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Using credit card for new car down payment

Discussion in 'General Discussion | Credit Cards' started by Suzie, Aug 11, 2017.

  1. Suzie

    Suzie Level 2 Member

    In the new car market and while talking with a car dealer the topic of using cc came up. Completely out of the blue - I didn't ask how much I could put on a card - he said "don't let a dealer tell you you can only put xx on a credit card. If they limit the amount you can put on the card, they are violating their agreement with the credit card company."

    Does anybody know if this is indeed true? I was under the impression that most dealerships limit how much you can put on a card.

    We're cash buyers and not trading in, so a straight forward deal.

    Any dp's appreciated. Thanks!
  2. Stuck in KC

    Stuck in KC Level 2 Member

    I've bought two cars like this and neither would let me go higher than 3K. Gave me a song and dance about there not being proof of collateral with the credit card. I said you are doing a credit check already. Finally they said they would go higher but told me I had to pay a transaction fee (5/) if my memory is correct. I let them go with the 3K but told them I would never buy from them again.
  3. GetawaysRus

    GetawaysRus Level 2 Member

    Remember that it was a car dealer who told you this. These people are generally not real high on the truthfulness scale.

    I've purchased a few cars this way. Typically I have been allowed to put about 2500 on a credit card. If I try to go higher, the dealership usually starts crying that they will lose too much money on the credit card fees.
  4. Suzie

    Suzie Level 2 Member

    I was hoping to generate some points.

    I dislike this process so much. Looking at every make in the size we want. Who knew there were so many SUV's. Not me.

    Had a ray of hope for many points for my "trouble." ;)
  5. GetawaysRus

    GetawaysRus Level 2 Member

    Well, if you play the money order game (purchase VGCs with credit card and liquidate those VGCs for MOs), I would think you could use them to pay the dealer when you make your car selection. You could ask the dealer in advance if they would accept MOs for payment. This should be an easy way to get rid of quite a few money orders.
  6. Suzie

    Suzie Level 2 Member

    Excellent suggestion. I thought about that too. Was trying to bypass that extra step and go straight for the cc if I could. Once we agree on a price, it won't hurt to ask.
  7. italdesign

    italdesign Level 2 Member

    Don't feel bad. We just bought a house in another country. Paid cash as is customary there. Zero points earned for the biggest single transaction of our lives :mad:
  8. Mufmuf

    Mufmuf Level 2 Member

    I recently bought a used car at a dealership and was able to use $5000 on CC. Was told the limit is $3000 but since the girl whom I talked to over the phone did not know the limit, they let me pay $5000 i/o $3000. I used a debit card for the balance as I did not have a checkbook (based on the info from the girl who just started working , which I did not know).
  9. Suzie

    Suzie Level 2 Member

    Well that sounds way more fun than a new car! Congrats!
  10. esdot

    esdot New Member

    You can save the MO fees and drain quite a few debits, at least with mbfs.
  11. HariOm

    HariOm Transcendent Level

    Toyota dealer let us put $10k on a Visa when we bought a new car two years ago.
  12. bayguy

    bayguy Level 2 Member

    I bought a new car through Amex program and was allowed to put 5000 on an Amex card(it's in the program terms). This was a few years back though.
  13. Suzie

    Suzie Level 2 Member

    Thank you everyone for the dp's and suggestions.

    My results - $5,500 on credit card and $15k in MO's, remainder by check.

    I used cc for $500 deposit to hold car. I asked salesman how much I could do on credit card when I came in to do the paperwork and he said $5k. Spouse and I then maximized the Macerich fee free offer this week and then ran around to various WM's to get the $15k MO's.

    I didn't ask if they would take MO's. I just assumed. I had all the MO's filled out except for the Pay to the Order Of. I moved enough cash into my checking account in case they didn't take the MO's, and I could have deposited the MO's into checking if need be.

    No problem with the MO's. They did have to fill out a form, which they have to fill out even if I had brought in cash.

    In replaying the event in my mind, however, I realized the finance guy told me $5000 per transaction. Afterwards I wondered if I could have used 4 different cc's for $5k each. Maybe . . . or he meant per car.

    Anyway - I'm thrilled with my new car, the points, and the price I paid (with car buying tips to folks on here - thank you!) - and REALLY happy to have it over and done with!!
  14. FullMoonMadness

    FullMoonMadness Level 2 Member

    Suzie already did her transaction, but I'll chime in with an experience in case it helps someone else:

    My spouse was sitting down to pay the down payment on the car, and I asked how much we could put on a CC. The finance guy replied "they couldn't accept CC's." I asked, "How does your service department do it? They accept credit cards all day long?" Then he caved and let us put $2K on a CC. :D

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