Jump to content

so you can use a CC to buy a car


Recommended Posts

i dont know if it was folklore or what but i always thought you cannot use a CC to buy a car. but my gf just bought one with 5K on her 2% CC and 27K in cash. she said wasnt nailed for a fee but maybe since cars are overpriced it's built in ;)

Link to comment
Share on other sites


It has long been possible, it is just that many dealerships WON'T.  And there are some that will cap the amount you can charge with others wanting to recap the fees they pay.  The excuses some will use are truly barf-inducing.  Those are the ones I wouldn't hesitate walking away from. 

 

Hell, for a period of time, at least between 2005 and 2010, you could even pay the FoMoCo loans using a Chase card (since they had the back-end during the time I had a note on one of the cars with them).  This had stopped by the time I got the F-Type (financed through Chase). 

Link to comment
Share on other sites

  • Admin
55 minutes ago, luckydriver said:

i dont know if it was folklore or what but i always thought you cannot use a CC to buy a car. but my gf just bought one with 5K on her 2% CC and 27K in cash. she said wasnt nailed for a fee but maybe since cars are overpriced it's built in ;)

So she spent 32K to purchase transportation?   And of that amount only 5K was via credit card?

Link to comment
Share on other sites

  • 1 month later...

Other than the % paid to process the card which is usually around 3% of the charge, the dealer is open for the possibility of a chargeback as there is no lien placed on the car compared to a traditional car loan.   In the event of unauthorized use of the card or other cardholder dispute whether legitimate or not, the dealer could be subject to a total loss if they were to take full payment of a car by credit card.  

 

This is not to say that no dealer would entertain the possibility of doing it or to say that no dealer has ever done it, but this is the reason why most dealers wouldn't accept a credit card other than for a deposit, down payment or other small % of the purchase price.  The dealers that I have done business with usually have a max exposure of anywhere from $2k to $5k for a credit card.  Some that I have dealt with,  will take a higher amount with a debit card but no more than $5k max.

Link to comment
Share on other sites

21 hours ago, direct said:

Other than the % paid to process the card which is usually around 3% of the charge, the dealer is open for the possibility of a chargeback as there is no lien placed on the car compared to a traditional car loan.   In the event of unauthorized use of the card or other cardholder dispute whether legitimate or not, the dealer could be subject to a total loss if they were to take full payment of a car by credit card.  

 

This is not to say that no dealer would entertain the possibility of doing it or to say that no dealer has ever done it, but this is the reason why most dealers wouldn't accept a credit card other than for a deposit, down payment or other small % of the purchase price.  The dealers that I have done business with usually have a max exposure of anywhere from $2k to $5k for a credit card.  Some that I have dealt with,  will take a higher amount with a debit card but no more than $5k max.

That potential charge-back situation is easily remedied by filing the appropriate felony charge...

 

 

Link to comment
Share on other sites

19 hours ago, centex said:

That potential charge-back situation is easily remedied by filing the appropriate felony charge...

 

 

Why would a car dealer want to deal with that aggravation as well as the attorney and court costs when they could just do what they are doing now...limiting their exposure to credit card purchases.

Link to comment
Share on other sites

3 hours ago, direct said:

Why would a car dealer want to deal with that aggravation as well as the attorney and court costs when they could just do what they are doing now...limiting their exposure to credit card purchases.

They would have no attorney fees or court costs.  Felony charges are prosecuted by the State. 

Link to comment
Share on other sites

  • 1 month later...

I once put 10k on an Amex card for a car that was a little over 20k, so almost 50% on the card. 

 

It was before all the crazy market stuff and found a dealer that was desperate for a sale. I got it slightly less than msrp. They said I could put the entire thing on the card as long as I didnt expect to negotiate the price down. 

 

Not sure what their percentage was on the card but 3% would have been $300 so I'm guessing it was probably around that. 

 

Nowadays I see 5k being the max at a lot of dealers. 

 

 

As a car dealership owner said, if someone is over paying for the car, they will gladly let them charge the entire thing. The over payment more than makes up for the fees for most cars 

 

I guess it depends on quite a few factors 

 

 

Edited by Wilburmason
Spelling
Link to comment
Share on other sites

  • 2 weeks later...
  • 4 months later...
8 hours ago, Knight said:

Why would there be an issue with buying a car with a CC?

Dispute?

that is one of the concerns. Then some dealerships also claim it is due to the transaction fees they pay. Once I offered to pay more for the car to offset the fees and the dealership people could not get that past their corporate policy folks (autonation).

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share




  • Member Statistics

    • Total Members
      185006
    • Most Online
      2046

    Newest Member
    Taxcoach
    Joined
×
×
  • Create New...

Important Information

Guidelines