Dealers not taking credit cards
Discussion
I just received 2 credit cards which are 0% interest for 21 months. This gives me a total of £12,500 in an interest free loan which I plan to pay off in full at the end of the terms.
Better sitting in my bank account earning 5% for 20 months right?
Went to see a car today. Most they would let me put on a card is maybe £1000.
Rang another dealer and they were the same.
I was a bit surprised by this. It's up to them I guess given they get hit by a credit card fee. But I was just wondering if this was the same experience others had?
It wasn't an independent dealer, it was a franchise dealer.
Has anyone ever used a couple of credit cards to buy a car?
Better sitting in my bank account earning 5% for 20 months right?
Went to see a car today. Most they would let me put on a card is maybe £1000.
Rang another dealer and they were the same.
I was a bit surprised by this. It's up to them I guess given they get hit by a credit card fee. But I was just wondering if this was the same experience others had?
It wasn't an independent dealer, it was a franchise dealer.
Has anyone ever used a couple of credit cards to buy a car?
bingobangobongo said:
I just received 2 credit cards which are 0% interest for 21 months. This gives me a total of £12,500 in an interest free loan which I plan to pay off in full at the end of the terms.
Better sitting in my bank account earning 5% for 20 months right?
Can't comment on using credit cards at car dealers but read the small print, I bet the 0% doesn't include cash withdrawals. It is unlikely you'll be able to withdraw £12,500 and stick it in a savings account.Better sitting in my bank account earning 5% for 20 months right?
Where are you finding a savings account that gives 5% that isn't annual interest or linked to having an existing current account?
Yep, had this a couple of times when paying deposits - quite a low limit on what you can pay with a credit card.
Will the credit cards let you do interest free money transfers, or are they just interest free purchases?
The other option might be to take out a finance deal with the dealer and settle the finance using your credit cards as soon as you are able. I'm guessing that there wouldn't be a limit on credit cards under those circumstances, although I haven't ever looked into it, so I don't know for sure!
Will the credit cards let you do interest free money transfers, or are they just interest free purchases?
The other option might be to take out a finance deal with the dealer and settle the finance using your credit cards as soon as you are able. I'm guessing that there wouldn't be a limit on credit cards under those circumstances, although I haven't ever looked into it, so I don't know for sure!
Why would it be a cash withdrawl? Surely paying with a credit card is paying for goods and services? I was hoping I could pay a £6k 'deposit' on one card then pay the balance on the other.
They're is no finance company involved this is buying a car from a franchised dealer.
My ulster bank loyalty saver is 5.2% AER
They're is no finance company involved this is buying a car from a franchised dealer.
My ulster bank loyalty saver is 5.2% AER
Frankthered said:
Yep, had this a couple of times when paying deposits - quite a low limit on what you can pay with a credit card.
Will the credit cards let you do interest free money transfers, or are they just interest free purchases?
The other option might be to take out a finance deal with the dealer and settle the finance using your credit cards as soon as you are able. I'm guessing that there wouldn't be a limit on credit cards under those circumstances, although I haven't ever looked into it, so I don't know for sure!
Think it's just for purchase only.Will the credit cards let you do interest free money transfers, or are they just interest free purchases?
The other option might be to take out a finance deal with the dealer and settle the finance using your credit cards as soon as you are able. I'm guessing that there wouldn't be a limit on credit cards under those circumstances, although I haven't ever looked into it, so I don't know for sure!
I had the idea about taking finance and paying off on day 0, but some folks saying credit card company may see paying off finance as a cash withdrawl or cash advance?
bingobangobongo said:
Think it's just for purchase only.
I had the idea about taking finance and paying off on day 0, but some folks saying credit card company may see paying off finance as a cash withdrawl or cash advance?
I suspect you will not find any lender who will let you pay more than £1000 of any finance deal off using a credit card. Presumably this is to prevent what it is you are trying to achieve (circumvent interest payments to the financial lenders).I had the idea about taking finance and paying off on day 0, but some folks saying credit card company may see paying off finance as a cash withdrawl or cash advance?
You don't have an interest free loan of £12,500, you have two credit cards that will allow purchases up to £12,500 over 21 months. They may seem outwardly the same thing but in terms of finance and financial agreements they are not. You're not the first to think of this idea and you won't be the last to find out it doesn't work like that.
RedWhiteMonkey said:
I suspect you will not find any lender who will let you pay more than £1000 of any finance deal off using a credit card. Presumably this is to prevent what it is you are trying to achieve (circumvent interest payments to the financial lenders).
You don't have an interest free loan of £12,500, you have two credit cards that will allow purchases up to £12,500 over 21 months. They may seem outwardly the same thing but in terms of finance and financial agreements they are not. You're not the first to think of this idea and you won't be the last to find out it doesn't work like that.
