Buying New Car with Credit Card (to get reward points)

baaz on 02/03/2016 - 09:06
Last edited 02/03/2016 - 09:08

Hi

I am buying a new car worth 35K with a combination of Credit Card(15K) + Bank Loan(20K).
I have cash in savings to pay off the credit card as soon as I get the Credit Card Statement(just before the due date). I am awaiting a self cheque for the 20K from Citi Bank, Loan has been approved.

My question is, can I top up my Comm Bank Platinum Credit card with 20K cheque from Citi Bank, and use 35K to buy the car? Will there be any charges that you guys know of?

Is it worth the hassle to get the Frequent Flyer reward points?

I have got both Master and Amex.

Thanks for any suggestions.

Financial

Comments

  • mick123 on 02/03/2016 - 09:20
    +2

    Ask the dealership.
    From just my own experience, I find they will take the deposit (eg $1000) by credit card but not the balance, without a surcharge.

    • baaz on 02/03/2016 - 09:27

      Thanks for the reply.

      I haven't checked with the dealer yet, will do so.

  • bluedufflecoat on 02/03/2016 - 09:22

    would your car dealer be happy to accept credit card, without charging you a surcharge?

    • baaz on 02/03/2016 - 09:27

      I haven't checked with the dealer yet, will do so.

  • jdf on 02/03/2016 - 09:52
    +3

    If they do charge a surcharge, I would recommend doing some calculations to check if you do come out ahead in terms of points gained with the surcharge.

  • shaz0316 on 02/03/2016 - 10:18
    +7

    As a general rule- if the surcharge is >1.00% than the points you will make will not be worth the extra cost.

  • minty on 02/03/2016 - 12:45
    +3

    The missus purchased a car 6 months ago, we were able to pay a maximum of $5,000 on CC without surcharges, so we did that. But YMMV.

    • modsec802 on 02/03/2016 - 21:34

      Yes, I was able to do the same. Any additional they wanted like 3.5% which frankly isn't worth it for points

  • AndyRates on 02/03/2016 - 12:49
    +1

    I bought a car fully funded by credit card no dramas. No surcharge as well. It depends on the dealer and if you know the salesman.

    • modsec802 on 02/03/2016 - 21:35
      +2

      Perhaps you paid too much?

      • naritas on 03/03/2016 - 09:43
        +1

        @juicedpixels LOL - this comment made our team laugh because we've seen it hundreds of times before.
        In our experience, 'awesome' deals on 1%p.a. finance, must have GAP or credit/life insurance and all fees waived promos are nearly guaranteed to be accompanied to an inflated sales price.
        However, that's not to say Johnster is wrong. He may have got an absolutely sensational bargain. But the majority of people who are claiming they got the deal of the century have really just committed to an expert salesperson justifying their continued employment at the dealership and not the proverbial deal of the century ;)

      • AndyRates on 03/03/2016 - 10:47

        Na mate, they definitely made some profit otherwise there's no point for dealers to sell a car. I got it below normal driveaway price by a few thousand and I got a few extra accessories cause I knew the Sales Manager. I used the points as cash back that saved also a few hundred bucks off my paid price.

  • blackfrancis75 on 17/05/2018 - 14:17

    Old thread - but for reference the car yard I just bought from only allows the first $2000 to be paid without a surcharge - because above that they get charged themselves.

  • New Chump on 17/05/2018 - 18:15

    My elderly dad bought a car (that I have some doubts about) from a second hand dealer last month on his card. $7 or 8,000 or so.

    He called me right at the end of his negotiations wih the dealer for some help with his card, and I heard the dealer tell him there would be a credit card fee. I told him to walk. The dealer promptly said they would waive the fee for him. He needed a car so he bought it.

    Pretty sure he was ripped off or at least did not get a bargain, so I now think the rule is: the greater the lemon/the greater the profit on the sale, the more likely the credit card fee may be waived by the dealer to clinch the sale.

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