If I pay cash/personal check/or cashiers check for my truck when it comes in........ I was told by my fleet guy that before taking delivery, he is required by the state of California to run a bureau on me for identification verification purposes. He has to have this on file if ever audited by DMV. I don't see why or how a credit check has anything to do with my identity.



Is this true? I told him I do not want any inquires into my credit because I'm in the process of buying some property. My lender told me no inquires.



Any help on this guys and gals?


Thank you......http://www.dieselplace.com/forum/smileys/Big Smile.gif

Humm sounds fishy to me, my parents have purchased at least 4 cars that i remember in cash without having their credit checked. There is NO reason to have a credit check run. tell him no deal if he runs it, I am on your side, no one needs to know anything about you other then your Drivers license and insurance card.


hope this helps

Not sure about credit check but I think if you pay anything over $10,000 cash they must report to IRS. http://www.dieselplace.com/forum/smileys/Cry.gif


Diesel Dragon http://www.dieselplace.com/forum/smileys/Cool.gif

NO that is not true. If you pay cash or however you pay as long as no financing is done they can't contact any credit corps for info. All they need is to talk to the bank to verify funds and you should be on your way. If you do buy it this way tell them (or you do it) to write a letter that both parties sign that states they will not and DO NOT have your permission to contact any credit bureau for info on you. I think that should solve that.


I have purchased several vehicles with cash only and I just paid for them, signed a few transfer papers and was on my way. No credit check or anything.

GMC2500HD,


Did the dealership have you fill out a paper for the IRS if you payed more than $10,000 cash in one shot?


Just wondering, I know when I go to the bank for over $10,000 cash they make me fill out a paper.

I just bought mine with a personal check. All they needed was the DL, & insurance card...Oh yeah, and my social for Uncle Sam.

We bought a van in California last fall with cashiers check. With tax and license it came out to about $42K so unless there is some magic threshold you crossed, the dealer is making it up.

Thank you everyone for responding........


I believe in the state of California it's $ 5000.00 cash or more they have to report it to Uncle Sam. But, if you use a personal or Cashiers check, there is no reporting necessary. I can't see any need to run my credit report either. I told him I have no problem providing my drivers license, birth certificate to verify my identity. I even gave him my permission to contact my institution to verify that the funds will be there at the time of final purchase. This was not good enough for the owner, according to him. He also said it is dealer policy to get a deposit of $ 1000.00 that is refundable......

Diesel Dragon,


No. When the truck comes in is when I would pay. Nothing so far....

Call the DMV and see if what they say, sounds like a smoke screen for some hidden agenda if you ask me.

call the better business beuro (Spelling?) let them know what the dealer is doing, I'm sure they'd love to have a talk with them.





Lenny

I think you may have misinterpreted the dealer. If you're paying cash, there is NO reason they would need to run your credit. I would clarify/confirm with them what exactly they said.


The more likely scenario is that they said they would need to file a CT report (cash transaction report). The law requires that anytime someone pays for something with over $10,000 in cash or deposits over $10,000 in cash into their checking account, a CT report must be filed with the IRS. This process is fairly innocuous, as it does not trigger any tax consequences. It's simply a means for the IRS to keep tabs on taxpayers who deal in large amounts of cash. Using this information, they can review tax returns to understand how the taxpayer may have generated the cash (i.e. they have a cash-based business). I believe this process was designed to help identify drug money and other unreported income.


If you pay by check rather than cash, they do not need to file a CT report to the IRS, as the check transaction will leave a paper trail on you banking statements, which could be subpoenaed in an audit. Additionally, if you pay by check, this presumes there are funds in the checking account. If you DID have "under-the-table" cash you were dealing with, you would have had to deposit it in your checking account at some point, which would have triggered a CT report at the time of deposit. A little "trick" is to deposit your cash in chunks less than $10,000. This way, a CT report is never generated. Then, pay for your goodies with personal checks--a report will not be generated by either of these transactions.


Make sure your dealer is not running your credit--he has no business doing this.


~Terel, CPA

The dealer can not run a credit check without you SSN. He does not need your SSN for a CASH (check are concidered cash in this case) deal. I would find a new dealer and start anew, that dealer aready knows to much about you. Just my nickels worth.





IdahofoxEdited by: idahofox

Thanks guys,


I really appreciate your responses.....


Terel, I understand what your saying. But, all money is accounted for and legal...LOL...... I just have alot of inquires on my credit report recently. My lender said any more would probably hurt my qualifying for a property. Unles I can come up with more money. Which I can't. I just figured I would pay with any means that would not justify a credit check.


This guy has been a straight shooter up until he started asking me for the deposit and the credit check. He claims his owner is asking for it. Either way, I think that it was an unreasonable request.


Thanks idahofox.

Customers such as yourself is very rare.


This smacks of psyc 1A ~ when a decision is needed and there are equal positives/negative elements, the person will go with the negative.


To me, this must be his first time w/a lumpsum paying 'individual' customer and he is afraid of making a mistake. Stand your ground and do not consent ~ IF that truly is a problem for him. Purchase elsewhere. Make sure you don't grant permission and apparently he has time to resolve the issue w/the owner if he wishes. IF there is some recent State laws enacted in support of 'Fed HomeLand Security' Legislation if would affect all CA dealers and a simple way would be to contact another dealer and ask them ~ who knows, the other dealer might even beat the current deal.

Diesel Dragon,


No I did not fill out anything that would go to Uncle Sam. http://www.dieselplace.com/forum/smileys/Cool.gif

ShumDit,


I last spoke to the dealer this past Saturday "via e-mail". I have spoken to a handful of people and some say that the IRS needs some type of form from the dealership regardless of how the payment was made. Some say they only need to be notified if it is cash or personal check, but not cashiers check. But, they all agreed that there is no reason to have the dealership run the credit check. The ones that paid cash or personal check had "NO" credit check ran. Also, not one of the four had to pay deposit for their truck when it was all said and done. They were all told that the truck would sell with no problem....


When speaking to other dealers they said I was getting my leg pulled. It was probably the owner who wanted the info. I'm to a point that I don't trust any dealer. Sad, but true. I will give my dealer until the end of today(5 days to respond.). If no reply e-mail. Then, I will begin search for another dealer. It sure is hard to find a dealer that is ethical, honest and knows exactly what is going on with their product. And, one that knows what is going on, but doesn't sugar coat the problem or even denies a problem.......


Thanks again everyone for your positive/negative comments. http://www.dieselplace.com/forum/smileys/HiHi.gifEdited by: Ripnsumlip