You have been saving up for a new car and today is the big day when you go to the dealership to finally get it.
You are ready to pay in full with a check (or cash), so you don’t need financing. The surprise comes when the dealer tells you that you need to fill out a credit application first. They might tell you that this is their standard procedure.
How to avoid: since you are paying in full for the car on the spot, you don’t need to fill in a credit application. They are just trying to get you into paying monthly terms, which brings the dealership more money.