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

[cerbomark]

so is the OP buying the car. it should be settled by now either way?

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[Blwnsmoke]

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?

They will pull your credit score and see your debt owed (balances etc). There is ZERO reason to pull your credit and it will actually drop your score by having your credit pulled.

Absolutely refuse to have it done. A certified check from your bank is all they need.

 

[Oakley]

They will pull your credit score and see your debt owed (balances etc). There is ZERO reason to pull your credit and it will actually drop your score by having your credit pulled.

Absolutely refuse to have it done. A certified check from your bank is all they need.

if your credit is good it doesn't matter. i'm fine with someone dinging my credit as part of a larger strategy to save me thousands on a car deal.

 

[Blwnsmoke]

if your credit is good it doesn't matter. i'm fine with someone dinging my credit as part of a larger strategy to save me thousands on a car deal.

It still drops your score by having it pulled regardless of whether it is good or not and that inquiry stays there for 2 years From the date it is pulled.

Still zero reason to do it.

 

[Oakley]

It still drops your score by having it pulled regardless of whether it is good or not and that inquiry stays there for 2 years From the date it is pulled.

true, they shouldn't pull credit unless you're talking finance. the right move is "we can talk about payment method later, lets get the deal done first".

 

[BULLITTGUY]

I am currently considering purchasing a new 2023 F-150. I can buy it for x-plan price (saving me $3649 off MSRP) and also have a $2000 off code that Ford sent me that can be combined. Plus, if I do x-plan, I can get another $1000 off if I finance through Ford (0% for 36 months). I will put down all but $2000 of the cost of the truck, finance those $2000 to get the $1000 rebate, then turn around and pay off my loan the following month, because I don’t like to have debt. So sure, let them run my credit for the loan if it saves me an additional $1000. I do this all the time with my new vehicle purchases (this will be my 6th time since 2020) and my credit score is through the roof.

 

[wynand32]

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.

Yes, that's true in all states for cash transactions of $10K or more. And that's literally cash, as in dollar bills. Not personal checks, cashier checks, or any other money drawn from a bank.

But that has nothing to do with the original question.

 

[mustangpegasus51]

They probably just want to do a check to see if they can upsell you on things like extended warranties. Maybe not, but that seems likely. Maybe you have enough for the car, but not the out the door price they have planned for you.

 

[FullOutPwr]

I’m in WA state and recently did the same in OR. Dealer told me all PNW dealers now require ID verification through a credit check due to the amount of cash buyer fraud that’s been happening in WA and OR

 

[Tucker80]

Personally I wouldn't even consider the credit app if you're paying cash. I just bought a car last month cash. Dealer did ask to see a screen shot of my account for verification of funds. Pulled it up on my phone and proceeded to write a personal check after they stated they couldn't do an EFT or ACH transfer. Seemed strange to me that a modern dealership didn't really have an easier way to accept full payments on site.

 

[Q Tip]

This reminds me of another story from my vast archived way back machine.....

Late 70's. My buddies dad is a blissed out hippie, lives in a schoolbus (my buddy was born in it), makes a living importing cheap oil paintings by the roll from China and sells them to businesses to decorate their office buildings.

He saves up enough dough to buy a new Cadillac....cash.

He gets his girlfriend to drive him into town in her Flower Power bug. He gets out, walks in....he's dressed in a torn t shirt, cut off corduroy shorts, no shoes. No one will acknowledge him.

Exasperated, after a few minutes of being ignored, he whips out a stack of hundred dollar bills 3 inches thick, holds them aloft, and says," Anyone want to sell me a God dam Cadillac??"

It was dark green with a green paisley interior.

 

[YULQQKN4]

They will pull your credit score and see your debt owed (balances etc). There is ZERO reason to pull your credit and it will actually drop your score by having your credit pulled.

Absolutely refuse to have it done. A certified check from your bank is all they need.

A single inquiry alone might possibly drop your score 1 point for a month or two max....

If you are worried about 1 point of credit score, then financing a car is least of your worries

credit inquiries affect you credit the least....utilization of credit and ontime payments make up the majority of it.

If you're an 805 score....there is no need to worry about your score dropping to 803, when in all fairness, it will probably go back up to 805 in 30-45 days.

I am currently considering purchasing a new 2023 F-150. I can buy it for x-plan price (saving me $3649 off MSRP) and also have a $2000 off code that Ford sent me that can be combined. Plus, if I do x-plan, I can get another $1000 off if I finance through Ford (0% for 36 months). I will put down all but $2000 of the cost of the truck, finance those $2000 to get the $1000 rebate, then turn around and pay off my loan the following month, because I don’t like to have debt. So sure, let them run my credit for the loan if it saves me an additional $1000. I do this all the time with my new vehicle purchases (this will be my 6th time since 2020) and my credit score is through the roof.

this guy knows what he's talking about!!!!! save $1000 for a single inquiry on your credit report...without a doubt. And personally with todays rates....I would not pay cash at all for the 36 months at 0%....I would rather take the money that you were going to put down and throw it into a high yield savings account. Again....that's me personally, everybodys financial situation is unique to them, when in doubt consult a financial advisor!

 

[cerbomark]

A single inquiry alone might possibly drop your score 1 point for a month or two max....

If you are worried about 1 point of credit score, then financing a car is least of your worries

credit inquiries affect you credit the least....utilization of credit and ontime payments make up the majority of it.

If you're an 805 score....there is no need to worry about your score dropping to 803, when in all fairness, it will probably go back up to 805 in 30-45 days.

so much fuss about nothing. I d have had the car ho me already if I wanted it. Want to make a point ? well start searching for another car then.

 

[K4fxd]

Everything I have is paid for. Including my home. Yes zero % makes it nice to finance but interest rates are still less than inflation.

It is my car, not the banks and that means more to me than a few thousand that might really be nothing taking account of inflation.

 

[K4fxd]

so much fuss about nothing.

Yea, we get your point. Good for you. They are not running my credit if I'm paying cash.

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