[Draper]

Supposed to pick up my M3 today, and the dealer says they need to run my credit application even though I am paying cash.

Personal check, cashiers check, wire doesn't matter - they run credit to verify my identity and 'protect the community'.

I've paid cash for other cars before and I don't recall this being a thing.

Anyone else?

[vj123]

I have never heard this before as well.

[CC M3C X]

Originally Posted by Draper

Supposed to pick up my M3 today, and the dealer says they need to run my credit application even though I am paying cash.

Personal check, cashiers check, wire doesn't matter - they run credit to verify my identity and 'protect the community'.

I've paid cash for other cars before and I don't recall this being a thing.

Anyone else?

I was able to circumvent this by showing them a statement with more than adequate funds to back the personal check that was written. Some dealerships may push back harder, not really sure how this varies from dealer to dealer.?.?

[jimbethesda]

Bunch of BS. Call their bluff and say you'll wire them the money. They'll then back down because if you've already paid, it will be harder for them to upsell you warranties.

[jimbethesda]

I've paid cash for my last 4 cars, while I had one that suggested a credit check, they backed down quickly

[Aalfred]

I had to do it just to reserve my I4 even though they said that the car wont be delivered for 9-12 months. They said "it is to protect us and make sure you can afford the car". I didnt agree and wanted to speak with the manager and he said its the "company policy". I didnt want to fight anymore and give them the impression that I had bad credit even though I pulled up my phone and showed them y 840 credit score, they wouldnt budge. So I guess it all depends on the dealership

[biglilsteve]

Originally Posted by Aalfred

I had to do it just to reserve my I4 even though they said that the car wont be delivered for 9-12 months. They said "it is to protect us and make sure you can afford the car". I didnt agree and wanted to speak with the manager and he said its the "company policy". I didnt want to fight anymore and give them the impression that I had bad credit even though I pulled up my phone and showed them y 840 credit score, they wouldnt budge. So I guess it all depends on the dealership

You can have perfect credit and still only afford a Toyota Corolla. I can attest to this.

[apexes]

Having worked retail before I can confirm it is not legally required, but it is likely their company policy. While you may be confident in your ability to pay for the vehicle, the dealer is trying to safeguard themselves against fraud, and most fraud cases stem from "cash" transactions. Every dealer operates independently, so just because one dealer makes an exception does not mean others will.

That said...the dealer, and any business conducting major transactions, is legally required to perform an OFAC check. Which is automatically run with a credit check, so for many dealers it's the normal process. However, an OFAC can also be attained without a SSN and without credit checks.

I personally wouldn't walk away over a credit check, but at the dealer I once worked for we would give the customer the option to leave the car at the dealer until funds have cleared. You could suggest that as an option to your dealer if you are adamant about no credit check. Hopefully, they'll be flexible with you but ultimately it's a dealers choice who/how they want to do business with, and same for you. Congrats on the M3 and GL!

[Draper]

Thanks for the feedback all.

I get that the dealer is trying to to protect itself, but I just want to avoid unnecessary hits on my credit. I feel like this is the kind of thing most people just go along with, so it's outside the norm for them to get pushback.

I'm sure there are other ways to satisfy their need to verify who I am, and have offered to provide whatever forms of ID they would like (drivers license, passport, utility bill, etc...) so we'll see what I hear back.

[Ninetres]

The dealer I purchased from last month said the only way to avoid a credit check would be ACTUAL hard cash (which they did not prefer), or wait to take delivery until all associated checks have cleared at their bank after deposit which they said can take up to 5-10 business days.

It was the dealerships FIRM policy. They said some fraudulent checks, and scams are so sophisticated these days they just have to protect themselves.

[Vinnrox250]

They tried to do the same thing on me just to order the car. I assured them it would be cash, and even offered proof of funds, which means nothing 6+ months before the car comes it. Could've spent it all. Lol. Ultimately, they didn't pull it.

I feel like other forms of ID, like you mentioned should more than suffice. Let us know what they come back at.