I thought buying a car on a credit card is no different to buying a TV on a credit card. Your paying for goods or services. I'm pretty sure I could walk into Currys and buy a £10k TV on a credit card, or a holiday for that matter.You don't have an interest free loan of £12,500, you have two credit cards that will allow purchases up to £12,500 over 21 months. They may seem outwardly the same thing but in terms of finance and financial agreements they are not. You're not the first to think of this idea and you won't be the last to find out it doesn't work like that.
I know its not a free load, but its free credit and allows me to accrue interest on my savings over the 0% term of the card. Keeping that money in my bank account would earn near £1000 in interest over 20 months roughly.
This was discussed to death not that long ago...........
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
davek_964 said:
This was discussed to death not that long ago...........
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Looks like thats about debit card payments which is even strangerhttps://www.pistonheads.com/gassing/topic.asp?h=0&...
RedWhiteMonkey said:
Well, you thought wrong. If what you want to do was possible do you not think that everyone would be doing it? Is everyone doing it? There's your answer.
Well to be fair not everyone would think of it or do it for various reasons. But I did look into it too and it was suggested on many sites like moneysavingexpert, carwow and autotrader that it is possiblehttps://www.carwow.co.uk/guides/buying/can-you-buy...
They do mention that not all dealers will accept it - but my original post is to see if anyone had success doing this? I get why some dealers won't and its up to them. If its a dead end then fine, but if some folks had success then it might be worth ringing a few dealers.
It is possible to find such a dealer in theory but I suspect you will be looking a long time.
More realistically you should be able to find one easily enough that will at least accept the deposit via credit card although you may struggle to get them to accept more than £1,000 this way.
More realistically you should be able to find one easily enough that will at least accept the deposit via credit card although you may struggle to get them to accept more than £1,000 this way.
Most dealers will not accept credit cards for anything more than the deposit. The fees are too high for them
Reference leaving the money in your savings account, have you looked at the cash withdrawal fees. Usually card companies charge one and also limit the cash withdrawal amount to only 50% of the credit limit.
Reference leaving the money in your savings account, have you looked at the cash withdrawal fees. Usually card companies charge one and also limit the cash withdrawal amount to only 50% of the credit limit.
If a dealer already has factilities to take cards for a deposit, the fee to take the whole sum should only be a couple of percent.
You could try offering him 2%, to split the benefit?
If he won't it suggests he's either got a very poor deal with his card service provider, or he thinks there is a significant risk he will get grief from the card co, which may imply a lack of faith in the cars he is selling.
You could try offering him 2%, to split the benefit?
If he won't it suggests he's either got a very poor deal with his card service provider, or he thinks there is a significant risk he will get grief from the card co, which may imply a lack of faith in the cars he is selling.
I was able to purchase a 2nd hand car a few years ago and the garage were willing to do it on a credit card as the purchase price was 'only' £5k...
The only other option is to try and negotiate a deal with them, as I appreciate they are paying a fee to the credit card company, why not offer to pay an extra 1% if you pay by CC to offset some/all of their fees, you would still have the money earning 5.2% interest....
Although much as I don't like paying the full price, let alone even more...
The only other option is to try and negotiate a deal with them, as I appreciate they are paying a fee to the credit card company, why not offer to pay an extra 1% if you pay by CC to offset some/all of their fees, you would still have the money earning 5.2% interest....
Although much as I don't like paying the full price, let alone even more...
OutInTheShed said:
If a dealer already has factilities to take cards for a deposit, the fee to take the whole sum should only be a couple of percent.
You could try offering him 2%, to split the benefit?
If he won't it suggests he's either got a very poor deal with his card service provider, or he thinks there is a significant risk he will get grief from the card co, which may imply a lack of faith in the cars he is selling.
This is an interesting idea, could offer to pay slightly more to cover some of his fees.You could try offering him 2%, to split the benefit?
If he won't it suggests he's either got a very poor deal with his card service provider, or he thinks there is a significant risk he will get grief from the card co, which may imply a lack of faith in the cars he is selling.
I rang another dealer, he didn't accept credit cards either other than £1000, he wasn't sure why but assumed it was the fees, so I guess he would need to speak to his boss about it.
Like the link posted in here, they wouldn't accept credit cards either - only bank transfers. Are the margins really that slim nowadays that we have to BT cash to pay for a car at a franchised dealer.
I think a dealer on here explained it.
If you say sell a car for £10k and your card company charges 1.5% then that's £150.
If you gross margin is £1,500 per car and you take off transport, prep/detail, mechanical repairs, wages, rent, utilities, insurance, commission etc etc and you are left with £500 net, are you going to want to give £150 to the card company when you could have a simple bank transfer?
If you say sell a car for £10k and your card company charges 1.5% then that's £150.
If you gross margin is £1,500 per car and you take off transport, prep/detail, mechanical repairs, wages, rent, utilities, insurance, commission etc etc and you are left with £500 net, are you going to want to give £150 to the card company when you could have a simple bank transfer?
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