the money is legit.

A dealer needs to run an OFAC on you- to make sure you’re not a terrorist. It doesn’t require your SSN. If you pay with a cashier’s check or wire transfer, you’re fine. Waiting for a check to clear could take a while. Green cash works, but if it gets near $10K, they’ll have to report the transaction to the IRS.

I will be fair and say the rep only wanted me to fill out the first two sections of the app, personal info and residence info section. None of the income section. I specifically confirmed if a personal check was ok and she said no need for a cashier’s check. I even offered cashier’s check. I fully understand the need to verify funds etc.

You guys should have a separate app with different title or hide unnecessary fields for cash buyers if the intent is for ID verification as all the other questions make it look like an app for credit

Dude, you just leave the SSN field blank. Most dealers will want to check your credit if they’re releasing a car with a personal check. No SSN- no credit report. A cashier’s check or wire transfer eliminates the worry that your check is good.

I offered a Cashier’s check was told personal is fine.

This was their reply when i pushed back on SSN
"Sorry xxx, its to idenify you and required by the federal government. It is not to offer you credit.
"

per the edmunds site it made it appear SSN is required as the 8300 form has a field for SSN

https://www.edmunds.com/car-buying/car-dealership-credit-report-scams-and-the-patriot-act.html

it sounds like there’s no consistent process in place. I’m going to contact toyota hq tomorrow and see what they say.

Man you overthinking it. Maybe personal check does not require a cash transaction report but i would just put social and move on. They already accepted cash so doubt they will try to give you financing. I think some dealers are not aware of all intricacies of Patriot Act.

I’ve never heard of a cashier’s check being considered a cash transaction for Form 8300 purposes and have worked at CA dealerships for years that don’t require an SSN to take a cashier’s check. Check with the finance manager of the dealership. Ask how long they will wait before releasing the car with a personal check. Ask if a wire transfer will require an SSN.

https://www.carbuyingtips.com/articles/blog/why-car-dealers-want-to-check-your-background-when-you-pay-cash.htm

It was probably before 9/11 :roll_eyes:

That offers you no guarantees whatsoever.

Fair Credit Reporting does not allow credit to be pulled for impermissible purposes so dealerships cannot just pull it unless you explicitly gave them permission to do so. If the dealer does so and cannot evidence that you gave authorization they are in violation of the law and subject themselves to a lawsuit.

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Signing a credit application gives the dealership permission to pull credit.

I paid cash (check + CC) for my last car 4 months ago. I agreed to an OFAC (not a credit check). This was in California.

Have not seen a hard credit pull on any of the 3 bureaus come through.

Do you recall if it was a soft inquiry?

Is the screenshot of the application

I have included the sections i have asked to populate

If you dont fill the Social Security section, how can they pull credit? I think this is just for the OFAC check. If you fill in Social Security, it will be a credit app.

at my store, i can’t let a car leave my lot without a credit app unless someone steals it. we’ve literally let deals walk because of this. green cash, 100 bands, cashiers check, onepay, nothing. if money is fake or the check bounces or a stop payment occurs, you’re still on the hook.

you have no idea the amount of fraud people try to pull off at dealers, and they’re very good at it.

btw. there’s no such thing as a soft pull at a dealer.

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