SANTA MONICA, Calif. -

Dealers know “getting the deal bought” is a crucial part to turning inventory. With that factor in mind, Edmunds.com put together recommendations for when potential buyers should and should not grant F&I managers permission to run a credit check, since extraneous credit checks could put an unnecessary dent in a credit score.

“Dealerships usually offer access to the best finance rates for qualified buyers, and to get those rates, a credit report is required,” Edmunds.com senior consumer advice editor Philip Reed said. “But if you are using outside financing from your bank or credit union, the dealer is not required to run your credit report.”

Reed noted that buyers can protect their credit scores by following these guidelines:

—Edmunds.com recommends that buyers shop around for a loan from an independent source such as a bank, credit union or online lender before going to the dealership so they know the rate they qualify for before learning what a dealer can offer.

—The site said buyers should tell the tell the salesperson you are a “cash buyer” because they have pre-approved financing, but they should consider any offers made in the F&I office that may beat the interest rate on the loan they already have.

—Buyers should only give the salesperson permission to run a credit report if they decide to finance at that dealership.

Edmunds.com also reports that there is some confusion among dealers about whether the Patriot Act requires them to run credit reports in connection with vehicle sales.  The site says the federal mandate does not.

“The Office of Foreign Assets Control (OFAC) does require dealers to screen buyers who are making purchases of $10,000 or more in cash to make sure they are not on a government terrorism watch list,” Edmunds.com explained.

“To comply, buyers must provide dealers with their name, address, date of birth, Social Security or other tax ID number, a valid driver’s license and occupation. But no credit-reporting agencies are involved,” the site continued.

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