Points strategy on a car purchase

[4lex]

I'm planning to buy a car for ~120. I've got an amex discovery with a high limit that pays 0.75qf points uncapped, but the dealerships are playing hard to get on waiving their card fees for amex, though they will for visa/master. My ANZ black only pays up to 7.5k per statement period, then halves to 20k and then zero. I also have a BW qf transaction account, but I can't remember how that works - anyone know? Any other strategies to consider? Many thanks

 

[Captain Halliday]

Buy a car for ~30 and have ~90 to spend on travel?

 

[JohnM]

I've paid for four cars using CCs over the last quite a few years, three within the last five. Last one was just under two years ago.

Two were inexpensive straight-up student-type cars, the others were the changeover cost after trade-in for my previous and current fourbies. All transactions were in the range $20-40K.

I managed to get Amex fee matched to Visa on one changeover, and IIRC zero fee on one straight-up, but generally dealers are a bit unyielding - and it has been a sellers' market in recent times, especially for my last two 4WDs. Have to suck it up.

Generally, on face value it was potentially a bit marginal for value. However, because I invariably book QF FF Rewards at T-353d it has worked well for me, especially when averaged over all points earn sources.

It's happy days flying EK F & J and QR J on QF FF points...

YMMV.

Post automatically merged: Jul 30, 2024

Buy a car for ~30 and have ~90 to spend on travel?

Maybe the OP can cough up $120K on both...

 

[4lex]

Thanks. Really the point about the question was not to buy a different car, but to understand the best way to harvest points from a large transaction.

I found out that the bankwest FF account does indeed yield points on transactions. exactly 3. No, not per dollar.

@JohnM - did you find a visa or mc that would yield points on all of your 40k transaction? I too did the canning stock route in 17. I went south at Easter in a convoy of 2, first down after the wet. My 80 made it from Bililuna to Wiluna on one fill (280)

 

[JohnM]

Thanks. Really the point about the question was not to buy a different car, but to understand the best way to harvest points from a large transaction.

@JohnM - did you find a visa or mc that would yield points on all of your 40k transaction? I too did the canning stock route in 18 (iirc). I went south at Easter in a convoy of 2, first down after the wet. My 80 made it from Bililuna to Wiluna on one fill (280)

I can't recall all of what I did, but for my second-last changeover, I used Amex solely after negotiating a Visa-level surcharge based on (surprising) information another dealer gave me. On the same changeover price, I then threatened to go back to that dealer on the basis of lower CC surcharge.

On the most recent changeover, I really had no leverage owing to vehicle supply issues and waiting lists. For that I used Visa up to the $10K limit where it dropped to 0.5 points/$ and Amex at a hefty premium for the balance. That bit was marginal, but I justified it on averaging - and helping to maintain PC+.

That's an impressive run on the CSR without refueling at Kunawarratji - but was it 280L in onboard tanks?

Ah - so the 80 is going and a 300 is coming in?

On my tagalong we had a bloke in an 80 with a 6.5L Brunswick conversion. 'Rocket Man' we called him...

 

[4lex]

Yes, onboard tanks. Huge rear tank in the space where the spare goes. I did have a jerry too but didn't need it.

You're half right... Getting a 300, but don't think I can let the 80 go

 

[Tiki]

I tried to buy a 2nd hand car using some cash and I needed to put $5000 on a Visa to get a SUB (US card). The dealer wouldn't accept more than $3000 on the card, even if I was willing to pay the fee. He let a customer walk away. I even got the manager involved and no dice.

 

[Ansett Nostalgic]

I tried to buy a 2nd hand car using some cash and I needed to put $5000 on a Visa to get a SUB (US card). The dealer wouldn't accept more than $3000 on the card, even if I was willing to pay the fee. He let a customer walk away. I even got the manager involved and no dice.

What a foolish dealer.

Times like this it makes you wish you had a high-earning Visa or MC from overseas...!

 

[Tiki]

What a foolish dealer.

Times like this it makes you wish you had a high-earning Visa or MC from overseas...!

I do have a high earning Visa from Chase USA, that's why I want to use the credit card! Trying to make a SUB.

 

[JohnM]

I do have a high earning Visa from Chase USA, that's why I want to use the credit card! Trying to make a SUB.

For the ignorant like me, what is a SUB?

 

[DC3]

For the ignorant like me, what is a SUB?

Try sign up bonus

 

[Gremlin]

What a foolish dealer.

Times like this it makes you wish you had a high-earning Visa or MC from overseas...!

Hardly foolish at all. Whilst Tiki's intention may have been legit, there's a lot of red flags in that request when it comes to potential fraud. I wouldn't allow that transaction either.