[jimbethesda]

Originally Posted by Ninetres

The dealer I purchased from last month said the only way to avoid a credit check would be ACTUAL hard cash (which they did not prefer), or wait to take delivery until all associated checks have cleared at their bank after deposit which they said can take up to 5-10 business days.

It was the dealerships FIRM policy. They said some fraudulent checks, and scams are so sophisticated these days they just have to protect themselves.

Not even a wire?

[robopp]

Originally Posted by Draper

Thanks for the feedback all.

I get that the dealer is trying to to protect itself, but I just want to avoid unnecessary hits on my credit. I feel like this is the kind of thing most people just go along with, so it's outside the norm for them to get pushback.

I'm sure there are other ways to satisfy their need to verify who I am, and have offered to provide whatever forms of ID they would like (drivers license, passport, utility bill, etc...) so we'll see what I hear back.

Can't you just pay for the car and only take delivery once the funds clear? No reason to run your credit then, right?

[jimbethesda]

Originally Posted by robopp

Can't you just pay for the car and only take delivery once the funds clear? No reason to run your credit then, right?

He already offered to wire the funds.

[rowdydaoudy]

I've never had this issue before when paying cash/cashiers check/wire. I would simply tell them you'll wire the money and take it once it clears, which isnt long at all. That way everyone is happy. Maybe even offer to show them proof of funds as well? Although, shouldnt be necessary if you tell them you'll wire.

[SpeedyATL]

I'd suggest paying in all pennies....you might need to rent a pick-up truck though.

EDIT: Check that, a dump truck.... Apparently 100 pennies weighs .55 pounds, so something like 40-45,000 pound capacity should do it.

[Biggie335]

When we ordered our X5 they did a CC at deposit even though we said we wouldnt need financing. Deposit was the normal 1k for the order.

Never heard of them running a CC at delivery if you arent financing though...weird.

[jimbethesda]

Originally Posted by SpeedyATL

I'd suggest paying in all pennies....you might need to rent a pick-up truck though.

EDIT: Check that, a dump truck.... Apparently 100 pennies weighs .55 pounds, so something like 40-45,000 pound capacity should do it.

This is like one of those interview questions.

[DocWeatherington]

Probably a company local policy.

Speak to the boss and just bring them a certified and or cashiers check from a bank. In either case those funds clear within a business day. No need to run your credit especial if your have provided insurance and a valid state issued id.

Often times a credit check shows an ability to pay via purchase history. But cash is cash and in the end all they care about is it clearing.

That is no different than a bank giving you a blank loan check.

You could always give them a refundable deposit of half now then pay the other half off...

Let us know how it works out.

[Draper]

Update.

I pushed back hard on this, and the only thing they were willing to do to avoid a credit check was to wait 7-10 days for funds to fully clear.

"Company policy, fraud, identity theft, blah blah blah." 🙄

Like my long-con plan was to wait on their list for a year (with my stolen name, obviously) before ultimately paying them with actual money for a car. 😂

I gave in and just let them run credit, and I now own an M3.

[jimbethesda]

Originally Posted by Draper

Update.

I pushed back hard on this, and the only thing they were willing to do to avoid a credit check was to wait 7-10 days for funds to fully clear.

"Company policy, fraud, identity theft, blah blah blah." 🙄

Like my long-con plan was to wait on their list for a year (with my stolen name, obviously) before ultimately paying them with actual money for a car. 😂

I gave in and just let them run credit, and I now own an M3.

7-10 days for a wire to clear??

[DocWeatherington]

Originally Posted by Draper

Update.

I pushed back hard on this, and the only thing they were willing to do to avoid a credit check was to wait 7-10 days for funds to fully clear.

"Company policy, fraud, identity theft, blah blah blah." 🙄

Like my long-con plan was to wait on their list for a year (with my stolen name, obviously) before ultimately paying them with actual money for a car. 😂

I gave in and just let them run credit, and I now own an M3.

Congrats...they doing any kick backs for financing with bmw


Could get the credit then pay the car off two weeks later. Not sure if there are any clauses but yeah the hit is minor in the grand scheme they fall off and bmw tends to only hit Experian anyway with pulls.