Buying new car cash: Dealer wants a credit check/financing application?

[oguruma]

This is pretty normal now. They want to have a signed credit app because if you walk with the car and your check bounces or something happens, worst case they can ram you through with financing and still get paid for the car. Some dealers nowadays require at least one pull by their FI guy just to make sure if you do try to scam them, they can get you financed and not be screwed. It sucks, but its today's business with all the ways to fake a valid check.

Now if you are walking in with actual cash, like a bag of money, then i'd say no way homie you got the green now give me the machine...lol

I'm pretty sure if the check bounces they can't just write a loan in my name without my permission, lol.

The last time I bought a car was about 10 years ago. I also paid cash. I negotiated the deal. I took it home (this was a local dealer) and brought them a personal check the next day. They said they would take a personal check, but they don't sign over the title until the check clears, which is understandable.

There was never any discussion pertaining to a financing application.

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[ZXMustang]

I'm pretty sure if the check bounces they can't just write a loan in my name without my permission, lol.

The last time I bought a car was about 10 years ago. I also paid cash. I negotiated the deal. The took it home (this was a local dealer) and brought them a personal check the next day. They said they would take a personal check, but they don't sign over the title until the check clears, which is understandable.

There was never any discussion pertaining to a financing application.

You gave them permission by signing the credit app. This is how it works. They need a backup plan if you try to scam them or something with your payment method goes south. Its not uncommon.

 

[cerbomark]

some dealer take checks and some don t....
they make the rules.
2 choices I see. I don t see the issue???

they ll probabaly get credit for each app....

 

[oguruma]

You gave them permission by signing the credit app. This is how it works. They need a backup plan if you try to scam them or something with your payment method goes south. Its not uncommon.

Is that really how it works? If I sign the credit application, I'm agreeing to any loan being originated at the dealer's descretion at any point in the transaction? lol

 

[ZXMustang]

Is that really how it works? If I sign the credit application, I'm agreeing to any loan being originated at the dealer's descretion at any point in the transaction? lol

Not necessarily but it gives them the upper hand if they need to force you into one. Its been done many times before. Im not saying it right, but they are not amateurs at covering their interests in the event someone tries to scam them or cant make good on a car deal they've already taken delivery of. You'd be surprised how easy it is for dealers to get you locked into a loan if they need to. This is why they always want a signed credit app no matter what.

 

[cerbomark]

is this an ordered car or on the lot car??

 

[oguruma]

is this an ordered car or on the lot car??

It's on their lot

 

[K4fxd]

It might be cause you are out of State.

 

[Balr14]

I always pay cash and haven't bought a car locally in 20 years. I typically do a cashiers check or some type of wire transfer. I have never been asked to do a credit application. I'd walk away, it just doesn't smell right.

 

[PhillyMike]

Maybe he's going to twist your arm to take the 0.0%/36 Mo financing Ford is offering.

The horrors!

 

[K4fxd]

I'd make the best deal show up with a certified bank note and leave with the car. I would not fill out the credit app. But I am a stubborn SOB.

 

[MiamiGT350]

I would just tell them no thanks and walk. There is no beneficial reason to you, the purchaser, to provide any financing information.

Also, applying for credit approval is not the same thing as accepting the loan. You apply for credit approval and they respond with terms and interest rate(s). You must then accept said terms on the sale documents.

 

[K4fxd]

Maybe he's going to twist your arm to take the 0.0%/36 Mo financing Ford is offering.

This, but I like to own my stuff, free financing or not.

 

[PhillyMike]

This, but I like to own my stuff, free financing or not.

I totally get it. I declined 1.9% on the Durango back in 2015 and paid cash because I hate debt.

But today the short term interest rate yield is too rich to not take a 0% offer and bank the interest.

 

[cerbomark]

I really think it s got more to do with a paper trail on a large cash transaction and identifying you with the most information, I m sure they have reporting rules they must abide by when taking in cash, just my guess.

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