Buying a car with a credit card

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lazydavid
Posts: 1028
Joined: Wed Apr 06, 2016 1:37 pm

Buying a car with a credit card

Post by lazydavid » Tue Sep 12, 2017 7:27 am

Saw this article posted on Moneywatch this morning:

http://www.marketwatch.com/story/this-m ... 2017-09-11
When Chris Mixter, a 39-year-old IT consultant living in Virginia, was ready to buy a car, he decided to try to get a free vacation out of it, too.
So much wrong I don't even know where to start:
  • He had to call around to find a dealer that would accept payment via CC, who only did so because he paid full sticker
  • Did not have money to pay off the bill
  • Thought that someone other than the dealer would give him a 0% loan post-purchase. What their motivation would be, I can't imagine
  • Opened 3 more CCs with 0% introductory rates and did balance transfers (likely incurring 3% charges)
  • (I'm guessing) won't be able to pay those off in time either
  • All this to get $675 worth of airline miles
Aside from the added aggravation, how much do you suppose those miles cost? I'm guessing somewhere around $2500, assuming he can pay off the balance transfers by next fall. If not, then quite a bit more.

A gem from the comments section:
This guy is broke, he just doesn't know it.

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midareff
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Location: Biscayne Bay, South Florida

Re: Buying a car with a credit card

Post by midareff » Tue Sep 12, 2017 7:42 am

Last car I bought I placed a very large order deposit with a credit card. A 2% cash back card that auto-paid in full. I just wanted to squeeze a few hundred more out of the deal and knew they would not turn that down for an order car..

Jack FFR1846
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Re: Buying a car with a credit card

Post by Jack FFR1846 » Tue Sep 12, 2017 7:47 am

First, do your homework and negotiate on price. Once done, ask the simple question "How much can I put on a credit card without a fee?". This will almost always generate a walk to the business manager's office by the sales guy. He'll return and tell you. Put that much down. The end.

I've done this at least 10 times and amounts have varied from $500 to $5000. This is nothing new for dealers and they have most times come back and said that I can put down $xxxx with no fee and that I can pay the rest for x% fee. Not rocket science. Not new. Been doing it for at least 25 years myself.....including using a GM card to buy a Subaru and a Subaru car to buy a Chevy (because both cards dis-allowed buying the car branded on the card for points).
Bogle: Smart Beta is stupid

nickjoy
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Joined: Tue Jun 06, 2017 9:44 am

Re: Buying a car with a credit card

Post by nickjoy » Tue Sep 12, 2017 8:02 am

I had help buying my first car (college graduation gift, and high school graduation gift, and others, let's not get into the philosophy of buying kids cars here though) and my father put 8K down on his credit card. I also put 6K I think down on it. Since the car was 20K total, the salesman said he had to talk to his manager and didn't normally allow big CC amounts, but would let me do it with no fee since the car only cost that much and I was putting a good amount down. My father did not mind the extra cash on his card, even though he only got 1% back. He paid it off in full the next month though.

(Side note, if you ever buy a car with all cash, all of the salesmen will come out and watch the two or three people count out all the money. It's pretty funny. I don't mean to derail the thread though.)

deltaneutral83
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Re: Buying a car with a credit card

Post by deltaneutral83 » Tue Sep 12, 2017 8:17 am

This guy is actually paying for the vacation of the rest of us because he A) paid MSRP for the car and B) is likely to wind up paying credit card interest. He could have just asked for $1500 off MSRP and saved himself 9 hours of trouble. I've always wondered when the credit card hacks are coming to a close but with people like this on the loose, the gravy train will go on for a while.

fantasytensai
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Re: Buying a car with a credit card

Post by fantasytensai » Tue Sep 12, 2017 8:46 am

Aside from the general issues....45k for a Honda Odyssey?

lazydavid
Posts: 1028
Joined: Wed Apr 06, 2016 1:37 pm

Re: Buying a car with a credit card

Post by lazydavid » Tue Sep 12, 2017 9:00 am

fantasytensai wrote:
Tue Sep 12, 2017 8:46 am
Aside from the general issues....45k for a Honda Odyssey?
Base price for the Touring is $45,450 including destination but no additional options. Elite starts at $47,610. These top two trim levels would not seem out of place with an Acura or Lexus badge on the front, though they would cost quite a bit more if they did.

Even the mid-level EX-L (lowest trim that includes Leather seats, power tailgate and power ports in the back row) costs over $40k if you add Navigation.

runner3081
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Re: Buying a car with a credit card

Post by runner3081 » Tue Sep 12, 2017 5:09 pm

Jack FFR1846 wrote:
Tue Sep 12, 2017 7:47 am
First, do your homework and negotiate on price. Once done, ask the simple question "How much can I put on a credit card without a fee?". This will almost always generate a walk to the business manager's office by the sales guy. He'll return and tell you. Put that much down. The end.

I've done this at least 10 times and amounts have varied from $500 to $5000. This is nothing new for dealers and they have most times come back and said that I can put down $xxxx with no fee and that I can pay the rest for x% fee. Not rocket science. Not new. Been doing it for at least 25 years myself.....including using a GM card to buy a Subaru and a Subaru car to buy a Chevy (because both cards dis-allowed buying the car branded on the card for points).
+1 this is what we have done.

Have been able to get up to $4.5k on a card one time.

Suman
Posts: 68
Joined: Sun Jan 01, 2017 1:59 pm

Re: Buying a car with a credit card

Post by Suman » Tue Sep 12, 2017 6:54 pm

We paid $5k by my 2% cash back credit card for the last car we bought. Of course we paid the balance right away.

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