Card Churning When Buying Car?

Any thoughts about signing up to multiple cards with bonuses to purchase a car as an easy way to meet multiple minimal spend requirements?
I have cash to pay for it however I was thinking if I can make multiple transactions with either multiple cards to get their signup bonuses would there be any significant downside doing it this way instead?
My plan is to sign up to as many as I can, make the minimum spend on each, pay them off ASAP before interest free period is over.
So some things got me thinking:
1. How would my credit score be affected? Some say if you pay it off and didn’t default on any payments you should be ok. Others say too many applications in short time would be detrimental to credit score. Some even say if multiple applications short period of time the agencies won’t be able to realise there are other applications happening concurrently anyway?
2. Annual fees - need to make sure the $ spend justifies the points
3. Whether making multiple payments for a single transaction is actually feasible?
4. I haven’t done this before but can I essentially get maximum 1 VIsa, 1 Mastercard 1 AMEX since sign up bonuses tend to exclude existing customers or as long as its not the exact same card we can sign up to multiple cards? E.g. its ok to sign up to a bonus for an AMEX explorer card if I have an AMEX platinum edge currently
5. If doing this using other family members name is feasible, would signing up to multiple members for the same card be a better way to do it?

Comments

  • +6

    Likely need to account for credit card surcharge by dealer if you expect to put an entire cars $ on credit card.

    • I've never had a dealer charge a surcharge for putting a deposit on a car nor the time I bought a cheap runabout but yeah, buying a new car and splitting it across multiple cards is going to seem a bit suss to many and they'll almost certainly not allow it for that reason plus the multiple charges to them.

      • +2

        Yeah, most dealers don't mind getting your deposit of $1k or $2k on credit card; but if you ask to pay the whole amount; then surcharge comes into the picture as it is not a small amount for a $20-$40K purchase.

  • As above, credit card fee.

  • What sort of budget do you have in mind?

  • +3

    Yeah, nah

  • My Sydney Toyota dealer had a $3000 cap on credit card payments.

  • Most dealers won't let you pay for the whole thing on credit, let alone split it across multiple cards.

    Last time, I put a $2k deposit on credit. But the rest was bank transferred.

  • Good points, i wasn’t aware there would be any restrictions i.e. dealer not allowing the full or big portion of the purchase to be put on credit I’ll need to check on this. But the surcharge dilemma applies to all purchases anyway wouldn’t it?

  • I have tried a couple of times with the last two car purchases. Dealers are a wake up to this and will only allow you to pay approx 3k deposit without charging you a surcharge if pay the rest. You can do it but will need to pay dealers credit card cost ie up to 1% extra. In the old days I had purchased the full cost of a new car but dealers will no longer do this. Blame the ACCC introducing charging credit fee surcharges to customers (if you ask before negotiation then will be hidden in the price they offer). Forget it and just shop around for the best deal, as this loophole is no longer there.

  • Recently paid 8K deposit with a credit card at one of the Sydney VW dealers.

  • Bought a new car. Dealer had limit of $5k for using c/card

  • Looks like I can only churn one card doing a car purchase!

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