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anyone done it? do dealers normally go for it without adding any processing fees? What about paying part of the cost with a credit card? at least the down payment or deposit (if special ordered). I'm just thinking how nice it would be to book anothe 25k purchase points or *points.
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that will be the day when we can do that. I was able to pay for school tuition with a CC until recently. Bagged be a bonus 40K miles a year. Too bad they make you pay the fee now (approx 2%).
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I don't think any dealer will let you buy a car with a credit card--perhaps a cash advance, but that's it. It could turn into a problem for the dealer if the car turns out to be a lemon.
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a former co-worker of mine bought his car with a credit card. I don't know what he had to go through to do it but interesting concept and a good way to earn ALOT of miles at once.
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a former co-worker of mine bought his car with a credit card. I don't know what he had to go through to do it but interesting concept and a good way to earn ALOT of miles at once.
A brave dealer sold that car! Aside from the transaction cost to the dealer, there's the risk of different consumer protection laws kicking in! I'd say that unless you have a permanent, low interest rate on that card, the card is associated with a margin account at a brokerage, or you plan to pay the card off immediately, the dealer probably got the better part of the deal!
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anyone done it? do dealers normally go for it without adding any processing fees? What about paying part of the cost with a credit card? at least the down payment or deposit (if special ordered). I'm just thinking how nice it would be to book anothe 25k purchase points or *points.
"$5,000 Maximum Credit Purchase" is posted at the dealership.
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"$5,000 Maximum Credit Purchase" is posted at the dealership.
I'd take it - 5000 TY points is better than nothing. I'm going to give it a try in the next couple of weeks, I'll post back if (un)successful.
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I've put $2000 down on a credit card, that is the max they would allow.
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I've put $2000 down on a credit card, that is the max they would allow.
$3000 down accepted this spring at a local dealer
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I've helped my friend buy a $6000 used truck via CC. He paid me cash the following month and I picked up 6000 TY points, (actually 12k with the flight bonus)
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I can see if you are gonna be paying sticker price without any Rebates or Discounts and the car/truck doesnt have a Waitlist. Then maybe you would be able to get it all on a CC.
I was amazed that I was able to use my CC for $2500 on a car that I picked-up for $1000 under Dealer Cost. Dont worry they didnt give it away Im Positive the Manufacturer had a ton of Dealer Rebates going on.
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I purchased a Honda last month and the dealer only permitted me to charge $2,500.
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Three years ago I was able to put $17,000 New Zealand Dollars on credit card for the first of three payments for an alfa (about 10,000 USD)
Jeff
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I purchased a Honda last month and the dealer only permitted me to charge $2,500.
I got the same deal: I got to put $2500 down on an Odyssey; they told me they accepted it because I paid the rest in cash.
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When i bought my car (years ago) I asked if I can charge it on my credit card..
They would prefer check because the costs associated with CC add up
significantly for the full purchase.
Typically a dealer makes 4-8% on a new car. if the CC charges them 2% its
a significant chunk of their profit.
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I have a friend that bought a Harley value 25000.00 on his Visa
You can use a Balance Transfer Check to purchase a car though no miles on some cards
No UA credit card will allow you to Earn miles on Balance Transfers
I know of a few people that have bought cars on there credit card and it was over 5000.00
Everything is based on the Dealership
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anyone done it? do dealers normally go for it without adding any processing fees? What about paying part of the cost with a credit card? at least the down payment or deposit (if special ordered). I'm just thinking how nice it would be to book anothe 25k purchase points or *points.
I bought my wife's car with my Citibank Premier Pass credit card without paying any fees...through hard negotiating...but got them to take it all on one charge without paying 1c in fees...
I charged the entire down payment...14000 to be exact and financed the rest...
Just negotiate hard and do not let them and be prepared to walk away if they do not agree...they will eventually agree...just depends on who wears out who...
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Assuming the dealer pays only 1% of the transaction fee, I would personally pay all that I can in CC and not an additiona 1% discount.
Think about it, $10,000 X 1% = $100.
But 10,000 FF points has a "street value" of $200.
What ya think?
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that will be the day when we can do that. I was able to pay for school tuition with a CC until recently. Bagged be a bonus 40K miles a year. Too bad they make you pay the fee now (approx 2%).
How can a dealer refuse the charge? Do they not have a contract with Visa/MC etc that requires them to accept it? Can a Jeweler refuse to sell a $10K diamond but accept the card for a $5K one? I can see accepting the card only for service but if the accept it for any amount of the vehicle shouldn't they accept it for all of it?
Seems strange to me
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Remember that many of the credit cards provide an extended warranty. This could be a major cost to the credit card company which would, if at all possible, be passed on to the car dealer. Not a good situation to be in if you are a CC company or a car dealer.
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You can sometimes buy a car on EBAY and use your credit card via Paypal. Not sure if there is a limit to this but on the occasions I've see this listed as a payment method there was no mention of a limit. Perhaps a limit is put on by PayPal themselves? Then, of course, there's always the question of the wisdom of buying a car on EBAY in the first place.