 

[Tiki]

Hardly foolish at all. Whilst Tiki's intention may have been legit, there's a lot of red flags in that request when it comes to potential fraud. I wouldn't allow that transaction either.

I was ready to show them both a US and Australian passport, QLD drivers license, original credit card (not just ApplePay) and about 10k would have been a bank cheque from NAB. What red flags are there? The particular credit card has an introductory offer of 0% interest first year, the car was cheap enough for the balance to be covered on the card, and I would pay it off way before the 0% deal expired. I think they had a 1% surcharge for credit cards and the card has a 3% forex fee which is still way less than a typical car loan. The SUB is 75k Chase Ultimate Rewards transferable to various airlines and hotels.

 

[jamesatfish]

I have bought a few cars on credit card, the most recent one a couple of months ago was about $60K. Used a Qantas Business Amex, negotiated a price we were happy with first and then told them we'd either pay by credit card at that price and take the car there and then or we'd go shop around at other dealerships and may or may not be back.

Probably helped that it was the end of June and was a new car in stock rather than something with an order book and wait list, but we didn't pay a surcharge.

In the $20-30K range card payment seems pretty common and we've never had to worry about covering the card fee. The only dealership that stuck to their guns was Mercedes on a $180K purchase, we ended up paying 1% so $1,800 for 225,000 Qantas points which covered most of a OneWorld RTW Business redemption (it was in January so we hadn't hit the 500K point earn rate reduction as yet).

 

[Gremlin]

I was ready to show them both a US and Australian passport, QLD drivers license, original credit card (not just ApplePay) and about 10k would have been a bank cheque from NAB. What red flags are there?

1. Unusual combination of payment methods for a second hand car. On its own, not a deal breaker but...
2. Foreign card, meaning if transaction disputed (as is regularly the case in fraud events), then seller has to deal with foreign jurisdiction for dispute.
3. Mix of payments through Australian and foreign sources, increases likelihood that seller is dealing with someone who is money laundering, a significant issue in the second hand car market.
4. Unwillingness by the buyer to cap the seller's exposure to $3,000, as above.
5. Buyer prepared to walk out over payment issue. New cars are fungible - if I want a new Mazda CX5 I can get it effectively from any dealership. Second hand cars are not fungible, since they've all got different histories. You can't buy the same car from the next dealership. If you wanted THAT car, you were unlikely to have walked over such a minor payment issue.

The particular credit card has an introductory offer of 0% interest first year, the car was cheap enough for the balance to be covered on the card, and I would pay it off way before the 0% deal expired. I think they had a 1% surcharge for credit cards and the card has a 3% forex fee which is still way less than a typical car loan. The SUB is 75k Chase Ultimate Rewards transferable to various airlines and hotels.

Not relevant to the seller at all.

 

[DC3]

I tried to buy a 2nd hand car using some cash and I needed to put $5000 on a Visa to get a SUB (US card). The dealer wouldn't accept more than $3000 on the card, even if I was willing to pay the fee. He let a customer walk away. I even got the manager involved and no dice.

You did the smart thing. That dealer sounds like a jerk, missing a sale for no financial loss on his part.

 

[equus]

That dealer sounds like a jerk, missing a sale for no financial loss on his part.

Disagree, That dealer sounds like they understand risk and are managing it appropriately,

Selling something like a car you want to be sure of payment. Cash or bank cheque (provided not stolen) are guaranteed payment methods. Direct transfer into a bank account fairly safe as well. Credit card or personal cheque - I am afraid not. Cheques may bounce, but the credit card may be stolen or fraudulent - and subject to the funds being clawed back by a bank, and the dealer no longer having the car.

I agree with @Gremlin - the combination of elements present themselves to the dealer as being too much of a risk.

 

[Ansett Nostalgic]

Disagree, That dealer sounds like they understand risk and are managing it appropriately,

Selling something like a car you want to be sure of payment. Cash or bank cheque (provided not stolen) are guaranteed payment methods. Direct transfer into a bank account fairly safe as well. Credit card or personal cheque - I am afraid not. Cheques may bounce, but the credit card may be stolen or fraudulent - and subject to the funds being clawed back by a bank, and the dealer no longer having the car.

I agree with @Gremlin - the combination of elements present themselves to the dealer as being too much of a risk.

The credit card can be verified by checking the cardholder name against ID.

 

[DC3]

I see no risk from what Tiki has posted. There’s nothing stopping the dealer from asking the buyer to collect the vehicle once funds have cleared

 

[Tiki]

The dealer was really pushy too, not even willing to let me test drive it with him accompanying unless I was guaranteeing to buy it. I never asked to test drive it alone. I was hesitant because the car had over 100k km on it anyways although it was clean and looked in great condition. I know the general public isn't as point savvy as we are but surely there are enough people trying to get a bucket load of points from a large purchase?