Former USMC

Greetings,

This has been gnawing at me for almost a year. I have a question for the group.

Last year, I paid cash for my 2016 C7. The price was great, and I had a little extra cash to spare. However, during the course of the transaction, the dealer insisted that I fill out the necessary paperwork to finance the car. "...just in case your check does not clear."

My question is simple. Since I paid cash for the car, I never financed or even made one payment (the check cleared...duh. and the contract was voided). However, did the dealership make any money on creating a finance deal? Any kickbacks? Any incentives from the bank? Did they gain anything from the deal. Or, were they legitimately covering their butts?

Don't get me wrong...I understand taking a personal check for a ~$65,000 item and the check bounces is a very risky proposition. Yes, I guess I could have said, I'll pick up the car when the check clears. Oh, before you ask, they said, "we'd do the same if it were a cashier's check."

Just curious and thanks in advance for your response.

Semper Fi

roadcandy

This happened to me a few years back with a Lady I work with. I went with her to help her buy a SantaFe and she clearly told the dealer that she was paying cash and the salesman kept insisting she fill out a credit application. Finally I stood up and shouted loud enough that I could be heard in the showroom what do you not understand about her paying cash and she is NOT filling out a credit application. At that point they tore it up.

Steve_R

I doubt the dealer made any money since the the financing didn't happen. Even if they somehow did it wasn't from you, so why are you still worrying about it?

Maxpowers

You might want to pull your credit score and see if a loan was issued. Just to be safe.

John Ulrich

They are hoping you reconsider paying cash and allow them to write a loan on the deal.

Thunder22

Sometimes they get paid on loan apps, regardless of whether they're used or not.

That being said, I would never give up the info or fill out the app if i'm paying cash.

Former USMC

Just going through my paperwork for tax purposes and ran across the contract. I'm no longer standing on the "edge."

Semper Fi

Foosh

Right, it's fairly simple. All you have to do is refuse to fill out a credit application. No dealer is going to give up a sale if you do that.

Former USMC

Maxpowers,

Believe it or not, they said it would not impact my score, however, checking one's score is always useful.

Semper Fi

Former USMC

John,

Yes, or the check bounces...

Semper Fi

Former USMC

Thunder,

I figured that no one would waste that much time if no incentives were involved; other than protecting themselves.

Be curious to know how many people wrote a personal check and drove a Corvette home, even if they called the local bank.

Semper Fi

Former USMC

Foosh,

You would think...it was just a pain in the butt...and took up way too much time.

Semper Fi

Thunder22

I paid cash via check as well (Criswell/Mike Furman). No credit app was filled out, but I did have to provide some personal info if memory serves me right for non-export and tax reasons as I bought my car in MD but registered it in NJ.

I doubt anything nefarious happened with your situation if no loan was opened and your credit score wasn't negatively impacted.

defaria

I bought cash. They didn't make me fill out any financing crap. If they would have I would have told them to pound salt and would have walked. It's pretty darn simple, if the check doesn't clear I don't get the car - just like any other transaction I do - why should this be any different?

Landru

IF OP wrote a check, and wanted to take car before check cleared?
Seems dealer was only attempting to protect their own interests.
If nothing was financed, nothing was made for them.
A kickback, if any, wasn't on your dime.

FWIW IIRC there've been 2 articles posted recently citing dealers who accepted a personal check only to have check bounce, leaving dealer holding the bag. Word's out re personal checks, I'm sure.

After a gnawing year time to let it go, devote 100% of your attention to your beautiful C7. After all, it's paid for.

Former USMC

Landru,

That's what I was thinking - protecting your own assets.

It's gone - 110% to the car...now, what to do next?

Semper Fi

Landru

What to do next?
Drive it 'til you can't sit any longer!!

It's drop dead beautiful from stem to stern as-is, Sarge.

ZenicaPA

I paid via a certified check. No loan app. No questions about the checks validity.
I'm sure they called the bank to verify funds before letting me drive off with their $109k sticker priced car.

Anyone here remember the Autoland fraud case from the mid 80's? I lived in Springfield and was driving on Rt 22 when I saw a swarm of FBI vehicles pulling into their lot. Turns out, employees were using credit apps to open lines of credit for themselves. Everyone in my family keeps all three credit profiles locked. Good luck stealing our credit!

Skid Row Joe

In June 2013, I wrote a personal check for my daily driver, a used Mercedes-Benz from the Mercedes-Benz dealer in San Antonio, 300 miles away from my home. I was free to go with the car. They did no checking on the check.

obxchartercaptain

A Dealer does NOT get paid for a filled out loan app. There are privacy laws that protect the consumer. But you are correct in saying that you should NEVER give up credit info if you are paying cash/check other than your Drivers license...