[jliltd]

I paid cash for my BRZ. However, the salesman kept saying I had to sign a credit form through Experian or one of the other two credit outfits. I explained I wanted nothing to do with it. The salesman said that the dealership is required to establish my identity and by law had to run me through a credit bureau, but only as an identity check. So when they did the old "take you back to the finance guy for the paperwork" thing the first thing the finance guy says is I can get you a great rate. I responded that I was paying cash, as explained fully to my salesman and as put on my order. I also refused to sign the form they had to allow the dealer or Subaru contact me. I basically "X"'d it out and initialed it. I don't just sign what they put before me I take the time to look it over.

So for the last few weeks I've been thinking about the ID thing. I have NEVER had this done before and I do buy cars quite a bit. I think I got BS'd about the credit bureau identity alleged requirement. That's gotta be a load of crap. Right? I haven't filled out my Subaru survey due to my uneasiness about this.

Does anybody know if it is true a buyer must establish his identity through a credit check type operation? I am skeptical but with the current state of affairs in Washington DC I'm not sure what to think these days. I would be pissed if the dealer just puts all buyers through a credit check even if they're paying cash. And I will say as much on my survey if my gut feelings about this are true. And if so I only have myself to blame (caveat emptor and all that sort of thing). If not I learned something new.

 

[greymouser]

I paid cold, hard cash for my BRZ, and I did not have to do a credit or background check. I sincerely doubt the dealership is required by law or Subaru to run background checks. If they are, it's their prerogative and their cost.

My hunch is that they scammed you into getting a credit check so that they could offer you financing. That's not the worst thing in the world, but you don't want to have too may credit checks run in a short time window -- it will effect your credit score for a while.

I would be mildly pissed at the dealer, but I also wouldn't lose sleep over it -- especially if the car is already yours.

 

[BRZ Driver]

I have NEVER had this done before

Me, either.

and I do buy cars quite a bit. I think I got BS'd about the credit bureau identity alleged requirement. That's gotta be a load of crap. Right?

Sure sounds like it.

I'm unable to think of any way in which the dealership could employ this information to their advantage, though.

Can you think of anything?

I haven't filled out my Subaru survey due to my uneasiness about this.

Ahh. Good man. Apparently, those surveys are EXTREMELY important to the dealership. They really want all 10's.

Teach 'em a lesson, if only for their intrusive invasion of your privacy.

I wonder if our friend, Shane, can shed some light on this practice. He's in Canada, though.


EDIT: I checked that OFAC business, and it appears that this may indeed be legitimate, especially if you brought actual CASH to the table. So, it would be unfair to punish the dealer via the Subaru survey. They were likely just doing what they're supposed to do.

 

[stormrider77095]

It is true that dealership have to run what they call OFAC since after 911 they require to do that to all customer that paying the vehicle in cash, just to make sure that your money is not laundry and not supported by the terrist.The dealership do not need your social security to run the OFAC just name only. Yes they do have to check your back ground and no they do not need to have ur SS to do so. the reason i know this is because I'm the finance manager for Ron Carter Toyota in Alvin /Texas. please google what OFAC mean if you want to know more about it. Sorry about your finance guy at the dealership that you bought your vehicle he is just tryingto do his job and try to convert you from paying cash to finance the vehicle that is all. Have fun with your new BRZ!!!!!

 

[greymouser]

please google what OFAC mean if you want to know more about it

Office of Foreign Assets Control - Wikipedia, the free encyclopedia
http://www.treasury.gov/about/organ...s/Pages/Office-of-Foreign-Assets-Control.aspx

 

[SubiYota]

Yes, they have to just to verify your identity. I had to do the same. I had a friend that did the same at a different dealership and a different car.

 

[jliltd]

I'm a Laissez-Faire typical West Texan. This is right up there with the cash for clunkers program (ridding the nation of non-trackable vehicles) and the Patriot Act. I wrote a personal check. It's time to back our gubmit' down, boys. Sheesh. Sorry about the rant.

And most importantly thanks for getting me straight on what's up with the OFAC (pronounced Oh F*#*k!). I can now be fair to my dealer on the survey.

 

[WRBlue BRZ]

Yes. I was told the same thing when I paid for mine in full. Thanks for clearing this up.

 

[Subaru Shane]

I wonder if our friend, Shane, can shed some light on this practice. He's in Canada, though.

We just don't accept cash, period. I will take deposits in cash of a maximum of $1000.00.

We aren't allowed to run an identity check at the dealership, so we don't take personal cheques AT ALL.

HINT TO 'CASH" buyers - Go and get a certified cheque, money order or bank draft when paying for a car in full. A personal cheque?? Seriously? You aren't buying groceries...

I don't mean to sound like a tool. Correct me if I misunderstood this.

 

[kappaknight]

Who pays for groceries with a check? It's so much easier to just swipe and earn points; plus you won't hold up the line.

 

[s2kbobby]

We just don't accept cash, period. I will take deposits in cash of a maximum of $1000.00.

HINT TO 'CASH" buyers - Go and get a certified cheque, money order or bank draft when paying for a car in full. A personal cheque?? Seriously? You aren't buying groceries...

Many places don't accept cheques for groceries or other purchases. I don't use cheques for groceries, that's where I use cash or a bank card.

I paid for my BRZ by personal cheque, and Frontier Subaru accepted that, as did the dealers with all my previous car purchases. They obtained plenty of identity information through the purchase procedure.

