Today I negotiated a cash deal with a Lexus dealer in FL. I then provided them my DL, Insurance and Credit card front/back, then got a call from their sales manager for the SSN. I was doing a cash purchase, and told them that I would pay $5k with the credit card and remaining via bank cashier check. That sales manager told me that it is for Patriot Act and wouldn’t run my credit. I asked him if he would give me in writing that he will not run the credit, then he told me that he would not give anything in writing. What really surprise me that it was a Lexus dealer. These kind of dealers can do alot more damage to Lexus’s brand with their shady business practice. Is there anyway to let Lexus know about their unethical business practice? Or Lexus doesn’t care?
In this market, they don’t have to sell you the car.
They are following a procedure that if they diverge from, they might make other mistakes that could cost them the car, in court.
If you are fighting for the ‘principle’ and are a lawyer, go for it! If you aren’t, I don’t think any lawyer will sue based on ‘running your credit once’ as the damages are minimal.
Dealers are required to verify identity. Has to do with money laundering, terrorism stuff, bla bla bla. They aren’t going to sell a $50k car for cash to some guy off the street without knowing who he is. This kyc part is legit as annoying as it is.
Fair enough, at the same time, dealers are required to make sure any cash transaction over 10k submits an 8300. In Florida I’m not personally shocked this would happen.
Not going to hire a lawyer for such stuff. Already have enough things in life. I would rather go buy from a different Lexus dealership. I might have to wait with other dealership. Only thing was that they had the model in stock for delivery.
Only you can decide if the action was based on ignorance or malice, but the bar is really low for permissible purpose (as defined by the Fair Credit Reporting Act) for a business to access your credit file.
Also, credit inquiries are virtually meaningless, and inquiries of the same type (in this case, auto financing) within a reasonable amount of time are scored as one by the FICO algorithms anyway.
Its an old trick, to see if they can get any financing deal lined up for you to pad the back end.
Dealer does not need this period, especially since they wont give it in writing. Its probably worked in the past for most unsuspecting customers, cause how many really ask questions when buying a new shiny toy.
