Buying private second-hand car using credit card

I am trying to work out how to buy a second-hand car (privately, ~$10k) and use my credit card in order to meet the minimum spend sign-up points bonus.

A car dealer would be an option but private is a much better deal so that's all I am considering.

I've looked at Paypal linked to the credit card but that would likely incur enough fees to make it a poor propositon; not too mention having to convince the seller to accept Paypal.

Otherwise I've been looking at Visa Prepaid Cards where I could withdraw the cash. AusPost had one that is now ending that allows withdrawl of cash but it's not clear what the maximum I could load on it was, how much they cost and therefore whether it was worthwhile. Not too mention the potential cash advance fee.


  • If I was selling a car, not a chance I would accept anything but cash or a bank transfer

    • My thoughts also. Which is why I dismissed that route.

      • Its like posting that you want to buy a phone but don't want to spend money and asking how you can keep both.

        Either go to a dealer or pay cash/transfer to private.

  • Regardless of how you do it, there's going to be fees. The credit card company isn't going to be giving you those bonus points without getting anything in return.

    • The credit card side of things is not an issue.

      • Isn't that the whole issue?

        You have to put the purchase through as "credit" to get the minimum spend bonus and there's a fee. If you do a cash advance, I don't think it counts towards the minimum spend bonus.

        • put the purchase through as "credit"

          And how's that going to work with some rando off Gumtree?

          I tried buying a motorcycle using a credit card years ago, yeah nah.

          • @D C:

            And how's that going to work with some rando off Gumtree?

            I did think about that and, even if OP could, it still has to go through as "credit" for the transaction to count towards the minimum spend. For eg, if OP did a deal with someone they found on Gumtree who was selling their car, that had a business (not related to cars) and swiped his card through their machine, there would still be a fee for the use of "credit".

            • +1 vote

              @bobbified: I was thinking more of the odds of finding someone selling a car who just happened to have a credit card terminal.

              The fees and other hassles (esp on the seller's part) are just a bonus.

              Should ask for cashback while you're at it.

              Imagine selling a car and hearing "Visa ok?"

              "WTF? FO"

  • if you do it at a car dealer you should expect a 1-2% cc surcharge and on 10K that's quite a fair bit to pay

    • Right. And you have to deal with them; no way I will be going that route.

      • I’d rather deal with a dealership than a private seller. Also, you can negotiate your price so the surcharge is factored into your price

      • Yeah pretty much zero chance a private seller is willing to do this, buy from a dealer or find something else to spend the money on.

        • Re-read post. You're entirely missing the point.

          • @mikeadwell: No I get what you are trying to do. You want to make the minimum spend on a CC to get the points. You are thinking of buying a used car privately or Visa gift cards.

            What I'm saying is there's no way a regular private citizen will sell you his/her car and accept credit card.

            Secondly you cannot withdraw cash from a prepaid Visa, and some banks treat buying gift cards on CC as a cash advance so it wouldn't even count towards the minimum spend most likely.

            There's been people who have set up Square accounts and charged themselves using the CC and deposited the cash back into their bank account, but this definitely triggers red flags and is a shortcut to getting your account suspended and possibly ATO notified.

            Question is what is the minimum spend and how come you can't meet it with everyday purchases?

  • Don't worry about figuring out how to pay with cc, you should be working on how to convince private seller to accept credit card. btw how beneficial is the sign up bonus after fees and monthly interest repayment?

  • If I was the seller, as soon as you mentioned or asked for me to accept C/C or paypal I would think SCAM. There is no way I would accept that.

    Anyone accepting C/C would risk a charge-back, accepting paypal without a delivery confirmation risks. Anything other than cash and bank cheques, or transfers and waiting for the money to clear) would raise BIG RED FLAGS.

    So I don't see how you can get that cash without going through large fees for cash advance.

  • I think the main thing is a private seller won't take on the risk of fraud/chargebacks, even if you pay the fee.

    Your minimum spend is probably well under $10k. I think you're better off with manufactured spend to hit whatever amount you're after (gift cards etc.) as opposed to trying to pay for the car using a CC.

  • Lol…

  • - pay yourself
    1.9% fee

    • I was about to post, I'll take his credit-card payment and pay for the car on his behalf. Paying himself would be a whole lot less risky.

  • I bought my car 2 years ago from a private seller using a credit card. as long as the transaction is done through CarSales then it works

  • whats the minimum spend out of curiosity

  • Use the credit card to buy $10k worth of iTunes cards (make sure to get them at 15~20% off).
    Pay for car using iTunes cards!

  • -1 vote

    Deposit into a bookmaker using the credit card, turn it over, withdraw to your bank account and then pay in cash.

    Just don’t lose the bet

    • There is an extra fee for transactions made on wagering websites.


        Just make sure the odds cover this fee :)

        Most bookmakers don’t charge a fee. Some credit cards will treat as a cash advance but not all of them.

  • Member Since
    3 hours 41 min ago

    Must be a prequisite for stupid posts.
    Don't bother, there are too many hoops to jump through.

  • What you're really asking is how to manufacture a $10k spend on your new credit card/s.

  • Easy Bill Pay.. gives you the option to direct deposit to your own account or the private sellers account.
    Like any methods already mentioned you will wear at least a couple of points in fees.

  • Of the top of my head, paying a vehicle (new or old) with a Credit Card is more costly than paying cash.

    Even AMEX giving lots of points will be a loss because of fees and charges from the dealership for any payment over $5K($10K?)

  • Over pay the cc. Rock up at the branch and collect cash?. I think I did this few years ago with Citi.Don't know if they still allow this.

  • I'm planning to buy second hand car but feel guilty buy cash, I'm thinking the same question. Any update? what did you?