Does car dealer really need my social security number if I pay cash?

[Anonymous]

I rarely give it out. Vehicle is $45,000 and I’m paying cash (cashier’s check)

They claim they need to report it to the IRS because it’s over $10,000.

I don’t want them running a credit check (which lowers my credit) and will make it clear they do not need to do that.

But is this legit here in Maryland?

Our last car was purchased privately and before that in Rhode Island and they didn’t ask for social security numbers.

[Anonymous]

Yes, transactions above 10k have to be reported

https://www.irs.gov/newsroom/understand-how-to-report-large-cash-transactions

[Anonymous]

Anonymous wrote:Yes, transactions above 10k have to be reported

https://www.irs.gov/newsroom/understand-how-to-report-large-cash-transactions

+1 but also read closely all documentation that you sign so that the approval to run a credit check is not included.

[Anonymous]

Anonymous wrote:I rarely give it out. Vehicle is $45,000 and I’m paying cash (cashier’s check)

They claim they need to report it to the IRS because it’s over $10,000.

I don’t want them running a credit check (which lowers my credit) and will make it clear they do not need to do that.

But is this legit here in Maryland?

Our last car was purchased privately and before that in Rhode Island and they didn’t ask for social security numbers.

If you can pay $45k cash for a car, why do you care about the minor blip to your credit rating that a credit check would cause?

[Anonymous]

Anonymous wrote:Yes, transactions above 10k have to be reported

https://www.irs.gov/newsroom/understand-how-to-report-large-cash-transactions

Yes, OP. The reason that they do this, is that large purchases in cash is a frequent way of laundering money. So, they track large cash transactions to help ensure that they have a list of the buyers spending large amounts of cash.

If you don't want them to run a credit check, then talk to them about not having them run a credit check. However, just so you know, if you are not borrowing money from the dealership for the purchase of the vehicle, they will do a soft credit check, not a hard check. A soft check will have zero impact on your credit score. They only do hard checks (which have a very small blip on your score) if you are borrowing money.

[Anonymous]

OP here - my credit score is very good and I’m not buying anything else soon but extra credit checks are unnecessary. I don’t see why they even need a soft pull if they have their cash in hand! It seems ridiculous.

I thought the bank would track the withdrawal but it never occurred to me the dealership would. When we bought our last car with a cashier’s check, nobody cared. They also don’t do this for personal checks but the dealership won’t accept those.

Mostly I just don’t like to give my social security number out because of it entity theft concerns.

[Anonymous]

Anonymous wrote:OP here - my credit score is very good and I’m not buying anything else soon but extra credit checks are unnecessary. I don’t see why they even need a soft pull if they have their cash in hand! It seems ridiculous.

I thought the bank would track the withdrawal but it never occurred to me the dealership would. When we bought our last car with a cashier’s check, nobody cared. They also don’t do this for personal checks but the dealership won’t accept those.

Mostly I just don’t like to give my social security number out because of it entity theft concerns.

Well, one reason for the credit check is you're not actually paying with cash. It's not like you're bringing a briefcase full of 20s. You're giving them a cashier's check. Those can be fake.

[Anonymous]

Anonymous wrote:OP here - my credit score is very good and I’m not buying anything else soon but extra credit checks are unnecessary. I don’t see why they even need a soft pull if they have their cash in hand! It seems ridiculous.

I thought the bank would track the withdrawal but it never occurred to me the dealership would. When we bought our last car with a cashier’s check, nobody cared. They also don’t do this for personal checks but the dealership won’t accept those.

Mostly I just don’t like to give my social security number out because of it entity theft concerns.

We all know your SS number already.

[Anonymous]

The F&I desk wants to run a credit check so they can hard sell you on how great financing options would be. And prior to 2020 you might have gotten a rebate or other incentive for financing and then turned around and paid it off.

Note that a wire transfer is not reportable to the IRS ZON FORM 8300 as a cash payment, unlike a money or cashier’s check. That doesn’t mean the dealer still won’t want your SSN for its records. The risk of identity theft occurring in this case is practicslly de minimis.

[Anonymous]

I just bought a car on Friday with check ($40k) and they did not ask for my social security number at any point.

[Anonymous]

New poster here. I bought a car two years ago with a check (21k) and no one asked for my social security number either.

I did ask before I got to the dealer if it was okay to write a check and they said yes.

[Anonymous]

Anonymous wrote:I just bought a car on Friday with check ($40k) and they did not ask for my social security number at any point.

Because there is no risk of money laundering with a check. There is with a bag of $100 bills

[Anonymous]

yes. Any cash transaction over $10,000 requires a Currency Transaction Report to be filed with Fincen. to not do it is illegal, but unlikely to be pursued legally unless it's a pattern of conduct or is part of a more serious crime, i.e. money laudnering.

From Fincen: Federal law requires financial institutions to report currency (cash or coin) transactions over $10,000 conducted by, or on behalf of, one person, as well as multiple currency transactions that aggregate to be over $10,000 in a single day. These transactions are reported on Currency Transaction Reports (CTRs).

[Anonymous]

I was going to trade my truck, cash deal and get money back from them. The salesman asked for my SS number and stated "to make sure your not a terrorist"? The dealership I bought the truck from was also a trade in and didn't ask for my SS number, in fact this is the first time I have been asked in all my years of purchasing vehicles!

[Anonymous]

Title it in a trust that is an LLC and then they’ll only need the EIN. I’m surprised you don’t already do this.