Car buying question...

[The Mystery Machine]

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.

No big deal on the Social, I did not even address that.

I am saying they do not NEED to do a credit check. You can wire the money from your bank, wait until the check clears to pick up the car, etc...

I am sure the dealership could work out selling a vehicle without a credit check.

 

[jlewisinsyr]

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

You should also bold the "cash" in the statement. There are specific transactions that are considered "cash" to the IRS and the 8300 filing and they apply for all transactions, not just those at auto dealerships.

 

[tvguy]

No big deal on the Social, I did not even address that.

I am saying they do not NEED to do a credit check. You can wire the money from your bank, wait until the check clears to pick up the car, etc...

I am sure the dealership could work out selling a vehicle without a credit check.

Didn't mean to offend, sorry. But the dealership wants the car off the lot today, and it can take several days for a check to clear. Not sure car dealerships are set up to accept wire transfers. Last car I bought for cash, the dealership had me sign a disclosure statement noting that the title would be sent to them, and withheld for 30 days AFTER my check cleared to make sure there were no financial issues, and if there was an issue, I was authorizing them to secure a loan for the car.
So the dealership needs to establish that you have enough credit to buy the car in case your check bounces or you stop payment. It's all legal and Standard Operating Procedure. When I bought my Chevy, I did see a guy get very upset at having to undergo a credit check for his new Corvette. Apparently he paid cash, as in $100 bills, and they STILL required a credit check.

 

[The Mystery Machine]

Didn't mean to offend, sorry. But the dealership wants the car off the lot today, and it can take several days for a check to clear. Not sure car dealerships are set up to accept wire transfers. Last car I bought for cash, the dealership had me sign a disclosure statement noting that the title would be sent to them, and withheld for 30 days AFTER my check cleared to make sure there were no financial issues, and if there was an issue, I was authorizing them to secure a loan for the car.
So the dealership needs to establish that you have enough credit to buy the car in case your check bounces or you stop payment. It's all legal and Standard Operating Procedure. When I bought my Chevy, I did see a guy get very upset at having to undergo a credit check for his new Corvette. Apparently he paid cash, as in $100 bills, and they STILL required a credit check.

You have to understand that unless it is a law it is NOT required.

This is something the dealership does and frankly the jokes on you because they say they are doing a credit check, charge you a fee and do NOT run the check.

It is called Fee scamming and something you should be aware of.