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Old 06-04-2010, 12:58 PM
 
Location: Denver, CO
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Do dealers still allow you to charge some or all of your new car purchase on a credit card? I was wondering if I can do this and then pay off the CC when I get the monthly bill to earn a nice hefty reward.
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Old 06-04-2010, 01:07 PM
 
Location: Purgatory (A.K.A. Dallas, Texas)
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No. They usually have a $5,000 maximum.
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Old 06-04-2010, 01:22 PM
 
Location: Scottsdale, AZ
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What many don't understand is that the credit card companies charge the merchant anywhere between 2%-3% of the purchase price...so your dealership will be paying $400 in fees on a $20K purchase. Most dealerships allow up to $5000 to be put on a card but with the current credit crisis, many dealers around here will only allow $3000.
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Old 06-04-2010, 01:25 PM
 
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I used a CC for a deposit in the past and the max they would allow was $2,750. The merchant fees kill them on the big transactions. Best just to find out how much they would let you use and put the max on there to get the points.
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Old 06-04-2010, 03:44 PM
 
1,963 posts, read 5,139,750 times
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I was sure my parents charged their downpayment when they bought their X5, but this was 3 yrs ago and with the whole Wall St. financial debacle things may have changed.

I'm surprised some enterprising CC company like FirstBank hasn't teamed up with certain dealers in major cities to offer points on purchase with a card. Seems like a win-win for both the dealers & banks.
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Old 06-04-2010, 03:50 PM
 
Location: Purgatory (A.K.A. Dallas, Texas)
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Quote:
Originally Posted by smokingGun View Post
I was sure my parents charged their downpayment when they bought their X5, but this was 3 yrs ago and with the whole Wall St. financial debacle things may have changed.

I'm surprised some enterprising CC company like FirstBank hasn't teamed up with certain dealers in major cities to offer points on purchase with a card. Seems like a win-win for both the dealers & banks.

Costs money to charge on a card.
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Old 06-04-2010, 04:11 PM
 
Location: NYC & NJ
747 posts, read 2,523,357 times
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Quote:
Originally Posted by smokingGun View Post
I was sure my parents charged their downpayment when they bought their X5, but this was 3 yrs ago and with the whole Wall St. financial debacle things may have changed.

I'm surprised some enterprising CC company like FirstBank hasn't teamed up with certain dealers in major cities to offer points on purchase with a card. Seems like a win-win for both the dealers & banks.
CCs are mostly unsecured debt. With auto loan defaults increasing (even on secured loans with the threat of one's car being repossessed), a bank would have to be insane to 'team up' with dealers by lowering their CC merchant charges, paying rewards/points to customers, and then losing X% of entire loan balances to defaults (with very little recourse).
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Old 06-04-2010, 04:26 PM
 
Location: SW Missouri
15,861 posts, read 32,987,533 times
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Quote:
Originally Posted by Moonwalkr View Post
Do dealers still allow you to charge some or all of your new car purchase on a credit card? I was wondering if I can do this and then pay off the CC when I get the monthly bill to earn a nice hefty reward.
We pay for *everything* with our rewards card - even a pack of gum or a 6 pack of beer! But we pay off our balance every month. It would be nuts to pay 12 percent interest (our interest rate) on a car over the long-term. I seriously doubt that the amount of points that you would receive would offset the amount of interest paid. I'm sure there is a math genius here (or a financial consultant) who can come up with the exact figures. But my guess is that you'd wind up in the hole, for sure.

20yrsinBranson
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Old 06-04-2010, 04:29 PM
 
Location: WA
5,567 posts, read 23,260,751 times
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Dealers do not want to pay the CC companies. I have tried to buy both new and used cars with CC as I have the limit and the cash to pay the bill but no dealer would agree.
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Old 06-04-2010, 04:33 PM
 
2,736 posts, read 4,467,104 times
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Quote:
Originally Posted by 20yrsinBranson View Post
We pay for *everything* with our rewards card - even a pack of gum or a 6 pack of beer! But we pay off our balance every month. It would be nuts to pay 12 percent interest (our interest rate) on a car over the long-term. I seriously doubt that the amount of points that you would receive would offset the amount of interest paid. I'm sure there is a math genius here (or a financial consultant) who can come up with the exact figures. But my guess is that you'd wind up in the hole, for sure.

20yrsinBranson
I think the OP's plan IS to pay off the balance and reap the rewards. I maxed out my CC and did the same when I bought a a car.
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