Car buying question...

[WDWBarb]

Yesterday I stopped in at a local dealer to look at a car. I had a possible trade and the salesman went to work up a quote.

First, a vent - I did all of the talking but DH was with me. I buy all of the cars because he has no desire to negotiate or deal with salespeople. But this sales man directed all of his questions to DH. DH kept referring him back to me but he'd always turn back to DH. Not a good sign.

But, to the point - some of the questions he was asking DH were obviously in regards to income, job, etc. I cut the guy off and told him we wouldn't be financing any purchase. He told me it was "routine.". A bit later he asked DH his SS# and I told him again that he wouldn't need a credit check because we were not financing anything. He said it was "required to start a deal.". He walks away for a bit and tells us he's just waiting on a credit check?? Um.. What part of cash don't you understand? We left at that point because it just seemed so weird.

Is this normal? Do they need credit checks on cash deals??

 

[golfgal]

Yesterday I stopped in at a local dealer to look at a car. I had a possible trade and the salesman went to work up a quote.

First, a vent - I did all of the talking but DH was with me. I buy all of the cars because he has no desire to negotiate or deal with salespeople. But this sales man directed all of his questions to DH. DH kept referring him back to me but he'd always turn back to DH. Not a good sign.

But, to the point - some of the questions he was asking DH were obviously in regards to income, job, etc. I cut the guy off and told him we wouldn't be financing any purchase. He told me it was "routine.". A bit later he asked DH his SS# and I told him again that he wouldn't need a credit check because we were not financing anything. He said it was "required to start a deal.". He walks away for a bit and tells us he's just waiting on a credit check?? Um.. What part of cash don't you understand? We left at that point because it just seemed so weird.

Is this normal? Do they need credit checks on cash deals??

A credit check shouldn't be required for a cash deal. I would have told the salesperson after he kept talking to DH that you will be dealing with ME or no one. If he continued to talk to your DH I would have walked out of the dealership.

Several years ago we needed to buy a new mattress for one of the kids. My Dad happened to be visiting and he has a truck so he came along. The salesperson kept asking my Dad questions and finally my Dad said "look buddy, I am just the truck driver, SHE is buying the mattress so if you want to make the sale, you better talk to her" . I had done business in that store before and knew this guy was pretty much a jerk but the woman I usually worked with wasn't there that day. After that day I never had a problem with that guy again.

 

[The Mystery Machine]

Yesterday I stopped in at a local dealer to look at a car. I had a possible trade and the salesman went to work up a quote.

First, a vent - I did all of the talking but DH was with me. I buy all of the cars because he has no desire to negotiate or deal with salespeople. But this sales man directed all of his questions to DH. DH kept referring him back to me but he'd always turn back to DH. Not a good sign.

But, to the point - some of the questions he was asking DH were obviously in regards to income, job, etc. I cut the guy off and told him we wouldn't be financing any purchase. He told me it was "routine.". A bit later he asked DH his SS# and I told him again that he wouldn't need a credit check because we were not financing anything. He said it was "required to start a deal.". He walks away for a bit and tells us he's just waiting on a credit check?? Um.. What part of cash don't you understand? We left at that point because it just seemed so weird.

Is this normal? Do they need credit checks on cash deals??

Ask him point blank the reason for the credit check in black and white, tell him to produce the document. If it is a state law, then OK.

If he cannot provide the laws tell him to take his credit check and stuff it.

DH thinks he wants to charge you a credit check fee if it is a NOT a law, like a "fee scam". Fee scams are real and dealerships will not even run your credit check, they are just charging you and lying.

So bottom line if this is a NOT a law then you are getting scammed. Obviously if you are paying cash they are not going to run a credit check....duh.

 

[monkeybug]

They don't need your credit report for a cash deal, and financing doesn't need to be discussed until you want to discuss it.
We were at Carmax yesterday getting an appraisal for our Yukon (which was $1,000 over what my husband expected to get...they really do give you a fair amount on a trade) and shopping for minivans. When they asked about financing we told them we didn't want to talk about that just yet, and they never brought it up again. There was zero pressure, when we left the girl just handed us a card and told us to call or stop by if we needed any more assistance.
My husband said he was tempted to by a van from them based on experience alone, even if we found something cheaper on another lot.

 

[dakcp2001]

The fact that you kept after him about why he needed it (when he clearly doesnt) just means he is a terrible salesman and you should get another. The fact that he kept talking to DH when you are the buyer is red flag number 2.

He obviously is not listening to you or taking you seriously. He wants to see how much you make and how much he can squeeze out of you. Tell him to take a hike and get someone else. He is an idiot. Walk away before you get ripped off and he plays stupid.

 

[Swan4Me]

Maybe he just wanted to make sure you didn't just rob a bank

 

[shortbun]

OP, I'd call the owner or manager of the dealership and complain. I might even call the BBB. Having extra credit checks isn't good for your credit. Never give your social security number to anyone if you're not ready to buy something. Find a salesperson who treats you with respect.

 

[monkeybug]

Maybe he just wanted to make sure you didn't just rob a bank

I do think that they take your social for any cash purchase over $10,000, but they shouldn't need a credit check.

 

[The Mystery Machine]

I do think that they take your social for any cash purchase over $10,000, but they shouldn't need a credit check.

Depends on the state you live in. You need to check local laws.

 

[jlewisinsyr]

No clue what state the OP is in, but when talking about a sale, there is no way, I would be providing my SS# to anyone unless I was seeking financing, there is zero reason to.

There are some unique situations with paying cash (literal form) and cash equivalents (ie. money orders, etc.) at the Federal level due to money laundering (transactions exceeding $10,000), but if you are getting a cashiers check from a bank, this should be an issue, ever.

