If you have a high enough limit, can you buy a car with a credit card?

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Fritzo

Lifer
Jan 3, 2001
41,743
1,940
126
Originally posted by: z0mb13
Originally posted by: RossMAN
Originally posted by: KingNothing
Originally posted by: RossMAN
Originally posted by: KingNothing
Originally posted by: RossMAN
It's possible but it's not the same as paying with cash or loan financing.

You'll have less bargaining power and they won't be thrilled about eating the merchant fees.
So merchants are charged a percentage of each transaction? I thought I'd read that but wasn't sure.
Yes, why do you think CostCo does NOT accept credit cards (except for Amex)?

They pass the 2-3% savings onto their members :heart:
Amex doesn't charge the fee?

BTW, I'm soon moving to a city with a CostCo. Any tips?
Amex also charges merchant cc processing fees but they are partnered with CostCo. Previously CostCo was partnered with the ugly bastard step child Discover card.
I was pissed when costco stopped accepting discover..
Clerk: That'll be 9:95
Fry: Do you accept Visa?
Clerk: Oh, that hasn't exsisted fror over 500 years
Fry: American Express?
Clerk: 600 Years
Fry: MasterCard?
Clerk: 400 years
Fry: Discover Card?
Clerk: Oh, I'm sorry, we don't accept Discover.
 

b0mbrman

Lifer
Jun 1, 2001
29,471
1
81
Originally posted by: AgaBoogaBoo
Merchant fees are preferred to be avoided with big purchases like that

Otherwise you could make mortgage payments on CC, imagine points you'd get for that! :shocked:
My lender doesn't accept credit card :(
 

mundane

Diamond Member
Jun 7, 2002
5,603
8
81
Originally posted by: Sphexi
My dad paid for my college education on his Discover charge. He basically charged it, then I paid him before the end of the month, so he'd get major points and airfare miles and whatnot.
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.
 

jaedaliu

Platinum Member
Feb 25, 2005
2,670
1
81
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.
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.
 

Scarpozzi

Lifer
Jun 13, 2000
26,319
1,707
126
Well...if you can buy it....run to a bank and finance it as a new car...right a check to your credit card company...

It's a great idea. I'll try it on my next car purchase. :)
 

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.
 

Homerboy

Lifer
Mar 1, 2000
30,572
4,605
126
Ive done it (well 90% of the car) and then just paid off the CC billl when it arrived next month. Earned some sweet $ for my kids college fund using the upromise.com card
 

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.
 

Soapy Bones

Senior member
Dec 4, 2003
397
0
76
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.
 

GeneValgene

Diamond Member
Sep 18, 2002
3,887
0
76
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.
 

yougotdeals

Golden Member
May 2, 2004
1,262
0
0
Originally posted by: KingNothing
I was just thinking about that...seems like if you had a card that gave cash back or airline miles, buying a car would get a nice kickback. Anyone think a dealership would actually take a credit 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
81
Originally posted by: Mill
Originally posted by: Fritzo
I bought a car with home equity once. Interest is tax deductable, so 0% financing :D
Not true. Deductible != credit.
Is it even deductible? http://www.bcpl.net/~ibcnet/equity-tax-advantage.html

Home equity loan mortgages used for significant home improvement projects or acquiring a second home or securing a vacation home may be 100% interest deductible up to the first $1 million of such debt
 

dullard

Elite Member
May 21, 2001
24,329
2,558
126
Originally posted by: lather164
it is my understanding to be illegal to charge someone extra for credit card processing fees.
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).
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.
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
Originally posted by: lather164
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.
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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