Dealer wanting to run credit check even though paying cash?

[VictoryToyotaUSA]

I have been in the car business for 30 years and Every retail customer i have done a deal with must provide a SS # at time of sale. Its required in Ohio AND the Federal Government requires an OFAC check to make sure the customer is not a terrorist or something. Below is a link if you're interested in exploring this. If you wont provide a SS # when buying a car with every dealer i have ever been associated with we would not sell you a car .

What Is an OFAC Background Check? - LegalClarity

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[VirginiaHills]

Don’t give it to them. They have no need for that. OR. say “Sure! I charge $1000 for that information.”

 

[gmarcucio]

I think they need your permission and signature to the run the credit check

 

[kekecarioca]

It's bizarre that they are asking for that now....Once you are with a Finance guy/gal, then I get it...

I was in talks for a few months with dealer before purchasing the vehicle.
I showed up with check from Credit Union (Finance) plus down payment the day of. All word of mouth and true to it.
No one asked for no credit check since finance guy simply said they could not match rates from CU. No waste of time there for no one....

 

[Evergreen104]

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 paid $175k cash for my 992 Porsche 3 years ago in WA state and never received a notice re the IRS.

 

[Desmolicious]

I have been in the car business for 30 years and Every retail customer i have done a deal with must provide a SS # at time of sale. Its required in Ohio AND the Federal Government requires an OFAC check to make sure the customer is not a terrorist or something. Below is a link if you're interested in exploring this. If you wont provide a SS # when buying a car with every dealer i have ever been associated with we would not sell you a car .

What Is an OFAC Background Check? - LegalClarity

An OFAC background check is a screening process designed to ensure compliance with U.S. economic sanctions programs. It identifies individuals or entities subject to government restrictions, playing a role in preventing illicit financial activities like terrorism financing and money laundering. This screening protects the integrity of the U.S. financial system and national security by blocking transactions with sanctioned parties.

Understanding OFAC and Its Mission
The Office of Foreign Assets Control (OFAC) operates as a financial intelligence and enforcement agency within the U.S. Department of the Treasury. Its primary mission involves administering and enforcing economic and trade sanctions. These sanctions are based on U.S. foreign policy and national security objectives. The agency also addresses other threats to the national security, foreign policy, or economy of the United States.

The Purpose of an OFAC Background Check
OFAC background checks are conducted to ensure adherence to U.S. sanctions laws and regulations. The main purpose is to prevent individuals and entities from engaging in transactions with sanctioned parties. These checks help combat terrorism financing, money laundering, and other illegal activities by identifying prohibited dealings. Organizations use these checks as a due diligence measure to avoid significant penalties for non-compliance. Compliance with OFAC regulations is a legal requirement for U.S.-based organizations and any entity conducting transactions in U.S. dollars.

 

[Scrappopatamus]

If someone demands running a credit check or your Social Security number when purchasing an item that you're planning to pay with a check, contact your state's Secretary of State and report them. There's no reason for this. There's also no reason for making a photo copy of your driver's license prior to completing the transaction. This screams discrimination. I recently purchased several new vehicles without doing so. If you look super sketchy, you might consider brushing your teeth and hair and dressing appropriately

 

[Desmolicious]

If you look super sketchy, you might consider brushing your teeth and hair and dressing appropriately

That's discriminating against us super sketchy types.

What is appropriate dress for buying a 4Runner?

 

[NYNickET]

Dealerships = Thieves & Liars . . . . i know for a fact they charged my neighbor over 10K more for the exact same 4R and i have the iMax he does not. . . . . .

 

[Hacksaw]

I have been in the car business for 30 years and Every retail customer i have done a deal with must provide a SS # at time of sale. Its required in Ohio AND the Federal Government requires an OFAC check to make sure the customer is not a terrorist or something. Below is a link if you're interested in exploring this. If you wont provide a SS # when buying a car with every dealer i have ever been associated with we would not sell you a car .

What Is an OFAC Background Check? - LegalClarity

An OFAC check is a federal requirement that must be included in every car purchase but an OFAC check does NOT require a social security number. It takes only a few seconds to complete the check.

Per-state requirements...who knows what they may require. You'll have to look that up for yourself.

If you are financing, you'll have to give your SSN but that is for a different reason.

If you pay cash (as in a bag of 100 dollar bills) of $10,000 or more for any car transaction, the dealer has to fill out an IRS 8300 form. That form does require an SSN (you can look the form up).

If you pay the full amount by personal check, IRS form 8300 is not required. If you pay by bank check over $10,000, the bank will submit a Currency Transaction Report for the check. This negates the need for IRS 8300 by the dealer (it would be redundant reporting) and they should know this.

The dealer is required to inform you if they submit IRS form 8300.

So, it is absolutely, positively, beyond any shadow of a doubt, possible to pay by check for your new 4runner without having to tell the dealer your SSN (unless some state law requires it). An OFAC will be filed by the dealership but it doesn't require SSN.

Saying they need SSN is just a tactic so they can prepare a financing deal even if you tell them you're paying cash (with the state law caveat you'll have to look up for your state of purchase).

Tell the dealership these words: I do not authorize you to pull my credit report.

 

[Desmolicious]

Tell the dealership these words: I do not authorize you to pull my credit report.

I said exactly that.

 

[coloradomarmot]

I had this when I bought my Pro. Didn't make a stink out of it because I knew there were 20 people willing to do it to get the MudBath.

I suspect it's also to make sure that my check won't bounce.

 

[Hacksaw]

Knowing your SSN--in and of itself-- doesn't give them any info on your current bank account balance, but I get your point about playing along due to the demand and they have leverage to ask for just about anything and can turn you away if you don't provide it. However, if they used that info and did a credit pull without your authorization (i.e., the dealership shows up as requesting a hard pull on your free credit report (could take a couple weeks to show up)), that's violating the FCRA and you can take legal action if you want. But they could just claim you did authorize it. Did you pay in full by check, or finance part of it?

 

[Scrappopatamus]

I would never provide my Social Security # to anyone without cause. If someone has your Social Security number# and basic info, it would be easy for someone to apply for a credit card or who knows what. I paid with a check and told them to have the paperwork ready when I arrived because I was running tight on time and had no interest in purchasing an extended warranty, paint sealant, tire warranty and so on. My Pro was parked in the blast off spot in their showroom and I signed the title app and due bill paperwork on a table next to the vehicle, got in the car and drove away. Opening yourself up to financial harm for a new vehicle is insane, plus why would you? When I purchased the Land Cruiser, I drove off the lot for a short spin and realizing it had no gas, I stopped at a gas station for a splash and my phone rang. While talking on the phone I accidentally filled the tank. I rang them and said I was going to run a few errands and I would be back later. Got tight on time and rang saying I couldn't make it back before they closed that evening. I took it back several days later when I dropped off a check and signed the paperwork. If I had to put up with the insanity some of you have, I wouldn't have purchased. I also deal with a dear friend who manages the dealership.

 

[Hacksaw]

Here's a video that covers most of the things discussed earler:
"Don't get tricked at the dealership with this social security number tactic!"

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