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This [older] post (link) makes it sound like it's likely I'd be expected to complete a credit application, give out my SSN, etc., if I walked into my local dealership and said I wanted to pay cash for a used car. I wonder, is this still the case in 2023? And, perhaps more pertinent, is there any excuse they can make that requires me to give them this information?

I'd rather not allow them to check my credit, as my credit-worthiness is not in question in this case. But assuming the transaction would be greater than $10k what is the bare minimum that they need to file the relevant large-transaction forms with the IRS?

nuggethead
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3 Answers3

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There's no legal requirement for you to provide any of these details for the purpose of a credit application. There's no legal requirement for them to complete the transaction if you refuse.

Generally, if you pay by cash or check (including cashier's check), or any other method of payment that may end up being fraudulent, most dealerships would want you to provide all the information necessary to convert the transaction into a loan. If you refuse they may not want to deal with you.

Your cash may not be forged but may be otherwise tainted: it may be stolen, or tied to a crime, or some other reason they may not be able to actually use it.

You may offer to wire money to them instead, and see if they agree to allow you transacting anonymously.

As the other answer suggests, in some states you may need to provide some of these details for the purpose of registration. If that's the case there's no way around it, but that's not what your question is about.

littleadv
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Many years ago, dealerships insisted that we fill out a loan application no matter how strenuously we told them we wouldn't be getting dealer financing. That seems to have changed over the years. It isn't just them looking at me as an experienced buyer, my children have been able to buy cars without dealer financing and without having to complete a loan application.

I wonder if they are able to do a soft pull of your credit score based just off your drivers license info. Remember they scanned your license before you took a test drive. That soft pull would give them a ballpark estimate of how good you are with credit, though there would be no income info, or info regarding existing debt levels.

Once you complete the sale the state may require them to collect other information to complete the title and registration process. This could include information not on your drivers license.

If you are selling a car they will need to have proof you own the old car, before buying it from you.

Neither of these things is needed during the negotiating phase.

If I was asked to complete a loan application I would refuse. They want an application so that they can add the loan details to the negotiating phase. If they know the range of loans they can use it makes their job easier, and yours harder.

mhoran_psprep
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In most states, licensed dealers are required to collect registration fees and taxes, and ensure the car is insured before letting you drive off. Dealers are an agent for the state DMV.

Thus, required documentation when buying from a licensed dealer typically includes a driver's license, proof of insurance. Because property and registration taxes are involved, social security numbers may be required for this purpose.

This would be state-dependent, but for example, Ohio requires collection of SSN by statute, ORC 4503.10(A)(7).

user71659
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