RIT (college I just graduated from) sent out a notice that they would no longer be directly accepting cc for tuition payments. Apparently they've been eating the merchant fees, which added up to millions, which was passed along in tuition hikes to the rest of us. Now they require cc payments to go through a 3rd party, and the payer has to accomodate the 2 or 3% fee.
er, the APR on your typical credit card is above 18%. Once you put $20,000 on your card, the minimum payment will go way up, AND you'll end up paying back 3x or more in interest than if you just got a normal loan from the dealership.Originally posted by: DAGTA
Another thing: if you are able to do this, tell the dealer it is your intention. When they get uncomfortable, tell them you'll go for a loan through the dealer if they will beat the APR on your credit card.
Keep in mind that your minimum monthly payment on a 20,000 credit card loan could be higher than a car payment on a 20,000 loan.
kranky
Elite Member
- Oct 9, 1999
- 21,000
- 111
- 106
I just was car shopping for a couple weeks. Three dealers had signs posted saying they would only accept CCs up to a certain limit (two were $5K, the other was $3K).
My guess is that if the dealer allows you to charge the whole thing, it's only because the dealer knows he has enough profit in the deal to afford it. In other words, you could have negotiated the price down by the amount of the merchant fee.
My guess is that if the dealer allows you to charge the whole thing, it's only because the dealer knows he has enough profit in the deal to afford it. In other words, you could have negotiated the price down by the amount of the merchant fee.
Not true. Deductible != credit.Originally posted by: Fritzo
I bought a car with home equity once. Interest is tax deductable, so 0% financing
Demon-Xanth
Lifer
- Feb 15, 2000
- 20,551
- 2
- 81
I could probably buy a Kia if I asked the CC company to up the limit like they've been asking me to.
Having experience in the automotive/recreational vehicle sales industry I figured I'd jump in.
We have people that want to charge any dollar amount, from $5000 for a camper up to sometimes even 25-30k for something more luxurious. It always happens that they disclose that intention right at the final part of the deal and we would have to eat those fees, it is my understanding to be illegal to charge someone extra for credit card processing fees. I dont remember the exact amount but those fees end up being a pretty big chunk and can make a difference from profit to loss on some deals, which is why dealers frown upon accepting them.
What we tend to try to push to a buyer with a credit card is to request the checks that they can get, which draw upon their credit card. It works just like a check for the business and does not work differently for the customer either, although I doubt you qualify for points/air miles/etc.
We have people that want to charge any dollar amount, from $5000 for a camper up to sometimes even 25-30k for something more luxurious. It always happens that they disclose that intention right at the final part of the deal and we would have to eat those fees, it is my understanding to be illegal to charge someone extra for credit card processing fees. I dont remember the exact amount but those fees end up being a pretty big chunk and can make a difference from profit to loss on some deals, which is why dealers frown upon accepting them.
What we tend to try to push to a buyer with a credit card is to request the checks that they can get, which draw upon their credit card. It works just like a check for the business and does not work differently for the customer either, although I doubt you qualify for points/air miles/etc.
i tried this when i bought my new accord a year ago. i wanted to put the whole thing on my credit card, but the only let me put a portion of it on the card.
The thing is that many cashback cards put a cap on how much cash back you can actually earn in a calender year.
mugs
Lifer
- Apr 29, 2003
- 48,903
- 19
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Is it even deductible? http://www.bcpl.net/~ibcnet/equity-tax-advantage.htmlOriginally posted by: Mill
Not true. Deductible != credit.Originally posted by: Fritzo
I bought a car with home equity once. Interest is tax deductable, so 0% financing
dullard
Elite Member
- May 21, 2001
- 24,329
- 2,558
- 126
There isn't a specific law against charging for a CC. However, it will violate your contract with most CC companies (except Visa if I remember correctly). And breaking a contract can lead to civil lawsuits or at least being barred from using a CC with that company ever again (which is bad for your business).
They work VERY much differently. The customer must pay about a 3% fee to use them, interest is charged the day the check is cashed without a grace period, etc. Basically those checks are the biggest ripoff to the customer ever. Yes, sometimes they give special discounts on their checks, but it is very rare that it doesn't still cost the consumer money to use the checks.
mugs
Lifer
- Apr 29, 2003
- 48,903
- 19
- 81
That's not cool on their part. It is against the agreement the merchant's have with the credit card company to charge extra (gas stations used to charge extra for credit), but I'm not sure if it would be against the agreement to give less of a discount than previously agreed upon when using a credit card, just like a dealer might be more or less willing to bring the price down if you're paying with cash vs. financing.
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