New car and credit check.

[Bartman619]

Here's quick question for e90'ers. I have a friend buying a new car. She got a loan from her credit union and they cut her a check, about $20k or so. She tried to purchase the new car with her check and the dealer asked to do a credit report on her. For some reason or another, she declines the credit report. I know that she's got good credit and didn't want the car dealer running her report and dropping her score. She feels that since she got her loan from her Credit Union, that the dealer didn't have any business looking into her credit. She then said that the dealer told her it was a "Partiot Act" or some kind of law for them run the credit report. And so, the deal fell through and she didn't buy the car because of said issue. What is your take on this ? Do you need a credit report done by the dealer when you bring a check from the Credit Union where you got a loan from? BTW this happened in Socal.

[Feyd]

Unless she is still financing a portion of the car (IE, the 20k wasn't enough) then they shouldn't be running her credit.

Although people run your credit when you apply for jobs these days, so who knows. Seems super fishy to me.

[Bartman619]

She plans on putting down the $20k check, she got from a credit union loan. The rest $3K-$5K will be a personal check or cash from her.

[wuzupfoo]

They prolly dont trust the bank check so they want to have their financing set up till the credit union check clears. My dealer did this for my ride. Tell her it wont matter if they check her credit since she already initiated one for her CU financing. The one the dealer does wont count unless its been over 3 months. (Note. not completely sure its 3 months but this concept is true, you dont get dinged for shopping similar type loans.)

Another option is to leave the car at the dealer till check clears. Either way she should ask for what exact purpose its being run for. If not the above reason run away.. you are dealing with some shishtyness.

EDIT: I just re-read your post and the stupid patriot act business. Typically if you give them a state issued ID this would suffice to prove identity, which I believe is why they brought up the Patriot Act, its under the money laundering statutes they are referencing. (Im guessing this but I do deal with banks all the time on a commercial basis and had this come up and had to prove our business was not some terrorist money laundering operation!) Never heard of a credit report being required for it. Is this dealer a major reputable dealer ?? or is this Joes Used Car lot with a trailer as an office??

[Freakazoid]

Originally Posted by wuzupfoo

They prolly dont trust the bank check so they want to have their financing set up till the credit union check clears. My dealer did this for my ride. Tell her it wont matter if they check her credit since she already initiated one for her CU financing. The one the dealer does wont count unless its been over 3 months. (Note. not completely sure its 3 months but this concept is true, you dont get dinged for shopping similar type loans.)

Another option is to leave the car at the dealer till check clears. Either way she should ask for what exact purpose its being run for. If not the above reason run away.. you are dealing with some shishtyness.

EDIT: I just re-read your post and the stupid patriot act business. Typically if you give them a state issued ID this would suffice to prove identity, which I believe is why they brought up the Patriot Act, its under the money laundering statutes they are referencing. (Im guessing this but I do deal with banks all the time on a commercial basis and had this come up and had to prove our business was not some terrorist money laundering operation!) Never heard of a credit report being required for it. Is this dealer a major reputable dealer ?? or is this Joes Used Car lot with a trailer as an office??

The patriot act and combining with your credit score is bullshit, plain and simple.

As for the ding on her credit score, it will be VERY minor, but it will be a ding, so I can't blame her for being against it....especially with that line.

Here you go:
http://www.carbuyingtips.com/scams.htm

For THAT reason alone I'd leave the deal on the table....permanently

[CollinsE90]

They are trying to offer her financing through them, dealers have no reason to need the credit score when paying a different way(cash, credit union)...

[Bartman619]

Thanks for the input everyone. The link on finance scams helps a bunch.