In Colorado, they do require that short-form credit check, even with an all-cash transaction. The rationale I was given came from a 9/11-based identity confirmation law.

 

Thank you everyone for your advice and experiences. It seems that typical protocol is to request the SSN. However, dealer does NOT have to have this if you are just stroking a personal check/sending wire.

 

By Federal law, you can always refuse to provide your number and fill out a form specific for that. The dealer can verify your identity via your DL only and they do not need to touch your credit.
Had that same run in with a dealer from Virginia, passed on the deal and went with the dealer in Maryland and they did the transaction via wire, DL only and no proof of insurance was required because the shipping company that picked it up has coverage. I am required to have insurance when receiving the vehicle. nonetheless I did have insurance on the car 2 weeks before it got delivered to me.
This is a way for them to get your information and you have the right to refuse it an they can not deny you the purchase.
I am not a lawyer but bought enough cars in multiple states to know my rights.

 

Calif.is a third world country now, what do you expect.

 

Exactly, they were able to use DL to verify me and we got the deal done. I paid with bank wire.

You got that right. Oh my gosh, the papers that I had to sign that were FedEx'd to me. There were so many freakin disclaimers, under penalty of this, etc. Because I was out of state and how dare me not pay them (California) taxes.