Do i need to do a credit check on a cash deal?

Does anyone know the requirements when doing a cash deal. I did a cashiers check before but still had to do a credit check.

Do i have to agree to the credit check?

If it’s for a lease, yes, it is required. A cash purchase, no, but they may very well try and run your credit in hopes of convincing you to finance with them or some other random reason.

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I dont mind doing soft checks but a hard pull is what im worried about. I have great credit but too many pulls in the past year hence cash deals im preferring

What do you need a credit check for if you’re not borrowing and they’re not evaluating creditworthiness to lend?

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Some stores do it to prevent fraud and forgeries.

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Is it a lease that you’re paying up front for or a cash purchase? Fwiw I fall in the category that hard pulls are of minimal effect on a credit score and typically come back up in a short amount of time provided you are being responsible with utilization & timely payments.

Car dealerships only do hard pulls, they would have no reason to do a soft one.

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Most dealers dont need a credit check if you bring a cashiers check. Just did a deal like that today

This is due in part (or wholly) to the Patriot Act by George Bush
You do not have to agree to the credit check.

HOWEVER

They don’t have to agree to sell you the car.

  • Yes, it’s illegal, they are supposed to do a different patriot act check
  • Will you be able to ‘profit’ from it? Doubtful as the fines are government fines,.
  • Does it cover the dealers ass during a money laundering audit? Sure does.

So in short, the dealer will probably fight you for it.
I just read in this article that Cashiers Checks $10,000+ require Patriot act…lol
https://www.edmunds.com/car-buying/car-dealership-credit-report-scams-and-the-patriot-act.html

I have no idea how a credit check would prevent fraud and forgery (if that’s the justification they use) so I’d tell the dealership to just take the cashiers check, verify it, and hand me the keys :joy:

It’s more that a credit check is one step in the process when combined with several other steps that lowers the likelihood of fraud occurring.

Those questions that ask what vehicle have you previously owned, what street did you live on, or what was the address number. One question by itself doesn’t do much, string a few together and at least a Corp or bank has reduced the risk as much as they can.

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Yeah. Since the deal will be above 30k, I see thry eould have to run credit. Perhaps, i tell them to cash it and i come back ?

depends on the dealer, but cash deals with wires, there is no credit check. Just wire the amount wait till it clears. get car.

It’s not even a useful step, though. Neither credit nor public record questions would change the likelihood of a cashiers check being forged. Running someone’s creditworthiness and determining whether a cashiers check is legitimate are completely unrelated… Pulling OP’s credit offers no credence as to the legitimacy of their cashiers check.

Surely a dealership isn’t stupid enough to think that a credit check adds offers any kind of assurance that a cashiers check is legit. If they’re making you run your credit to buy a car in cash, they must have something else in mind.

Tell them you’re not interested in borrowing money and are only willing to buy in cash with a cashiers check. Running credit is a waste of everybody’s time.

It’s an identify verification step for the person who’s handing over the cashiers check (or personal check), not for the validity of the check itself.

Anyone willing to risk the crime of cashiers check fraud / grand theft auto is going to have a fake ID.

Running credit doesn’t take any time at all from the consumer, and for the dealer it’s the push of a button in their dealer management software.

Subscribers to credit reporting services can also opt for optional anti-fraud related products, and those results are returned to the DMS along with the credit report data.

You’re thinking of a credit report in the context of what you see as a consumer.

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Verify identity and prevent fraud. There was a vinwiki video about it, some guy was running around with fraudulent cashiers checks and buying a bumch of vehicles for export or something like that.

I feel like it would be a whole lot easier to just call the bank to confirm validity and have them cash it. I’ve just never had a dealer require me to run my credit for a cash purchase. I suppose they’ve never asked, either. I’m more sensitive about inquiries than most, but I’d still expect them to verify legitimacy in more intuitive and convenient ways than playing credit roulette.

The review here is not as much about fraud, check checking credit. It’s about KYC and AML standards and protecting the dealership from involvement with customers whose source of funds is potentially ill gotten. I wonder if the dealer would accept a letter for you on the “source of funds” similar to a mortgage down payment?

You dont have to provide the SSN when you are giving them a cashier check.

I had this issue with one of dealerships in FL, and I denied to provide SSN. But later they agreed to sell the car without SSN with cashier check.

Some dealerships may ask SSN to run the OFAC report. They can check it without SSN as well. If the dealership agrees that they are not going to run the credit check, but just need the SSN for OFAC, etc… then you may consider locking your credit file and give the SSN as well.

Our dealer policy is if you are a new client, we do a soft pull if you are in-state with a personal or business check. No credit check if you bring a cashier’s check or wire. For a soft pull, we do a “5 liner”: name, address, SSN.

I should also add that if you send a wire, do not send it as an ACH. Many dealers’ banks auto-decline ACH since it is reversible.

And most dealers report any cash transaction or down payment, regardless of if it meets the $10k threshold for mandatory reporting.

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If it is cash no, they may just need to verify that the check actually cashes before letting you drive away with the car as there’s a lot of scams with cashiers and bank checks.