Do main dealers accept credit cards for buying a car?

[truck71]

rix said:

Mercedes in particular... I'm considering buying but the PCP rate is at 5.9% which means funding a 20k debt for 2 years at a cost of approx £130 of interest a month in real terms.

Considering bunging the whole thing (or at least the balance after my intended cash deposit) on a credit card and transferring balance if I need to at the end of a zero rate period.

I know I could just ask, but dunno whether it's generally a complete no no!

When I bought a Cayman (new) I took Porsche finance as it helped with the cap ex discount. I then paid the finance off before accruing interest using an interest free credit card. Porsche were ok with this but I could only do so in 3k lumps, I phoned the nice lady everyday until it was cleared. Worked a treat.

[Granfondo]

rix said:

It will be about a 25% discount on list tho not sure if mercedes finance see it as a deposit contribution linked to the PCP! or whether they just finance whatever is needed. The 5.9% doesn't seem that amazing so they may possibly make something out of it which offsets some of the discount.

2 years motoring at 10k per year, PCP route with £7k up front would mean a total cost of £9928 (or 3 years = £13381). Alternatively I could lease, all things being equal for £7859.

Is leasing the no brainer it seems to be? I'm drawn to 'ownership' just because it seems more sensible tho clearly the sums suggest otherwise!!

Any idea if mercedes GFVs tend to be optimistic? If I was likely to have a bit of equity over the £20k bubble then I'd probably go PCP... confused!!

Usually optimistic.

[RKDE]

When I purchased my car this year I was going to use the credit card for the £5k limit but the garage did want the 3% so I just put it on the debit card.

I only wanted to use the credit card for the points / vouchers we would have got and then pay it off immediately.

I'd suggest its not the way to buy a car. If you need a car and can't afford it then I guess you are going to go into debt. I guess in some instances a credit card can be a cheap way if you get 12 months interest free

Dealers will normally accept but will charge a few percent

[v8250]

shake n bake said:

Mr Tidy said:

If you ain't got it, don't try to buy it!

Do you have a mortgage? It makes me laugh when the 1920's minded idiot rolls along and spits out this drivel, in your world this country and most developed countries would be in a far worse state than they are currently.

You'll find Mr Tidy's not relating to a value gaining asset, a house. He's referring to a continuously decreasing asset, the modern car...especially one that's financed to the hilt and will be worth 50% of showroom value in a few years time. Excluding classic/period/historic cars there are very few, if any, cars that hold their value. I have never understood why someone would want to be borrow money, irrespective of how it's financed, on a constantly decreasing asset; it is sheer madness. Excluding the main family home, if you can not afford something, do not buy it.

Re' your observation 'in your world this country and most developed countries would be in a far worse state than they are currently'...this would not be the case. If nation individuals and national Govt's had shown considerably greater financial prudence than they have done over the past 30-40 years we would not be in the st of inescapable financial st that we're in today. Today, the UK's in debt by £1.6bn...that's 82% of GDP and we have no way of paying this debt...in the same way most car drivers who borrow money to buy a car they simply can not afford have no way of ever affording to buy a car they 'want'. It is incredulous to believe that so many people are happy to 'piss-away' their hard earned monies to pay the salaries of finance company employees in order to have a new car on the driveway.

Edited by v8250 on Sunday 28th June 08:25

Edited by v8250 on Sunday 28th June 08:26

[rix]

Yes, its a car I want (rather than need). No I can't afford it insofar as cash in the bank, but I can afford the depreciation/interest. That's a choice which I'm happy with. FWIW my Monaro has definitely appreciated in value since i bought it but it certainly wasn't bought with that in mind - neither will this car!

The intention would be to buy on a new credit card with upto 20 or so months interest free on new purchases, then if I needed longer to pay it off, would just transfer the balance to a new card at a minimal fee. If I could do this I'd save a good £2000+ in interest over two years.

[v8250]

rix said:

Yes, its a car I want (rather than need). No I can't afford it insofar as cash in the bank, but I can afford the depreciation/interest. That's a choice which I'm happy with. FWIW my Monaro has definitely appreciated in value since i bought it but it certainly wasn't bought with that in mind - neither will this car!

The intention would be to buy on a new credit card with upto 20 or so months interest free on new purchases, then if I needed longer to pay it off, would just transfer the balance to a new card at a minimal fee. If I could do this I'd save a good £2000+ in interest over two years.

Well done Rix, you've given an honest hands up that you want something that is currently unaffordable. You can, like many others, afford the loan repayments...but not the purchase. Out of interest [pun intended] have you calculated your total loss over the finance period? If not, do this. Then, imagine I take that money...your hard earned money...and burn it. You'll never recover this burning loss, once it's frittered away it's gone. Of course, if you're hell bent on going down the finance route, do it. But, if there's any chance you'll find a good second hand car that's affordable...really do consider this option. There are thousands of superb low mileage cars out there, highly spec'd [paid for buy others] and the vendors are desperate to sell. Remember, it's the cash buyer who controls the deal...in the same way the finance company controls your deal.

