Although in these situations we are not securing financing for you, we are still required to properly identify you and follow state and federal laws such as the Bank Secrecy Act, USA PATRIOT Act, Red Flag Rule, and OFAC as well as IRS reporting. These laws are designed to combat money laundering, screen all buyers against government-sanctioned counties, regimes, and individuals, and to protect consumers from identity theft and fraud.
Due to identity theft, money laundering, check fraud, and credit card fraud we take our identification procedures very seriously. For example, if you are presenting a personal check for payment we verify your creditworthiness before accepting the check. If you are paying in cash, we need information such as your social security number and occupation for government reporting purposes. In these cases, you will be asked to fill out a credit application to collect the data.
If you are paying in cold hard cash or with a cashier’s check, a credit inquiry is not necessary. In some situations, we may offer backup financing options to customers who want to take possession of a vehicle before a personal check clears their account or a cashier’s check is received by the dealership. In these cases, a credit application and credit report inquiries would be needed.