Perhaps Winnipeg, being a little smaller than Sarnia has a more trusting atmosphere? Or the fact that my wife and I, being both over 50 brought some credibility to the purchase. Either way some of us still take cheques in Canada.

 

[brzrep]

From my understanding, the OFAC is done without you knowing and it's a name-basis only. Correct me if I'm wrong, stormrider, but if you paid "cash," you can do that using a bank/certified check and the dealer does not need to do a background check as the bank would have done that. If you're paying "cash" using 20's and 100's bills with the total cash amount over $9999, then you DO have to provide social sec # and sign a consent form of some sort.

 

[BRZfan]

For reference:
It is my understanding (altho I migh be wrong) that the U. S. government requires that any cash deposit to a bank at or over $10,000 or a cash transaction to a car dealer (and probably some other types of $10,000 transactions as well like farm tractors) must be reported to them, the USA government.

Also, I might add, this federal requirement, has been in effect well before 911

Either way, BRZREP is correct and, in my opinion, paying cash without the use of a bank document is stup... not smart.

 

[BRZfan]

Many places don't accept cheques for groceries or other purchases. I don't use cheques for groceries, that's where I use cash or a bank card.

I paid for my BRZ by personal cheque, and Frontier Subaru accepted that, as did the dealers with all my previous car purchases. They obtained plenty of identity information through the purchase procedure.

Perhaps Winnipeg, being a little smaller than Sarnia has a more trusting atmosphere? Or the fact that my wife and I, being both over 50 brought some credibility to the purchase. Either way some of us still take cheques in Canada.

In many communities there is common knowledge. Car dealers know banks personally and all it take is a phone call. In your case, the dealer probably had some substantive idea of your credit and/or financial worthiness. Many others do not have this recognition especially if it is a young buyer without much work or credit history. Dealers, as are most good business people can, if they want, inititate contracts, for instance, simply on a handshake and follow up later with documentation.

 

[BRZfan]

I paid cold, hard cash for my BRZ, and I did not have to do a credit or background check. I sincerely doubt the dealership is required by law or Subaru to run background checks. If they are, it's their prerogative and their cost.

My hunch is that they scammed you into getting a credit check so that they could offer you financing. That's not the worst thing in the world, but you don't want to have too may credit checks run in a short time window -- it will effect your credit score for a while.


I would be mildly pissed at the dealer, but I also wouldn't lose sleep over it -- especially if the car is already yours.

Your "hunch" is in error. See federal rugulations. Ask you financial advisor or a CPA.

 

[BRZfan]

"I basically paid cash for my BRZ".

"Basically"? What does THAT mean? It's like saying to a judge in traffic court: "I basically was not speeding, judge, honest".

 

[jliltd]

Because. A cash deal around here means no financing, whether paid by personal check, business check, cash, wire transfer or barter. I was doing a cash deal, which in the parlance of auto buying means no finance. It doesn't literally mean the counting of stacks of currency although that does occasionally happen. Be that as it may I will edit the first post removing the word "basically" for you. I guess I could have said I did a cash deal rather than paid cash. The semantics and grammar corrections aren't germane to the point of the post.

 

[jliltd]

One thing I do find revealing by some of the answers in this post is that there are car dealerships that can't trust not only their customers but their own business department. We are not buying groceries without knowing the checkout gal's name. We're doing some serious paperwork and establishing a relationship (as shallow as it truly is) between the buyer and the salesman. This isn't Craigslist. Around here a man's hand shake is his word and is considered golden. Maybe that comes off as old fashioned. Or maybe by merely thinking it is old fashioned in it's own way highlights the fact that as time goes on societies start to trust individuals less and less. If Shane's finance department can't figure out how to make a check good (or doesn't want to) before a buyer leaves with the keys then I'd say that's a weak point in their operation. If they only want a cashier's check that's okay too, it just puts one more stop in their customer's itinerary for the day. Maybe Canadian banks operate different enough from US banks that checks aren't as verifiable. I don't know.

I am well aware that when a transaction is made by currency in the US for $10K or more there is an IRS form to fill out. That includes withdrawing your own funds from your own bank account. If a teller touches it the form comes out. Been that way since the 1980's. That form does not apply for non-currency transactions. I once withdrew a very large sum from my credit union for a large purchase (and got "the form"). I flew my own airplane from Texas to California for the transaction with stacks of bills in paper bags. As I passed the Santa Catalina mountains near Tucson I wondered what the rumors would be if we crashed into a mountain and had the wreckage scene strewn with bills.

Yes. I Paid by check for my BRZ. I almost always do with automobile purchases. If you want to take some extra time to clear it or get a bank verification knock yourself out. I'm willing to accommodate any reasonable request. Most dealers here will let a potential customer take a new ride home alone to show the family (a brilliant sales strategy by the way). I don't get what the difference would be cutting loose with the car for an overnight test drive with no security verses letting somebody take it home after signing a contract securing the sale with a personal check.

 

[Subie]

I paid cash and did not have to submit to any sort of background check. I paid with a personal check and the dealership simply called my bank to verify the availability of the funds. I also traded in a vehicle though, so having the title for it may have given them some peace of mind as to my identity.

 

[RL_BRZ]

If you have no credit history and applying for car financing dealer offer. Does no credit history can be affect to denied your car financing application? Because this is something that I am worried about right now. I am just working for 4 months right now and my current salary is enough to pay the downpayment and monthly payment of the car if they will approve my application.