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Remember that many of the credit cards provide an extended warranty. This could be a major cost to the credit card company which would, if at all possible, be passed on to the car dealer. Not a good situation to be in if you are a CC company or a car dealer.
I wouldn't take credit cards if I were a dealer...
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If you really want to be pushy with the dealer, you can tell them that it's a violation of the Visa/MasterCard merchant agreement to impose a minimum or maximum charge amount. Just like it's against the rules for the corner pizzeria to deny a $3 charge, it's against the rules for the Benz dealership to deny a $50,000 charge. You could contact your credit card company and have them intervene if you insist on charging the full amount of a car (after all, the CC issuer would love to earn the merchant fee for such a purchase!)
Of course, doing this won't put you on the dealer's good side, but if you want to play hardball, they're (technically) required to accept all charges, no matter how big or small, if they accept credit cards for any purchases.
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If you really want to be pushy with the dealer, you can tell them that it's a violation of the Visa/MasterCard merchant agreement to impose a minimum or maximum charge amount. Just like it's against the rules for the corner pizzeria to deny a $3 charge, it's against the rules for the Benz dealership to deny a $50,000 charge. You could contact your credit card company and have them intervene if you insist on charging the full amount of a car (after all, the CC issuer would love to earn the merchant fee for such a purchase!)
Of course, doing this won't put you on the dealer's good side, but if you want to play hardball, they're (technically) required to accept all charges, no matter how big or small, if they accept credit cards for any purchases.
I work in marketing a credit card for a large auto company and often work with the dealers - trying to get them to accept the credit card that we issue and on other marketing initiatives.
Many of the dealers have contracts with Visa/MasterCard that DO allow them to set a limit on charges on credit cards for vehicle sales. It depends on the size of the dealership and what they negotiated with Visa/MC.
If they do have a limit - there are a couple of things you can do depending on the card you are using. Obviously, if you are using a vehicle cobrand with that auto company, then you can tell them that the points you are earning will be coming back to them in the future. However, I guess that most of us/you want to use a mileage card. Then you need to negotiate on the strength of your current/future relationship with the dealership. This will of course depend on the brand of vehicle you are buying as some companies are just more interested in moving their crappy metal than keeping a customer happy. Or, you can really be nasty like the OP above suggests - but I wouldn't do that unless you plan never to return to that dealership.
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You might try financing the vehicle through a company that accepts your CC as a method of payment. Then simply make payments as rapidly as your CC will allow ( ie 5 transactions/day ). You'd want to ensure that the finance company won't charge a penalty for early payoff.
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You might try financing the vehicle through a company that accepts your CC as a method of payment. Then simply make payments as rapidly as your CC will allow ( ie 5 transactions/day ). You'd want to ensure that the finance company won't charge a penalty for early payoff.
now THAT is a good thought. any tips on a finance company? I'll do a search right now...
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Finance companies tailored to those with "less than perfect credit" are going to charge higher interest rates ( maybe 9% or more ), but will be more liberal on methods of payment. At those rates, they can afford to eat the transaction costs associated with taking a CC as payment. If you complete the process in a timely manner, the entire transaction may, or may not, ever show on your credit report, which is something to consider.
If you can pull this off, whatever finance company you chose is going to blacklist you ( or something similar ), so make sure you dont ever wish to do business with them again. They are going to lose money, $180/10k financed or so ( due to the CC transaction fees).
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in the end, I needed the car more than I needed the reward points. The dealership let me put $3000 on a credit card but was quite clear that was a non-negotiable max. As pointed out in this thread, they wanted to protect themselves against 30 day return policies and other consumer protection laws. Wouldn't even let me pay for my prepaid maintenance portion with the credit card, even though he had to run that separately through the service department. All in all, I don't blame them.
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Honda dealer let me put 50% of purchase price on my Diners Master Card; about $11,000, after I threatened to walk.
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The car dealers are even wary of accepting checks to pay for cars. They double checked my check to make sure it wasn't one of those checks CC companies usually hand out in your statements.
The dealer should just pass the transaction costs to the consumer.
They are negotiating the price of the car anyways. If someone wants to buy the car with a CC they should let them but pad the transaction costs into the price of the car.
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The dealer should just pass the transaction costs to the consumer.
They are negotiating the price of the car anyways. If someone wants to buy the car with a CC they should let them but pad the transaction costs into the price of the car.
Remember, it is not just the transaction costs. When you charge something on a credit card, many of the cards offer extended warranty, replacement if lost, etc.
I am sure that neither the card company nor the car dealer wants this obligation. Just look at how many disputes there are relative to "lemon" laws.
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If you really want to be pushy with the dealer, you can tell them that it's a violation of the Visa/MasterCard merchant agreement to impose a minimum or maximum charge amount. Just like it's against the rules for the corner pizzeria to deny a $3 charge, it's against the rules for the Benz dealership to deny a $50,000 charge. You could contact your credit card company and have them intervene if you insist on charging the full amount of a car (after all, the CC issuer would love to earn the merchant fee for such a purchase!)
Of course, doing this won't put you on the dealer's good side, but if you want to play hardball, they're (technically) required to accept all charges, no matter how big or small, if they accept credit cards for any purchases.
