Image Credit: Obi/UnsplashAn expert car buyer posted an interesting video on his TikTok account recently, which included an excerpt from a conversation he had with a car dealership's salesman. The car buyer was convinced that what the salesman was trying to do was actually illegal.Tyler Edwards (@tylercarsells) is a professional negotiator and discusses the inner workings of car sales on YouTube. However, it is his recent TikTok that has gone viral, with over 200,000 views and over 600 comments, as he explained how he tried to buy a car from this dealership.In the video, Edwards is asking a salesperson from a dealership if he would run his credit if he paid cash for the car. The salesperson said that yes, he would, before he can be seen putting his head in his hands in the video, clearly in despair at the salesman's comment.AdvertisementAdvertisementHe asks the dealer why, but then pauses his video and says that if a salesperson ever states they will do this, it is because they have a hidden agenda. Edwards said that if you pay cash, a dealer should never, ever run your credit.The Expert Explained Why the Dealer Should Not Run His CreditEdwards asked the salesperson why they would run his credit when he is paying for the car in cash. The salesman said that this was a policy of the dealership that all buyers have to comply with. "I'm not trying to be abrasive," he said. "I'm telling you so you're not wasting your time." The salesman then said the credit check allows the dealership to see if there are any 'red flags' or identity theft problems.Edwards, however, said that if the buyer is paying with a personal or bank check, then this information isn't needed. He then asked if the salesman meant an OFAC report, a report that basically screens individuals. The US Department of the Treasury says an OFAC check "is a screening process used by financial institutions, businesses, and government agencies to ensure that individuals or entities involved in a transaction are not listed on sanctions lists maintained by the US Department of the Treasury's Office of Foreign Assets Control (OFAC)." But the salesman said they did not mean an OFAC check. That raised eyebrows with Edwards and even more with those in the comments section. "They're selling your information to finance companies, lenders, and data brokers," said Lame Sasquatch. "OFAC still needs to be run, but not a credit check or red flag. OFAC just verifies you are legally allowed to purchase a car in the USA," said Tim Pollack.Was Edwards Correct With His Assessment?Credit agency Experian said that Edwards was correct in his assessment. If you are paying for a car in cash, then the dealership does not need to access your credit score and report. Experian also said that these reports can give dealerships access to your finances. They can see what your spending habits are and what you can afford, and potentially arrange financing for you that also gives them a financial incentive.AdvertisementAdvertisementBut if you are paying up front in cash, there is no need for any of that. Experian also said to look out for a false invocation of the Patriot Act. This states, "Federal anti-money-laundering regulations do not require a dealership to pull your credit on a cash transaction." So, if you are looking to buy a car with cash, and a dealership asks to run a credit check on you, then the best thing to do is just walk away.If you want more stories like this, follow Guessing Headlights on Yahoo so you don't miss what's coming next.
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