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I've done a lot of research on the topic and it seems like most dealers will allow a max of $2-5K on a CC then the rest is cash/financed. The assumption is that the dealer doesn't want to pay the 1-3% merchant fees to the CC company for a $20-40K transaction which will eat aware at their margin.
Any thoughts?
Anyone used a CC to purchase their car?
Is it strictly dealer dependent?
I have done it, but not for a new car. I had a dealer refuse when I wanted to put a $36,000 car on a CC. I was getting the money to pay it off a month later, so I did not want a loan. I asked for a loan with no early payment penalty, and they could not get one for me. Finally, we arrange a loan with no early payment penalty buy with a 2% origination fee with $10K paid as a down payment on my CC. I paid 1% on the $26K loan and the dealer lowered the price by part of 1% (to equal 1% of 28,000) to make a workable deal. However we had to walk out before they would agree to that. They really wanted to sell us the car, it was a conversion van and they really needed to sell it before the end of the year. They had already dropped the price by about $11,000. They have huge profit on those things, but at the end of the year, they have to unload all of them. We ended up paying only a few thousand over the cost of the van without the conversion and the conversion was stickered at $18000. The deal brought the price up a few hundred dolalrs, but is was already a massively discounted deal, we were happy (at first, until the van started falling apart - but that was a Dodge problem, nothnng to do withthe deal.).
I bought a new 1979 Lincoln Town Coupe' new with an American Express card. It was the first time for that dealership to ever sell a car on a credit card. Why spend the bucks on an extended warranty when AE covered the purchase for one year. At the time, I was putting loads of miles on a vehicle quick. Ended up with a different set of circumstances and the car ended up a garage queen. But that ol' Lincoln was quite the road hog and COMFY!
Thinking about it, I had a client buy a $300K plus ferarri on the way to pick up a settlement check. I am guessing he used a credit card. He was 45 minutes later getting to my office because he stopped and bought the Ferarri on the way in. He was not there long enough to go through a loan process for that amount and since he did not have the check yet, he probably did not write a check. If there are credit cards with that kind of limit, he probably has one. I will have to try to remember to ask him next time we talk.
We recently just tried on the M3, (thinking lots of FREE miles!) and the Dealership would only allow $5000. They said it was "policy".
Did you walk out, or did you go ahead and finance the rest?
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