Dealer wanting to run credit check even though paying cash?

[Desmolicious]

So I put down a deposit on an incoming 2026 4Runner. The dealer wanted to run a credit check and asked for my social security number.
I refused as a credit check will ding my credit, and I was not applying for a loan. I would be paying cash (cashier's check).
He kept on insisting, but I refused because it seemed totally unnecessary and detrimental to me.

They took my DL number, address, phone number and deposit and left it at that.

But what's the deal here?

Sponsored

 

[Tahoe4run]

I had the same thing. Was super pissed.

 

[Desmolicious]

I had the same thing. Was super pissed.

I refused to give my social, and I don't think they can do a hard credit check w just my DL (a soft check does not ding credit), but it annoyed me immensely.
I do have a credit freeze set up with all the reporting agencies (so no-one can frauduently open an account) and that should block any attempt they make.
But I don't understand why they would want to do this.

 

[watchbuzz]

I said no, I’m paying cash.

they did require some similar info for proof of insurance in my state.

 

[chouser]

They all do that……but for what reason, I don’t know. I paid for mine with $56,000 in $100 dollar bills. Three days later I got a letter from the dealership saying that they had reported the transaction to FInCen. A branch of the IRS. At first I was worried about this but learned that any business is now required by law to report all cash transactions over $10,000. No big deal. Has to do with money laundering, etc. So know that there is a reason for the credit check. Someone here surely knows what it is.

 

[Tahoe4run]

The dealer said something about it being an anti-money laundering requirement in California. I’m not really sure I buy that.

 

[Rellims]

Even though you are telling them you are paying cash, they want to put a finance number in front of you on the off chance a good rate gets you change your mind and finance some of it.

 

[Nodak]

lol a good dealer wont need to do a credit pull until purchase time. i put my deposit down in dec-2024 and didnt do any paperwork until oct-2025. i was committed anyway so doing a credit pull wasnt an issue at the time of signing the paperwork.

 

[Desmolicious]

lol a good dealer wont need to do a credit pull until purchase time. i put my deposit down in dec-2024 and didnt do any paperwork until oct-2025. i was committed anyway so doing a credit pull wasnt an issue at the time of signing the paperwork.

How did you pay?

 

[Nodak]

How did you pay?

i financed.

i have better things to use my cash than wasting it on paying full cash on a new vehicle right now.

i need to pay for a new roof and new deck and i am not looking forward to that bill

 

[Desmolicious]

i financed.

i have better things to use my cash than wasting it on paying full cash on a new vehicle right now.

i need to pay for a new roof and new deck and i am not looking forward to that bill

no offense, but then of course they would run a credit check.

Hope your new roof goes well. I had one damaged a few years ago, and there was a three day lull before the next storm rolled in. They managed to take off the old roof, repair rot on the supports and put the new roof on in 2.5 days!

 

[brumey]

Not all dealers require you disclose a SS# if you're paying cash. They did take my DL #, name, address. If they asked for the SS#, I would have refused.

A few years ago, I purchased a VW for my wife. I took cash to the dealer after agreeing a selling price via email. We sat down to do the deal and they refused cash! I had to leave, go to the bank and get a cashiers check. The dealer was in California.

 

[Nodak]

its an easier paper trail if you dont have cash, not just for you but all parties involved.

you will be surprised how much a paper trail is required for things now a days on big purchases like a house and so forth.

and its not always the other party forcing it, its usually federal rules that force the hand.

IRS Form 8300: The person or business receiving the large amount of cash (usually the seller or title company) must report it to the IRS using Form 8300 if the payment is over $10,000 in cash.

FinCEN Geographic Targeting Orders (GTOs): The Treasury's Financial Crimes Enforcement Network (FinCEN) requires reporting of all-cash residential real estate purchases in certain high-risk areas by shell companies (LLCs, corporations) to identify beneficial owners.

Proof of Funds: You must provide bank statements or a letter from your financial institution showing you have the money to close, but you don't need to prove income.

No Mortgage Interest Deduction: Cash buyers miss out on the federal tax deduction for mortgage interest.

Property Taxes & Insurance: You still pay property taxes and should get homeowners insurance; it's not required by a lender, but essential to protect your investment.

 

[Oldhoosier]

They all do that……but for what reason, I don’t know. I paid for mine with $56,000 in $100 dollar bills. Three days later I got a letter from the dealership saying that they had reported the transaction to FInCen. A branch of the IRS. At first I was worried about this but learned that any business is now required by law to report all cash transactions over $10,000. No big deal. Has to do with money laundering, etc. So know that there is a reason for the credit check. Someone here surely knows what it is.

I would be very surprised if you don't get a visit from some very serious people from the Treasury Dept., the DEA, the IRS, or others if you actually paid for the vehicle with $100 bills. Be prepared to explain, and be able to PROVE, in excruciating detail, exactly where that much cash came from.

Someone I know made this mistake and within days had all of their financial accounts frozen for a long time. The $10K cash rules have been in place for many years. If you deposit or withdraw $10K or more at a bank or other financial institution, they are required to report the transaction. I'm sure the dealer's bank reported it. Even if you go in and deposit $9K a day (under the $10K limit), they'll file a SAR, Suspicious Activity Report. I play golf with a retired Treasury Agent. He says he could be your worst enemy, a CPA with a gun. This is EXACTLY the kind of thing he spent years investigating.

Good Luck!!

PS: As far as the SSN question...there's a place on their form and they all ask that. You do not have to provide. They want to get as much info on you as possible; that's what they do. Not providing it and paying in cash is another red flag; they'll (the alphabet people) want to know what you're hiding.

 

[Archer]

Weird, I've bought cars with cash, never had an issue. I know they do the 10K thingy on my business deposits but I never had an issue with cash to buy something.

Sponsored