Does a Car Dealership Have to Run Your Credit?

Depending on your financial situation, a car dealership may have to run your credit. In some instances the dealership may try to convince you that the Patriot Act requires to complete a credit application, which is not true. The salesperson may run your credit with just your drivers license without your permission. If you are worried about this, explicitly state that you do not want your credit run when you present your license.

Leasing

Leasing a car means that you agree to keep the car for a specified period and only drive up to a certain number of miles per year. At the end of that term, you must return the car to the dealership, where you can walk away or negotiate to keep the vehicle. If you are interested in leasing a car, the only way to do so is through the dealership. Since the dealership would finance a lease, you would have to consent to having your credit run in order to lease the vehicle.

Bringing Your Own Financing

If you apply for a car loan through your bank or another financial institution, you are bringing your own financing to the dealership. This generally means that you have no need for other financing when you are ready to buy a car. Unless you want to try to get a better loan rate through the dealership, you are under no obligation to fill out a credit application at the dealership and have your credit run.

Financing Through The Dealership

If you arrive at a car dealership to buy a car and do not have your own financing or cash, you are likely planning on financing through the dealership. If this is true, you will have to have your credit run. The dealership cannot give you a car loan or even an interest rate until your credit has been run.

Paying Cash

You may plan to pay cash for your next vehicle. Generally this means that you have no need for a car loan or lease. If this is true, you have no reason to fill out a credit application. As long as you have enough cash to cover the cost of the car, including any applicable taxes and fees, you do not need to have your credit run at the dealership.