[shake n bake]

v8250 said:

Remember, it's the cash buyer who controls the deal...in the same way the finance company controls your deal.

You have seen way too many we buy any car adverts and bought the hype. Cash buyers do not get better deals, quite the opposite.

[rix]

v8250 said:

Out of interest [pun intended] have you calculated your total loss over the finance period? If not, do this. Then, imagine I take that money...your hard earned money...and burn it. You'll never recover this burning loss, once it's frittered away it's gone.

Yes..

rix said:

2 years motoring at 10k per year, PCP route with £7k up front would mean a total cost of £9928 (or 3 years = £13381). Alternatively I could lease, all things being equal for £7859.

Find me an as new, premium marque convertible (not essential I know but I want to enjoy that 2-3 hours of commuting each day) with known (virtually zero) running costs, good (45+ mpg) economy, which will cost me less than £8k for two years/20k...

[shake n bake]

v8250 said:

shake n bake said:

Mr Tidy said:

If you ain't got it, don't try to buy it!

Do you have a mortgage? It makes me laugh when the 1920's minded idiot rolls along and spits out this drivel, in your world this country and most developed countries would be in a far worse state than they are currently.

You'll find Mr Tidy's not relating to a value gaining asset, a house. He's referring to a continuously decreasing asset, the modern car...especially one that's financed to the hilt and will be worth 50% of showroom value in a few years time. Excluding classic/period/historic cars there are very few, if any, cars that hold their value. I have never understood why someone would want to be borrow money, irrespective of how it's financed, on a constantly decreasing asset; it is sheer madness. Excluding the main family home, if you can not afford something, do not buy it.

Re' your observation 'in your world this country and most developed countries would be in a far worse state than they are currently'...this would not be the case. If nation individuals and national Govt's had shown considerably greater financial prudence than they have done over the past 30-40 years we would not be in the st of inescapable financial st that we're in today. Today, the UK's in debt by £1.6bn...that's 82% of GDP and we have no way of paying this debt...in the same way most car drivers who borrow money to buy a car they simply can not afford have no way of ever affording to buy a car they 'want'. It is incredulous to believe that so many people are happy to 'piss-away' their hard earned monies to pay the salaries of finance company employees in order to have a new car on the driveway.

Yes, and the average family would also be sat on the floor in there house as there savings pot isn't full enough to buy a new sofa, the fridge and washing machine packed up within a month as well so it's either clean clothes or food I'm afraid kids. The lad that would have sold them the new white goods doesn't have a job so he can't afford to have the new brakes his dilapidated old death trap of a car. Follow where that money goes and it'll eventually stop someone spending money in every industry.
We could go on, you are presumably cash rich, so well done to you but for the vast majority of people a line of credit will make a difference for fairly basic things.

Edited by v8250 on Sunday 28th June 08:25

Edited by v8250 on Sunday 28th June 08:26

[FreeLitres]

v8250 said:

rix said:

Yes, its a car I want (rather than need). No I can't afford it insofar as cash in the bank, but I can afford the depreciation/interest. That's a choice which I'm happy with. FWIW my Monaro has definitely appreciated in value since i bought it but it certainly wasn't bought with that in mind - neither will this car!

The intention would be to buy on a new credit card with upto 20 or so months interest free on new purchases, then if I needed longer to pay it off, would just transfer the balance to a new card at a minimal fee. If I could do this I'd save a good £2000+ in interest over two years.

Well done Rix, you've given an honest hands up that you want something that is currently unaffordable. You can, like many others, afford the loan repayments...but not the purchase. Out of interest [pun intended] have you calculated your total loss over the finance period? If not, do this. Then, imagine I take that money...your hard earned money...and burn it. You'll never recover this burning loss, once it's frittered away it's gone. Of course, if you're hell bent on going down the finance route, do it. But, if there's any chance you'll find a good second hand car that's affordable...really do consider this option. There are thousands of superb low mileage cars out there, highly spec'd [paid for buy others] and the vendors are desperate to sell. Remember, it's the cash buyer who controls the deal...in the same way the finance company controls your deal.

v8250, while I currently follow your philosophy I don't think you should be forcing your views on others in the manner that you are.

I've been on both sides of this coin - not necessarily having loans/debt other than a mortgage but certainly spending such that money in = money out each month. Like many people in the country, as my wages increase my outgoings would rise to match. I had the TVR, nice watches, expensive holidays, etc.

A few years ago I changed my approach and became more savvy and cut my outgoings right back to the extent that I paid my £90k mortgage off in under 3 years and now have a generous savings pot. I've had to make sacrifices of course and I now drive a diesel company car with a very low tax burden rather than a V8 beast.

I don't regret experiencing those nice things in life but I'm content with my current situation of financial security, especially with a young family now. I would have been a bit annoyed reading your preaching just as I was about to buy my dream car (even though you are right of course).

