New car purchase with credit card

Discussion in 'General Discussion | Credit Cards' started by Mrlasssen, Apr 11, 2014.  |  Print Topic

  1. Mrlasssen

    Mrlasssen Silver Member

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    Has anyone had experience buying a new car with their credit card? Never thought it was possible but did it and the dealer was happy to accept it. The car was purchased through the Costco Auto program so I feel the price was fare. Any thoughts from the readers.
     
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  2. MX

    MX Gold Member

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    If your cc price was comparable to an all cash purchase, then it's definitely a good deal! Any idea if the cc fees were absorbed by Costco or reduced by the banks?
    In my experience, dealers were willing to accept a cc up to $5K. A cc charge above that amount would require an offset of the dealer's bank fee.
     
    Last edited: Apr 12, 2014
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  3. blackjack-21

    blackjack-21 Gold Member

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    A few years ago when I bought my most recent new car, all the dealer would then allow was $5,000 for the down payment on my AMEX, which I used to get the MR points. Shortly thereafter the dealer stopped taking AMEX for a purchase or service because of the higher fees that AMEX charged them versus VISA or MC.
     
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  4. youpaiyou

    youpaiyou Silver Member

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    5k was the most my dealer allowed via CC.
     
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  5. jbcarioca
    Original Member

    jbcarioca Gold Member

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    I have purchased three cars with credit cards, all three with an Citi AAdvantage MC. I also bought a house with the same card, although the house took a special arrangement with Citi and a prepayment to Citi from me, it still went through. In all four of these large purchases the sellers did not desire the cards. I had prices negotiated and agreed prior to presenting the card for payment. They all tried to refuse but i offered the card or no deal and they all accepted. I am about to try it a fifth time, this time for European delivery of a Range Rover, which is processed via a UK dealer. I've not mentioned my payment plans and will be interested to know if I can get away with it. I hope so, but will be unsurprised if it does not work this time.
     
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  6. alfagirl

    alfagirl Gold Member

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    Maybe the US is stricter. I bought a C4S cab last week and the most they would allow was $5k, period. We had to pay the balance by wire.....
     
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  7. jbcarioca
    Original Member

    jbcarioca Gold Member

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    All of these transactions were in the US. One car in California, two cars and the house in Texas. All were done remotely and were purchase I made as gifts for relatives. I know now and knew then that normal limits by sellers were far stricter. IME most sellers would rather have the deal than refuse payment, however, they will invariably try not to accept American Express due to the higher discount rates. For the same reason they will sometimes refuse to accept business cards, so I am told, although I have not tried that myself.
     
  8. alfagirl

    alfagirl Gold Member

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    Unfortunately there were more willing buyers than available cars, so that ultimatum would not work.
     
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  9. Counsellor
    Original Member

    Counsellor Gold Member

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    On my last car purchase, the dealer let me put the $10K down payment on my SPG AMEX. I'm sure they would have preferred cash or a check, but they really wanted the sale to go through (off the lot at end of model season).
     
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  10. jbcarioca
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    jbcarioca Gold Member

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    I know that one well. I'm guessing that will happen with my Range Rover since there seems to be a three month waiting list for my specific model, probably influenced because I am ordering a 2015 model that enters production next month. We'll see anyway; it never hurts to try, does it?
     
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  11. alfagirl

    alfagirl Gold Member

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    True, it certainly won't. Good luck!
     
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  12. maksim

    maksim Silver Member

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    How the heck do you purchase a home with a credit card? =)
     
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  13. miles and smiles
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    miles and smiles Gold Member

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  14. jbcarioca
    Original Member

    jbcarioca Gold Member

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    The house was part of a development. They accepted cards for some ancillary services so i tried. It ended out working. I doubt that i'd ever manage to repeat that one. It was in Texas USA, a loction rarely bound by precedent elsewhere in my limited experience. OTOH my sister was quite happy.
     
  15. ariosto

    ariosto Silver Member

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    i was able to put Down 10K down on CC :cool:
     
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  16. PhoenixDown

    PhoenixDown Silver Member

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    My dealer said they limit it to 7k. I only pushed through 4k as I was getting Toyota 0% financing.
     
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  17. adrianors

    adrianors Silver Member

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    My dealer accepted a down of 6k on my Dodge two months ago.. and was through AMEX..
     
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  18. frequentflyer

    frequentflyer Silver Member

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    I have used AMEX Delta Reserve three times, $2500. I was told that's max in New York because more would be an unsecured loan.
     
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  19. jbcarioca
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    jbcarioca Gold Member

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    One of my cars was purchased in NYC. There was resistance but it did go through for an amount >$ 50k
     
    Last edited: Apr 21, 2014
  20. LAM

    LAM Silver Member

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    Just received an e-mail from AmEx. The are starting a new car buying service which will guarantee at least $2000 will be able to be charged on an AmEx. The amount will depend on the dealership you are dealing with.
     
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  21. Singapore Flyer

    Singapore Flyer Silver Member

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    got the same exact email I imagine. Was going to post as well here.

    Sent from my iPhone using milepoint
     
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  22. bigx0

    bigx0 Gold Member

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    I'm surprised they would put that in writing since it's practically an invitation to dealers to cap it at 2K.
     
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  23. othermike27

    othermike27 Silver Member

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    It's actually better. My email includes this line under card member benefits: "Each Certified Dealer displays how much they accept on an AX card from a minimum of $2,000 up to the full purchase price."

    Certainly worth checking this claimed "display" to see what can be charged. But I'm not sure I would use the AX buying service, since my experience is you can do better on your own by being stubborn/uninterested in shiny new metal. And of course it doesn't hurt to wander in at the end of the month/quarter/year, when there might be a sales program deadline coming up.
     
  24. satman40

    satman40 Gold Member

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    5k is the best I have ever done, but I have bought many houses with CCs, a piece at a time...

    I suspect many of us has paid for vehicles a piece at a time also w CCs.
     
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  25. bigx0

    bigx0 Gold Member

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    Oh, good, I like that wording much better -- I think there's more of an incentive for one dealer to accept a larger CC payment than the "other dealer" that way.

    I asked a local dealer about these buying services. I was told they treat an inquiry from a buying service pretty much the same as any other lead. If the service allows negotiation they get the customer in and treat them similarly. If they have to quote a price ahead of time they do so but the price isn't typically their lowest since, among other things, they have to pay commission to the service. And there is STILL the option of selling extras like undercoating etc.

    On the other hand, not sure I believe their answer to my questions and more than I believe most dealers' answers!
     
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