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

[oguruma]

I'm negotiating the purchase of a new 2023 GT. The dealer is in a neighboring state.

I told the dealer I'd be paying cash. He said he'd need to do a financing application. I asked why I'd need to do one if I am paying the entire price of the vehicle with cash.

His response was that he needed one to "prove that I'm the one spending the money." This sounds like BS to me....

How the hell would a financing application prove that "I'm the one spending the money"? Wouldn't the check from me be proof of that?

Is this just a ploy to talk to me into f&cking me with some dealer financing?

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[cerbomark]

I wouldn't t care, your paying cash so who cares. Dealer BS stuff.
Credit rating lately is the lower the better deal, LOL, at least for mortgages.
just don t finance if you don t want to. guess their just covering their a$$ so if you buy/order and the car is ready they KNOW the money is there if your cash comes up short.

 

[jacknifetoaswan]

They're probably incentivized to get a certain number of applications and approvals. There's zero reason they need to do a credit check. All your data will be part of the contract.

I'd refuse to do it and see if they're willing to walk away.

I wouldn't t care, your paying cash so who cares. Dealer BS stuff.
Credit rating lately is the lower the better deal, LOL, at least for mortgages.
just don t finance if you don t want to. guess their just covering their a$$ so if you buy/order and the car is ready they KNOW the money is there if your cash comes up short.

And take an unnecessary hit on your credit? Hell no.

JR

 

[Mach1man]

Sounds a bit fishy to me. When I bought my 2021 Mach 1 in New York I told dealer I'm paying cash no issues at all. Sticker, Title, Dealer Fee, Tax showed up with Bank check ...deal done

 

[cerbomark]

maybe they do have to show some sort of ID paper trail with that kind of cash transaction. Each state may be different. not hard to research that. I wouldn't t stress over it one bit.

 

[jacknifetoaswan]

maybe they do have to show some sort of ID paper trail with that kind of cash transaction. Each state may be different. not hard to research that. I wouldn't t stress over it one bit.

You have to show your driver's license, and they make a photo copy of it. This 100% smells like the sales guys getting a kickback on credit applications and approvals.

ETA: https://www.experian.com/blogs/ask-experian/do-you-need-credit-to-buy-a-car-with-cash/

A dealership needs your permission to run a credit score and report. They may ask you for it as part of the sales process, so they can find out what kinds of financing you are eligible for and therefore how much you can afford to pay for a car. Dealers often make money from the financing they arrange, so they have an added incentive to talk you into a loan or lease.

A dealership might falsely cite the Patriot Act as a reason to run your credit report. But federal anti-money-laundering regulations do not require a dealership to pull your credit on a cash transaction. You may, however, be required to fill out IRS Form 8300 if you make a cash or other lump-sum payment in excess of $10,000.

JR

 

[oguruma]

I wouldn't t care, your paying cash so who cares. Dealer BS stuff.
Credit rating lately is the lower the better deal, LOL, at least for mortgages.
just don t finance if you don t want to. guess their just covering their a$$ so if you buy/order and the car is ready they KNOW the money is there if your cash comes up short.

Maybe, but will a credit application actually show whether or not "the money is there?" Does a credit application show how much cash is sitting in my bank account?

 

[cerbomark]

Maybe, but will a credit application actually show whether or not "the money is there?" Does a credit application show how much cash is sitting in my bank account?

NO

 

[jacknifetoaswan]

Maybe, but will a credit application actually show whether or not "the money is there?" Does a credit application show how much cash is sitting in my bank account?

A credit check only provides information on your outstanding loan-to-value (credit balance), credit score, defaults and/or late payments, etc. It has NO insight into your bank accounts or liquid assets.

ETA: A money order or cashier's check draws on the account immediately, so there's no need to validate that "there's money there." You're not going to be able to write a personal check, for this reason. It's the same reason you can't write a personal check for a mortgage, and a closing attorney requires a cashier's check or ETF.

JR

 

[K4fxd]

Last new truck I bought was with cash. I did not fill out any credit applications.

 

[oguruma]

NO

So then this sounds like total BS. I could have a billion dollars or zero dollars. I can't fathom how a financing application is going to have any bearing on that.

 

[cerbomark]

well it shows a history of finance.
either let them run it or tell them NO and walk if they insist.
I know what I would do.
bought m1 cash and can t even remember if they ran me or not.

 

[cerbomark]

I don t know if it s still true or in what states but I remember if you bought cash the IRS gets notified too. just part of the rules.

 

[ZXMustang]

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

 

[Finally21]

Paid cash for my 21 GT, no credit check. (MN)

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