Is the dealership mandated to collect your SSN if you are paying for the car in cash?

[crazyhorse]

I have a question for all the dealers on this forum as well as for folks who paid for their cars in cash (i.e., no financing from the dealer) -

I recently bought my Prius II for cash from an IL dealer. As I was concluding the deal he asked for my social. I reiterated that I was buying for cash and I didnt want my credit pulled since I was planning to refinance my mortgage and didnt want any hits at this time. He said that it was a requirement of the Patriot Act and he HAD to do it.

Since I had driven all the way to the dealership and my wife was starting to get irritated, I gave him the social and then we moved on.

Later I mentioned this to a friend who also recently purchased a car for cash and he said he never gave his social. So my question to all dealers is - what is the real scoop? Did he just pull my credit to snoop around? to try and sell their financing which I clearly did not want?

The reason I am posting this is 'coz I probably gave the dealership low marks on "Integrity" and the sales manager called me and was all pissy about it. He too reiterated that it was a govt requirement to get the SSN. I want to know what the truth is.

[swerthei]

I dealt with two different dealerships while buying my 2010 Prius. The first gave me the exact same story: even though I was paying cash, they insisted on getting my SSN and running a credit check, saying that it's some kind of government regulation related to the Patriot Act. I argued for quite a while about this, but they were adament about needing my SSN, and I eventually gave it to them. The second dealer did not even ask for my SSN, and ran no credit check - it was a much smoother process.

So either the first dealer was just giving me a bunch of BS because they couldn't figure out how to deviate one iota from their script, or the second dealer violated a federal law during my sale. I do not know this for certain, but I strongly suspect that the first dealer was the one behaving wrongly, and that there is really no such requirement.

[ALICASPIANI]

I purchased prius III, I was asked for S.S.#, I offered the dealer I will pick the car when the check is cleared by my bank.
Anyway, I provid them my S.S.#.
I was told by dealer that, all dealers must provid info to IRS & Department of H.L.S. for cash deal.

[qbee42]

Large cash transactions are red flags for security issues and tax evasion. Here is an excerpt from the IRS regulation:

General Rule For Reporting Cash Receipts
The Internal Revenue Code (IRC) provides that any person who, in the course of its trade or
business, receives in excess of $10,000 in cash in a single transaction (or in two or more related
transactions) must report the transaction to the IRS and furnish a statement to the payer.
Definitions
Cash - “Cash” generally means the coin and currency of the U.S. or of any other country. For
purposes of this reporting requirement, “cash” also includes a cashier’s check,1 bank draft,
traveler’s check, or money order having a face amount of $10,000 or less if the instrument is
1. received in any transaction in which the recipient knows that such instrument is being
used to avoid the reporting of the transaction, or
2. received in a “designated reporting transaction,” which is defined as a retail sale of a
consumer durable,2 a collectible,3 or a travel or entertainment activity.
Note: Under these rules, the term “cash” excludes personal checks written by an individual. Also,
a cashier’s check, bank draft, traveler’s check or money order is not considered to be received in a
designated reporting transaction if it constitutes the proceeds of a loan from a bank, thrift institution
or credit union4 or if it is received as a payment on certain promissory notes, installment sales
contracts or down payment plans and the recipient does not know that the instrument is being used
to avoid reporting of the transaction.

Tom

[fuzzy1]

Note: Under these rules, the term “cash” excludes personal checks written by an individual.

I paid by personal check, and have no recollection of being asked for SSN. But the banks have similar reporting requirements, even for large personal checks pre-Patriot Act, and they already have SSNs, so I'm presuming the reporting was performed from the bank, not from the car dealer.

The dealer did require some other ID from me.

[PriusLewis]

I believe this started with the changes in laws for the War On Drugs in the late '80's, and our freedom to make legal purchases without government intervention was further eroded by the so-called "Patriot" Act.

[djasonw]

Unfortunately you do have to provide a SS# for transactions over 10k, but under no circumstances does the dealer have a right to run your credit report if you are paying cash. I'd definitely complain as inquiries on your credit slightly effect your credit score (though not by much).

[JimboPalmer]

I should think it is going to help you get this deduction:

New Car (up to $49,500) Sales Tax Deduction in Obama Economic Stimulus Package plus the $4500/$3500 Cash for Clunkers Subsidy

[DaveShepherd]

I wrote a check (on a home equity line of credit) for my Gen III two months ago. I left the SSN line blank, and the finance manager had no problem with it. I don't know what I would have done if he had insisted.

Incidentally, as you can see from my location, I live in the hometown of federal regulation, and I bought my car from the biggest Toyota dealer in Fairfax City, Virginia. They obviously did not feel that they had to insist on having my SSN.

[bestmapman]

Here is what I did in a similiar situation. I reversed the last two numbers. In my situation everyone was happy. They got a SSN and I didn't give mine out. If they would have checked or it really mattered, then it is a common mistake that I make by getting those two last numbers confused. It happens to me all the time. Stupid me.