Which credit card to buy a car ?

StonedWizard on 15/12/2018 - 11:27

Looking to buy a car in the next few weeks between $20k - $25k. Have enough money to pay for it in full but thought about paying it on credit for points, then pay the bill in full when it's due.

I was thinking my gf and I could apply for a card each then put $10k on each card to reach minimum spend.

The goal is to maximise points to get 2 - 3 business class flights to USA next year (already got around 100k points).

I understand that there may be an annual fee + transaction fee. Hopefully there's a card with $0 annual fee.

Just wondering if anyone could suggest a card to get the best value out of this ?

Financial

Comments

  • kizashi on 15/12/2018 - 11:31
    +6

    Before you do, might be best to check with dealer first. I have tried/done this before and dealers hate it. Last time they only allowed me to put 10k on it rather than full price. So, before go to trouble, make sure it is possible (or whether dealer will mark up your agreed price to compensate him for extra charges and maybe not worth effort)

  • fishball on 15/12/2018 - 11:39
    -1

    Get an amex charge card, those don't have a credit limit you just have to pay it back when balance is due.

    Not sure which is the best though and better check if they accept amex before doing that.

    • Scrooge McDuck on 15/12/2018 - 14:58
      -3

      Get an amex charge card, those don't have a credit limit you just have to pay it back when balance is due.

      I know nothing about that card, but your assertion couldn't possibly be true!

        • Scrooge McDuck on 15/12/2018 - 15:12
          -1

          Charge Cards have no pre-set spending limit1, although that does not mean unlimited spending. Your purchases are approved based on a range of factors. As we get to know you, we’ll be able to adjust how much you can spend on your Card.

          That's just a limit by another name.

          • FirstWizard on 17/12/2018 - 10:20

            @Scrooge McDuck: Yep, it all depends on how long your relationship with AMEX has lasted, how good it is, and the particulars you've given at the time of opening the account.

            They have a spending checker tool in the online portal to put in a mock transaction amount to see if the system will approve it, just to save the embarrassment when actually at Point-of-Sale.

  • mbck on 15/12/2018 - 11:49

    some place don't actually allow you to pay with credit card. just a heads up

  • plmko on 15/12/2018 - 11:49
    +10

    Fees charged by dealers are higher than any benefit.

    • Fier2 on 15/12/2018 - 11:55

      Agree. My partner thought it would be a gret idea until we saw the surchage which was almost the price of the rego

    • Diji1 on 15/12/2018 - 20:49

      Fees charged by dealers

      They rather shaft you using their financing?

  • spackbace on 15/12/2018 - 12:14
    +1

    Yep, from a salesperson here, dealers will charge a 1-2% fee

    • rompastompa on 15/12/2018 - 12:30

      I had a similar question to Spackbace the other day.

      You're probably going to pay about the same++ in fees as the bonuses you get from CC points.

      Find out the fees and work out how many points/rewards you'll get. Then, you'll have your answer ;)

    • Iamnotcheap on 15/12/2018 - 13:19
      +2

      Yeah the dealership that I went through was ok with this as long as I covered charges for $5k or more if I was using a cc. I chose not to go above the 5k. Surcharge at the time 1.4% / didn’t make sense just for some extra points. Capped myself at the 5k with no surcharge.

      • Scrooge McDuck on 15/12/2018 - 15:01
        -4

        You probably had at least $5,000 more you could've negotiated away.

        • Iamnotcheap on 15/12/2018 - 15:45

          Not sure I get your comment?

          It was merely how to cut the payment - eft or credit card. Negation has already been done; so had no bearing on the price.

          • Scrooge McDuck on 15/12/2018 - 16:14
            -2

            @Iamnotcheap: I thought you meant $5,000 in charges for the dealer (ie credit card surcharge).

            I would've worded it this way:

            as long as I paid the surcharge if I put $5k or more on my credit card.

            In that case, you had at least $70 more to negotiate off.

            • Iamnotcheap on 15/12/2018 - 16:54

              @Scrooge McDuck: Oh right. Ok.

              The 1.4% would be on the total amount rather than the amount above. At say 10k, a $140 surcharge for 10k points is steep, opposed to 5k points for $0 surcharge.

  • 87percent on 15/12/2018 - 12:20
    +2

    When I bought my car in 2015, the dealer let me put $12k on card. Part of the negotiation was to include this

  • Donaldhump on 15/12/2018 - 12:20
    +1

    Sweet, good ide, if only the fees weren’t worth more than what reward you will get

  • kizashi on 15/12/2018 - 12:32
    -1

    All you guys are funny. Read my first post, and move on!

    • spackbace on 15/12/2018 - 12:34

      Nice car 😉

      • [Deactivated] on 15/12/2018 - 16:19

        AWD model?

        • kizashi on 15/12/2018 - 16:22

          Nope. But like it anyway. Has everything l want on it. Shame stopped selling. Just never marketed well at time.

          • [Deactivated] on 15/12/2018 - 16:24

            @kizashi: Always loved the styling cues. Pity it's gone. I think it would sell better today under a less dramatic name.

            • kizashi on 15/12/2018 - 16:27

              @[Deactivated]: Maybe, but seems everyone buying suv's or utes or small cars. Mid car class seems to be dropping market.

  • brentl on 15/12/2018 - 15:31

    Yep dealers usually try and avoid credit cards and EFT transfers
    They prefer cash deposit and the rest by bank cheque.

  • BuyoTheCat on 15/12/2018 - 17:05
    +1

    someone else's credit card

  • SydStrand on 15/12/2018 - 20:56

    Last time I bought a car, they only took the $1k deposit and another $1k on card.

  • GangGang on 15/12/2018 - 21:16

    It would be easier to just sign up to the credit cards that frequently go on ozbargain. Spend the required amount (usually $3,000 in 3 months) and recieve all the points, then cancel card. It's usually 50,000> points.

    Just like everyone else is saying. I don't think they would take the full amount on credit.

  • LFO on 16/12/2018 - 23:47

    As many have suggested: check with the dealership first.
    Some accept the first 10K (perhaps less) then they will charge a fee for anything above. In particular if using AMEX.

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