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Do I have to give my ssn to a car dealership for any reason?

2016forester2016forester Member Posts: 3
edited November 2015 in General
I'm paying w/ pre-approved credit union loan check. I understand the dealer is supposed to call my bank to verify if the loan is good to go and will give the dealer an authorization number for the amount I purchased it for. Will the dealership do an OFAC check even though I've already got a loan. Please explain. Thanks!
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Answers

  • carboy21carboy21 Member Posts: 760
    edited November 2015
    In my case also I was pre-appoved for the car loan and I told the salesman that I have my loan approved, still they asked me to fill up an online credit check form where all my data was asked including DOB and SS . I was very upset that I had to undergo a credit check by the dealer in spite of being pre-approved by my Bank !!

    Moderators please give your informed opinion about whether this is a standard practice or a way to steal my ID with all my data .
  • kyfdxkyfdx Moderator Posts: 257,503
    I don't think anyone is out to steal your ID, just like the restaurant isn't out to steal your credit card info when you pay for a meal. But, in both cases, it doesn't mean that it can't happen.

    You could probably manage to buy a car without giving up that info. But, that would mean leaving the car there until all titles and paperwork have been completed. That might be weeks.

    While you are worried about identity theft, so is the dealership. They aren't trying to steal your information, they are trying to make sure they don't get scammed.

    Yes... the dealer will still do a credit check. If something happens with your loan, they have to be sure they can still finance you, and at what rate. If you have good credit, a credit check is not going to harm you. (IMO).

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  • steverstever Guest Posts: 52,454
    "Edmunds.com also reports that there is some confusion among dealers themselves about whether the Patriot Act requires them to run credit reports in connection with car sales. It does not. The Office of Foreign Assets Control (OFAC) does require dealers to screen buyers who are making purchases of $10,000 or more in cash to make sure they are not on a government terrorism watch list. To comply, buyers must provide dealers with their name, address, date of birth, Social Security or other tax ID number, a valid driver's license and occupation. But no credit-reporting agencies are involved."

    Edmunds.com Provides Tips to Help Car Buyers Avoid Unnecessary Credit Checks

    Car Dealership Credit Report Scams and the Patriot Act
  • isellhondasisellhondas Member Posts: 20,342
    A lot of these so called pre approvals aren't really solid. Yes, a dealer needs your SSN. Nothing sinister about doing this.
  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481
    edited November 2015
    You can deny a dealer the authority to run a credit check but you can't beat the Fed rule of over $10K. Oddly enough, the IRS doesn't consider a personal check "cash", while other types of check are "cash". WTH??? But then, what dealer would take your check without a credit check? If I were pre-approved by my credit union, I'd refuse a credit check and possibly a SSN--depends.
  • isellhondasisellhondas Member Posts: 20,342
    Even if you pay by writing a check the dealer will still want your SSN to run your credit. Otherwise they will hold the car until the check clears which can take days.

    A buyer could write a check, get buyer's remorse and put a stop payment on the check. If that were to happen, the store would simply convert it to a bank contract.
  • 2016forester2016forester Member Posts: 3
    Hello everyone! The update on my purchase...no SSN was given. I was able to buy it with my pre approval check. OFAC was checked through different sources. Apparently, my check from the credit union was good enough for the check (I was told).
  • steverstever Guest Posts: 52,454
    Thanks for reporting back.
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