Quote:
Originally Posted by deange
Clint is 100% right. Last two trucks I bought 100% cash, but if you are going through a dealership, you have to fill out a finance application. I doubt anyone would want to do more paperwork when you have the money in hand, but that's the law.
|
Uh, no, it's not actually the law.
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Cash-Payments-Over-$10,000-Received-in-a-Trade-or-Business---Motor-Vehicle-Dealership-Q&As
http://www.edmunds.com/car-buying/ca...triot-act.html
The reason dealerships have cash purchases fill out a credit application is because cash purchases aren't usually actually CASH MONEY - it's usually a check or money order of some sort (which does need 8300 reporting (not personal checks though), but not a finance app). The application is in case the check bounces or is fake, then they go get a loan for you based on that application. This is typically explicitly stated in the paper work, at least in California. That said, this isn't a 'trick' by the dealership, and makes sense as a rule for them to have. But they need to explain it better (including to the salespeople).
I suspect if you actually went in with a briefcase of $100s you might get a different response to not wanting to fill out an app...