Buying private second-hand car using credit card

Lmikeadwell on 26/05/2020 - 16:13

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.

Financial

Comments

  • 87percent on 26/05/2020 - 16:18
    +31

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

    • mikeadwell on 26/05/2020 - 16:29
      -1

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

      • Bryanalves on 26/05/2020 - 17:22

        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.

  • bobbified on 26/05/2020 - 16:20
    +3

    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.

    • mikeadwell on 26/05/2020 - 16:30
      -5

      The credit card side of things is not an issue.

      • bobbified on 26/05/2020 - 16:36
        +4

        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.

        • D C on 26/05/2020 - 16:46

          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.

          • bobbified on 26/05/2020 - 18:42

            @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".

            • D C on 26/05/2020 - 19:20
              +1

              @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"

              • bobbified on 26/05/2020 - 22:35

                @D C:

                "WTF? FO"

                😂😂 That's exactly what I'd be saying!

                "Buy this car like a f normal person!" LOL

  • jimbobaus on 26/05/2020 - 16:23
    +2

    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

    • mikeadwell on 26/05/2020 - 16:30

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

      • 87percent on 26/05/2020 - 16:48

        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

      • serideth on 26/05/2020 - 16:56
        +3

        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.

        • mikeadwell on 26/05/2020 - 17:27
          -7

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

          • serideth on 26/05/2020 - 19:20
            +3

            @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?

  • Tightpocket on 26/05/2020 - 16:31
    +1

    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?

    • chobani4lyf on 26/05/2020 - 16:33

      I believe OP will be paying the card off in full so there are no interest repayments required.

    • mikeadwell on 26/05/2020 - 16:34

      All that is accounted for.

  • dizzle on 26/05/2020 - 17:00

    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.

  • encryptededdy on 26/05/2020 - 17:00
    +1

    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.

  • spackbace on 26/05/2020 - 17:09
    +6

    Lol…

  • HansieSYD on 26/05/2020 - 17:31
    +2

    https://squareup.com/ - pay yourself
    1.9% fee

    • SlickMick on 27/05/2020 - 21:24

      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.

    • dizzle on 26/05/2020 - 17:56
      +1

      I believe they make it difficult to do that (with the pre paid cards) to deter money laundering and fraud (someone steals a C/c, purchases a debit card and gets cash out). So using that for large amounts may be difficult.

    • D C on 26/05/2020 - 17:57
      +5

      We understand, we're just here for the lolz.

    • 87percent on 26/05/2020 - 18:08

      For a new member, you’re not making a great first impression.

    • crentist on 26/05/2020 - 18:34

      From the sellers perspective, they will receive cash

      How about meeting your min spend at jb hifi and bartering with the seller for your goods?

    • Nutrino on 26/05/2020 - 18:49

      2c is cheap mate…

    • Seraphin7 on 26/05/2020 - 19:12

      Member Since
      3 hours 16 min ago

      Yep, "member since" checks out.

    • Agarwal on 26/05/2020 - 19:54
      -1

      So what is the actual question then? If you have the cash already then why not just go into a bank and withdraw it? Depending on the amount you might need to give notice or do it over a few days.

      If you are wanting to get the cash from your Credit Card, you could load it into one of those prepaid ones on the back of Qantas or Virgin Frequent Flyer cards. You can load from a Visa or Mastercard, but they will charge you a % and also your bank will treat it as a cash advance and you wont qualify for the points. But it could be done, and you could withdraw the money from ATMS but again there would be daily limits.

    • bobbified on 27/05/2020 - 15:03

      The inabiltiy of many to read the OP is painful.

      If you don't have a solution, why would you bother chipping in with your 2c.

      If you meet someone and they don't like you, they're probably the a* hole. But if you go somewhere and you don't like everyone, then you're probably the a* hole.

  • cantthinkofone on 26/05/2020 - 18:14
    +1

    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

    • mikeadwell on 26/05/2020 - 21:24
      -1

      Thank you. Pretty much the only comment of substance.

      • [Deactivated] on 27/05/2020 - 09:01
        +2

        Including yours

  • Donaldhump on 26/05/2020 - 18:48

    whats the minimum spend out of curiosity

  • pegaxs on 26/05/2020 - 18:58

    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!
    ????
    Profit!

    • 87percent on 26/05/2020 - 19:28
      +6

      That only works with the ATO

  • [Deactivated] on 26/05/2020 - 19:28
    -1

    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

    • BuyOrNot on 27/05/2020 - 14:03

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

      • [Deactivated] on 27/05/2020 - 16:48

        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.

  • Caped Baldy on 26/05/2020 - 19:37
    +5

    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.

  • JIMB0 on 26/05/2020 - 20:31

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

    • crentist on 26/05/2020 - 21:18
      -2

      no they're asking how to divert a $10k spend through their card. you think theres a problem with that?

    • mikeadwell on 26/05/2020 - 21:22
      -1

      Manufacture… it's a legit 10k purchase. Nothing manufactured.

  • randomusername2017 on 26/05/2020 - 23:10
    +2

    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.

  • LFO on 27/05/2020 - 16:51

    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?)

  • negger on 28/05/2020 - 21:37

    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.

    • dizzle on 29/05/2020 - 20:54

      That wouldn't count towards the minimum spend that he is after

  • kiwiic3 on 17/10/2020 - 18:18

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

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