Why does the carsalesman ask my SSN?

Question

I'm buying a new SAAB and I'm paying cash, the salesman asked my SSN, birthday and place of birth, why?

On top, he didn't had a form for me so he gave me a credit-application-form to fill in.

Answer 1

I am not totally sure if it is the same as bank requirements, but I believe when there are cash transactions over $10,000 they must be reported to the government and they need your SSN to do that...

Answer 2

They also run your SSN through to see your credit score.

Answer 3

Because car salesman don't usually receive cash for cars a lot.  They figure you are just saying that to try to get a better deal out of you.  So they figure once you get a price, you will be like "what would I pay if I were to finance it."

Most people who have that kind of money do not waste it on a car (no offence to you).  If you can put some down (let's say 5%) and get a great interest rate (GM actually has 0% rates, which owns Saab) then it would be smart money-wise to put the rest either in stocks, bonds, or a high-yeild money market account.

Therefore once the car is paid off, you will come out ahead with the money you invested.  Instead of spending the exact same amount to pay the car in full.  But a lot of people just like to have no payment at all. (Whatever floats your boat).

Answer 4

Normally that info. is only required for a credit check. For cash transactions over $10,000, an IRS form is filed. Date of birth may be needed to set tag renewal month, as in Florida.

Answer 5

No matter how you are paying, be it cash, check, money order, if the total amount is over 8k they'll need to report it to the irs.  

You don't need to fill in the credit application form,  make sure he's not looking at your credit, he may try to match the rate you are getting from your bank, just tell him not to run you credit.

Answer 6

When you use cash (more than something like $8K - lowered from $10K), the IRS must be notified.  Last time I bought a car and made a down payment of $8K, I received a letter that they had to inform the IRS.

The credit application form doesn't makes sense.  They might have handed you the "standard" list of forms without even thinking (which is normal).

Good Luck...