avignon

My new A4 has arrived at the dealership. The salesperson is telling me that a credit check is required even though I'm not financing the car with them. I don't want to run a hard credit check because we're moving and will be applying for a new mortgage in the next 6 months or so and I don't want to impact our credit score. Has anyone else experienced this? How did you handle it? Thanks in advance.

(Sorry, I searched the forums but didn't find anything on point.)

oesman

I'd refuse to do it flat out, no negotiation whatsoever. In fact I'd be super pissed if they kept that up, I would totally walk over some crap like this. There is no reason for them to pull your credit. It's a scam and the sales person is just trying to pitch you his own financing or leasing in hopes you go for it. This sales person clearly values the tiniest chance to make an extra buck over your wants and credit score as his customer. Your dealer sounds shady as hell. It's like the Patriot Act scam some of them used to pull: https://www.creditcards.com/credit-c...o-car-loan.php

19hole

No need for them to do it.

lsbuffs

I wrote a check for the full amount of my car, however the dealer insisted a credit check was required. They told me it would be a soft pull, but turned out to be a hard, two bureau pull. They said something about the Patriot Act. I'm still pissed about it and wish I pushed back more.

Obsidian3K

I've seen this question come up a few times on the askcarsales sub-Reddit.

IIRC, a credit check itself is not required if you're not financing with the dealership. What is required is the collection of specific information for Patriot Act compliance. Apparently it's not uncommon for dealerships to not have a separate form for the Patriot Act information, so they just have customers fill out the credit check form, which contains all necessary fields (and then some).

According to multiple salesmen who contribute to that sub, you can insist that a credit check not be run when filling out the credit check form for Patriot Act purposes, and the dealership should have no issue complying.

I'm sure that I can dig up specific threads there if necessary.

uberwgn

"Know your customer" rule.

SDakota

I faced the same situation - my ordered car arrived just prior to the closing date on a new home. I paid cash for the car. The MN dealer said a Patriot Act check was required, but a credit check was not. My mortgage banker never said anything about the auto purchase, so I assume the dealer did what they promised and bypassed the credit check.

I understand background checks for guns, but why motor vehicles? It's getting more difficult every year just to pay cash for a purchase and walk away without disclosing personal information to a business whose information security is unknown.

19hole

The Patriot Act check is required for pretty much any "large" purchase in the US. Most companies have the ability to run the customers name through a data base to be sure they are not a listed person. All that is required is a government approved photo ID so they get the correct name. If your name comes up then there is more documentation required to prove that you are not really the listed person.

Versprechen

They would need to run the person though the Office of Foreign Assets Control (OFAC) system which requires a some sort of subscription (banks and probably all financial institutions are required to run an OFAC report on everyone they conduct transactional business with, even those applying for loans and thus having their credit pulled).

avignon

Edmunds has a article from last year (https://www.edmunds.com/car-buying/c...triot-act.html) about the Patriot Act connection. But my salesperson claimed that it was company policy to check credit on every transaction. Since I knew it wasn't required by law, I was curious what others had experienced. If I wasn't going to be applying for a mortgage, I wouldn't care so much. What's really annoying is hearing stories of dealers pulling credit checks without permission, like happened to Isbuffs