Edited by FreeLitres on Sunday 28th June 09:31

[v8250]

shake n bake said:

You have seen way too many we buy any car adverts and bought the hype. Cash buyers do not get better deals, quite the opposite.

It has buggar all to do with these marketing type companies; it simple schoolboy economics. One should ever be looking for a misrepresented modern day 'deal'. One should be purchasing outright the right car for the right price. I fear, shakenbake, that you do not understand money, when to buy and when not to buy.

[anonymous-user]

whoami said:

Vipers said:

Oh well, must be a big difference, thanks for the clarification......................

There is.

Debit card = Free.

Credit Card = 3%.

Source ?
http://www.cardswitcher.co.uk/2014/10/uk-card-proc...

Local butcher is charged on debits but higher the throughput 'lower the cost', Baker charges 35p on debit card transactions under £5 which is clearly shown on the counter, they just need to change the poster to put to cover bank charges as is mentioned earlier in thread about the local shop.

Banks and card providers are skimming on many if not all transactions, where do you think your %cashback cards get the money from it certainly isn't the banks paying it out of the goodness of their hearts ?

[shake n bake]

v8250 said:

It has buggar all to do with these marketing type companies; it simple schoolboy economics. One should ever be looking for a misrepresented modern day 'deal'. One should be purchasing outright the right car for the right price. I fear, shakenbake, that you do not understand money, when to buy and when not to buy.

When is your next sermon oh wise Lord of general gassing? Please show me the light where once there was darkness in my bank account.

[PHlL]

rix said:

Any idea if mercedes GFVs tend to be optimistic?

Make sure you read your voluntary termination rights.

[daemon]

speedyguy said:

Banks and card providers are skimming on many if not all transactions, where do you think your %cashback cards get the money from it certainly isn't the banks paying it out of the goodness of their hearts ?

I dont think anyone said otherwise?

[anonymous-user]

Here is a tip that, for the cost of a phone call / email, could get you some benefit.

If you have an Amex card and the dealership will not accpet it - but would accept a VISA card (whether with a fee or not) - you should be straight onto Amex telling them how their inability to sell their service to the car dealer means you have missed out on the Reward points that you would have received if you had used the card

However you actually paid - if it (not just car dealers by the way, anything) doesn't take Amex, get onto Amex and make that case.

I have had over half a million Reward points from Amex as a result of this over the time I have had a card with them (which is a long, long time rather than me ever spending like a lottery winner btw).

[frodo23]

v8250 said:

Out of interest [pun intended] have you calculated your total loss over the finance period? If not, do this. Then, imagine I take that money...your hard earned money...and burn it. You'll never recover this burning loss, once it's frittered away it's gone.

But the money doesn't just disappear, what about everything on the other side of the equation? The OP will have had the experience of driving that car over a period of time, of looking at a car they have chosen, of effectively (if not actually) owning something that they specifically wanted. If that overall package was worth the cost then all is well.

We do this all the time in a variety of ways. Anyone who smokes literally burns hundreds or perhaps thousands of pounds every year with nothing to show for it. Anyone who drinks alcohol pisses their money away. Ever been on a nice holiday? Most people come away poorer than when they went, with no tangible or bankable reward. Sometimes the money is spent on the experience - on how it makes us feel - and we need to stop thinking that this somehow is not a worthy-enough reason.

[whoami]

speedyguy said:

whoami said:

Vipers said:

Oh well, must be a big difference, thanks for the clarification......................

There is.

Debit card = Free.

Credit Card = 3%.

Source ?
http://www.cardswitcher.co.uk/2014/10/uk-card-proc...


Local butcher is charged on debits but higher the throughput 'lower the cost', Baker charges 35p on debit card transactions under £5 which is clearly shown on the counter, they just need to change the poster to put to cover bank charges as is mentioned earlier in thread about the local shop.

Banks and card providers are skimming on many if not all transactions, where do you think your %cashback cards get the money from it certainly isn't the banks paying it out of the goodness of their hearts ?

"Source" of what?

[rix]

frodo23 said:

sensible stuff

+1!

[Buster73]

speedyguy said:

Source ?
http://www.cardswitcher.co.uk/2014/10/uk-card-proc...

Local butcher is charged on debits but higher the throughput 'lower the cost', Baker charges 35p on debit card transactions under £5 which is clearly shown on the counter, they just need to change the poster to put to cover bank charges as is mentioned earlier in thread about the local shop.

Banks and card providers are skimming on many if not all transactions, where do you think your %cashback cards get the money from it certainly isn't the banks paying it out of the goodness of their hearts ?

I'm in retail , my current card charges nett down to well under 1% , I've just checked the last statement and it's actually .6%

I charge nothing extra for any card payments , I certainly wouldn't want to be upsetting my customers for the sake of a few bob , I want customers to keep on returning and absorbing a .6% nett charge is a very small price to pay.