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Dealership choose not to let the consumer use credit card they lose out on the interest they would get if they hold you to a 5 year contract
think about it
this is if someone has a good Credit and can get a low apr
example you have a car at 14999.00 have a interest rate of 6.99 % this is just a example
take .0699 divide by 365 X 30 (days in a normal billing cycle) X 14999.00 the amount this figures your interest per month
that is 86.17 est of FC a month times 60 months that equals 5170.20 that you are paying to the dealership they are losing on.
You use that credit care with 00.0 F apr for 12 to 15 month all that pymt goes to the principle
even if you use a Balance transfer for 3.99f for the LOL you still saving money and Dealerships like sticking it to the consumer and with You Visa and or Mastercard You are offer extended warranties
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A Toyota dealer let me put about $3000 on my Citi AA MC. Yes I did it for the miles.
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I've put $2000 down on a credit card, that is the max they would allow.
Bought a car a few months ago and they would only allow 2000 on the card.
fuzz
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We bought a TSX at the Acura dealer in Anchorage in May of 2004 and they let us charge the whole thing ($28,000) with no extra fees. There was an AMEX double miles promo at the time so we bagged a whole bunch of miles and just paid off the bill when it came the next month. Sweet.
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No UA credit card will allow you to Earn miles on Balance Transfers
No always true, based on my experience. Not $-for-$, but they did give me some bonus miles.
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Let me see if I understand this. Some auto dealers will not allow you to charge anything on a credit card. Others will allow you to charge from $1 to the total value of the car. The evidence is inconclusive (sometimes yes, sometimes, no) regarding whether or not the use of credit cards is somehow figured into the actual final price of the car. Does that about sum up the totality of discussions among the many, many threads on this topic? Need we continue? Oh, I forgot. We need at least one more anecdotal report from the person in Iowa who not only charged his/her car completely but also received a front row seat to the Rolling Stones as an added bonus. I wonder if that offer was targeted? :rolleyes:
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Recently, a Toyota dealership allowed us to put $15,000 down as long as we purchased that day. I stated that I was leaving and actually made it to the door before they allowed me to complete the purchase. Car dealers are their to sell cars. You just have to have the guts to get up and walk out. Even if there was a 3% fee on my transaction, I am quite certain there was plenty of markup on that vehicle. Either way, all you need to do is simply let them know another dealer down the street would allow it and you are going to buy from them. Give it a try, silly as it sounds, it is almost fun. One for the good guys...
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about two years ago I used my UA Plat. CC to pay $20,000 towards a car. No problem with the dealer (Saturn). I had the cash in a savings and paid the CC so I didn't get any interest on the CC. I was originally going to just take the cash out of savings and pay for the car, but figured I'd use the CC to pay for the car and get the mileage.
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The amount that you can charge onto your cc all depends on how much money the dealership is making off of the sale.
I purchased a Honda Accord for $2k under invoice, so they only let me charge $2k on the card.
Dealerships do have special agreements with credit card companies to limit transaction amounts.
If you read your T&C carefully, you'll see that your 'extended warranty' excludes vehicles.
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I have a friend who bought a new BMW (over $30K) and put the whole thing on a credit card.
I have another friend who bought a Honda, put half on a credit card, and financed the rest at the dealer.
I don't have a car, but at least one of my credit cards specifically excludes cars from the warranty extension.
These aren't a lot of data points, but maybe:
- BMW dealers have high margins, and so don't mind credit cards.
- Dealers make money off financing, so don't mind credit cards if you finance the other part with them.
- You probably can't get free maintenance out of a credit card warranty extension program, though if anyone *has*, I would love to hear about it!
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Not this discussion again! All of you have missed one of the main reasons dealers do not like to let people charge the entire car or a large amount to a credit card. A cardholder can intiate a dispute (called a chargback to dealer) and the merchant is not paid until the dispute is resolved or the item purchased returned. The fact that legal ownership of the car can be converted to another party by signing the title limits a car dealers recourse on recovering the item purchased which would be the car.
So no across the board rule on acceptance just one of the real reasons they hesitate. So yes you can charge 2,5,10k and even the entire car depending on what the risk the dealer wants to take and how bad they want the sale.
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A cardholder can intiate a dispute (called a chargback to dealer) and the merchant is not paid until the dispute is resolved or the item purchased returned.
Can you initiate a chargeback if you actually sign a credit-card agreement? I thought that you could only dispute a charge if it was a credit card or internet purchase. I'd been told that signing a credit card receipt (where you agree to pay the merchant whatever amount) is as good as giving the merchant cash.
[Specifically, I once joined a video store that wanted me to sign a blank credit card imprint. I called my credit card company to ask if I would have any recourse should this slip be misused--for instance, charged $10,000--and they said not really, that it was essentially like giving someone a blank check. I ended up leaving a cash deposit instead.]
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I did it this year, January 2006 on an SUV. After deducting the trade, paid the entire $23000 on Amex Gold. Negotiated for 6 hrs, haggled with the sales manager for 3 hours and they put the entire amount on the card. Card was approved before I could even contact Amex to let them know it was coming.