 

[The Mystery Machine]

No clue what state the OP is in, but when talking about a sale, there is no way, I would be providing my SS# to anyone unless I was seeking financing, there is zero reason to.

There are some unique situations with paying cash (literal form) and cash equivalents (ie. money orders, etc.) at the Federal level due to money laundering (transactions exceeding $10,000), but if you are getting a cashiers check from a bank, this should be an issue, ever.

Yep. I looked on the FTC (Federal Trade Commission) site to try and find something....nothing yet.

I honestly believe that you are being "fee scammed". This is like standard ops for them. They charge you the fee to run the checks and they pocket the money.

 

[Uncle Remus]

Yesterday I stopped in at a local dealer to look at a car. I had a possible trade and the salesman went to work up a quote.

First, a vent - I did all of the talking but DH was with me. I buy all of the cars because he has no desire to negotiate or deal with salespeople. But this sales man directed all of his questions to DH. DH kept referring him back to me but he'd always turn back to DH. Not a good sign.

But, to the point - some of the questions he was asking DH were obviously in regards to income, job, etc. I cut the guy off and told him we wouldn't be financing any purchase. He told me it was "routine.". A bit later he asked DH his SS# and I told him again that he wouldn't need a credit check because we were not financing anything. He said it was "required to start a deal.". He walks away for a bit and tells us he's just waiting on a credit check?? Um.. What part of cash don't you understand? We left at that point because it just seemed so weird.

Is this normal? Do they need credit checks on cash deals??

Routine in my experience is you pick out the vehicle, they price it 'n then they discuss financin' 'n my tip to you is to not walk in 'n tell 'em you wanna pay in cash, they'll jack up that price to cover their losses in finance charges.

Let 'em think you're gonna finance, they'll give you a better deal, then at the end, whip out your checkbook.

 

[WDWBarb]

Thanks to all for your responses. I thought something didn't smell quite right. I'm used to being disrespected by car sales people (I once was at the table, ready to sign a deal when the manager came out and said I needed to go home and get my DH to make sure he was ok with the purchase - I simply stood up and walked out).

But running a credit check was just stinky. I know they make back-end dollars with financing, but we weren't talking about much money out-of-pocket with my trade. And they wanted my trade pretty badly (it was a Prius, which are very difficult to get now with the unfortunate situation in Japan) so the whole thing was just weird.

I'm going to call and speak with the GM on Monday, to see if this really is their standard process.

Oh, and I'm in Kentucky.

 

[jlewisinsyr]

I'm going to call and speak with the GM on Monday, to see if this really is their standard process.

Oh, and I'm in Kentucky.

To the best of my knowledge, KY is not a state that requires credit checks for cars (granted I'm not aware of any state that requires that anyway), regardless of amount, again assuming the transaction is not being paid for with literal cash or a cash equivalent.

 

[Kimberly]

Yesterday I stopped in at a local dealer to look at a car. I had a possible trade and the salesman went to work up a quote.

First, a vent - I did all of the talking but DH was with me. I buy all of the cars because he has no desire to negotiate or deal with salespeople. But this sales man directed all of his questions to DH. DH kept referring him back to me but he'd always turn back to DH. Not a good sign.

But, to the point - some of the questions he was asking DH were obviously in regards to income, job, etc. I cut the guy off and told him we wouldn't be financing any purchase. He told me it was "routine.". A bit later he asked DH his SS# and I told him again that he wouldn't need a credit check because we were not financing anything. He said it was "required to start a deal.". He walks away for a bit and tells us he's just waiting on a credit check?? Um.. What part of cash don't you understand? We left at that point because it just seemed so weird.

Is this normal? Do they need credit checks on cash deals??

Walk away from the dealer, or talk to a different salesperson. Definitely looking to make you finance the car because they make a lot of money over the years doing that. I financed my first car I bought, and that was it.

 

[lsyorke]

I've shopped for many cars on my own and had the "bring your husband in when you're ready to purchase" comment. My response is always the same...."I'll bring him in if you allow him to test drive the car. Oh, he's blind by the way". Then I leave the dealership!

There are "female friendly" dealerships out there.

 

[The Mystery Machine]

To the best of my knowledge, KY is not a state that requires credit checks for cars (granted I'm not aware of any state that requires that anyway), regardless of amount, again assuming the transaction is not being paid for with literal cash or a cash equivalent.

That makes sense.

OP, shop elsewhere. You are being fee scammed and it is just not right.

Oh and SELL YOUR CAR private party!!! Use Craigslist or Autotrader. If that is a "hot car" then you can get top dollar.

 

[bicker]

I was advised strongly to give no indication as to whether I'd be financing the purchase before settling on a price for the vehicle. It does not benefit the buyer, one bit, to provide any information to the dealer that isn't absolutely required. I'm prepare to say that point-blank: "Thanks, but I'm going to pass on allowing you to do a credit check, or giving you any personal information that would make it possible for you to do so, until we decide that we want to make a purchase from you." I wouldn't defend it; I'd simply state it.

 

[Disney Doll]

I'd call the GM of the dealership, tell him how his salesperson behaved and tell him that's why you WON'T be purchasing a car from that dealership.

I hate buying a car more than anything esle in the world.

 

[tvguy]

Depends on the state you live in. You need to check local laws.

State laws have nothing to do with it, the IRS REQUIRES any business accepting $10,000 or more in cash to get a social security number and report the transaction to the IRS. It's form 8300, here's a link.
http://www.irs.gov/businesses/small/article/0,,id=148857,00.html

And regarding paying by cash, if it is in reality a check, not currency, you do need a credit check because the dealership is just protecting themselves in case your check bounces. I can understand that, they're letting you drive off the lot with a vehicle worth on average $30,000.