Buying a car on a credit card

[T84]

Decided to try and get a 0% credit card and buy a lower value car (around the £3k mark), do most dealers take credit cards or do they try and urge you to pay cash to save on fees?

Thanks!

[sleep envy]

some do, some don't

In the past I bought an 18 month old m3 on a CC although the dealer had to phone the bank to confirm the transaction

[beanbag]

T84 said:

Decided to try and get a 0% credit card and buy a lower value car (around the £3k mark), do most dealers take credit cards or do they try and urge you to pay cash to save on fees?

Thanks!

I bought a £5k motorcycle from a dealer on a credit card. They didn't have a problem with it but it was a Harley dealership so quite well recognised.

You shouldn't have a problem I would imagine.

[homerjay]

ive done it a couple of times, and they tried to talk me out of it.

one bloke even said, just go and get the money from the cash machine on your card....idiot

they will make you pay the fee (2.5%), but haggle on that too. i manage to get them to split the difference.

[T84]

Might be worth it then, I've never had a CC before (Don't have any debts at all, phew!), so I'm not sure what limit I'm going to get... Applied for a couple and got declined, I think there was a black mark against my shared house address because my credit score is great, plus 'the credit crunch' must've made it a bit tougher so I'm going to try my bank now I've moved house...

Edited by T84 on Tuesday 5th October 14:13

[markmullen]

The trouble from a dealership POV is that they get nailed for the cc fee, often 2-4% which on a car is a big deal.

I've taken large amounts on CC before for people wanting to get cashback and air miles etc, as long as they pay the fee then no problem.

[V88Dicky]

I paid £18,450 for a car on my debit card, no problems. Just had to phone the bank before hand

[sleep envy]

markmullen said:

as long as they pay the fee then no problem.

does this only happen with car dealers?

never have had this happen to be when making other high value purchases

[TheRoadWarrior]

V88Dicky said:

I paid £18,450 for a car on my debit card, no problems. Just had to phone the bank before hand

Bit different with a debit card though, no fees associated with them unlike CCs.

[markmullen]

sleep envy said:

markmullen said:

as long as they pay the fee then no problem.

does this only happen with car dealers?

never have had this happen to be when making other high value purchases

The majority of other high value purchases (boats, helicopters, houses etc) don't work on such tight margins, eg 8% in a new Merc before discount, PX overallowance etc, to lose perhaps half of that in CC fees makes it unpopular.

[V88Dicky]

TheRoadWarrior said:

V88Dicky said:

I paid £18,450 for a car on my debit card, no problems. Just had to phone the bank before hand

Bit different with a debit card though, no fees associated with them unlike CCs.

I guess so. Still seemed a bit wierd on the day though, waiting for the go/no go from that little machine!

[homerjay]

T84 said:

Might be worth it then, I've never had a CC before (Don't have any debts at all, phew!), so I'm not sure what limit I'm going to get... Applied for a couple and got declined, I think there was a black mark against my shared house address because my credit score is great, plus 'the credit crunch' must've made it a bit tougher so I'm going to try my bank now I've moved house...

Edited by T84 on Tuesday 5th October 14:13

if youve been declined twice, you need to stop applying imo.

and get a 30 day free trial at experian or expedia or both to check your credit rating.

[T84]

It was about a year ago I got declined, checked credit file, nothing wrong, must've been the address or that lenders have tightened up on lending to people.

[sawman]

I bought an mx5 a few years ago on a CC, no problems. A pal of mine bought his brand new porsche 911 (well loaded with extras) on his debit card. no sweat, although I think a call was made, which he has predicted and so bank manager was ready for it.

[LeighW]

I bought my O/H's car with a credit card. The dealer agreed to go halves on the fee, which I was happy with. The only reason I did it was because my then new card had an introductory 4% cash back deal on it. Which was nice...

[markmullen]

Debit cards are usually a flat fee for the vendor, usually 50p or so, regardless of value whereas credit cards are a percentage and Amex an even higher percentage.

If you imagine me selling a Carrera GT at £300,000 the credit card charges would be in the region of £12k compared to zero if they paid by bank transfer or 50p for a debit card.

[130R]

Transfer the money from the credit card into your bank account and pay with a debit card to avoid the fees?

[k-ink]

Also using a Debit card means you have the funds, while using a Credit Card means your daft as a brush.


I await the usual wave of PH nonsense... "A credit card is fine as I have my cash tied up in Switzerland and I pay it off monthly"

[MonkeyBusiness]

130R said:

Transfer the money from the credit card into your bank account and pay with a debit card to avoid the fees?

You'll be charged heavily for the privilege by the bank as its just like taking money out of the hole in the wall with your CC.

Edited by MonkeyBusiness on Tuesday 5th October 16:58

[blueg33]

k-ink said:

Also using a Debit card means you have the funds, while using a Credit Card means your daft as a brush.


I await the usual wave of PH nonsense... "A credit card is fine as I have my cash tied up in Switzerland and I pay it off monthly"

My funds are in the Cayman Islands But I do pay off the credit card monthly and I get Tesco points for using it. So all is well. Bought my wife's Outback on credit card and then paid it off.