Points strategy on a car purchase

[Big John]

I’m surprised that these dealerships have such a high floor limit. At my last changeover, the dealer only allowed me to pay $1K on my credit card (as a deposit).

 

[neils2004]

I’m surprised that these dealerships have such a high floor limit. At my last changeover, the dealer only allowed me to pay $1K on my credit card (as a deposit).

Similar here Big John.
Two new vehicles - different, unrelated dealers and on each deal $3000 limit on CC amount for payment.

 

[Gremlin]

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

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

If the card is fraudulent, neither of these things prevent a loss to the dealer.

 

[DC3]

If the card is fraudulent, neither of these things prevent a loss to the dealer.

There’s nothing stopping the dealer from asking the buyer to collect the vehicle once funds have cleared

 

[Pushka]

Credit cards, well, a few years ago, withhold a certain percentage of the sale back from the merchant in case of credit card claims.

 

[Flashback]

There’s nothing stopping the dealer from asking the buyer to collect the vehicle once funds have cleared

In the UK, they absolutely won't release the car until all funds have cleared. I had to negotiate hard to get £5,000 card payment accepted. They weren't going to budge from £1k and that's common here (Audi, FYR).

 

[JohnM]

For my second last car, where I put about $48K on Amex back in 2020, there was a transaction limit of what must have been about $25K, as I can recall having to do two transactions.

They were done one after the other, so I was bemused about why there was a limit.

I drove it away shortly afterwards, so the dealer was happy that they had received the funds.

 

[cjd600]

Paid $7k deposit on new vehicle, as 2 x $3500 last month (dealer had $5k limit), no fees.

 

[ThePW]

I know this won't help your case, but back in June I was with some family members who bought a Mazda. Used Amex Platinum Charge so no pre-set limit (and using the online calculator, they were pre-approved for the vehicle amount). Only 0.9% fee for Amex so it was about $360 for 88,000 Amex MR points. No dealer limit on how much to charge to CC.

Then on the day of pickup, they didn't even bother to enter the fee so they got all the points fee-free. This was in WA.

 

[Ansett Nostalgic]

I know this won't help your case, but back in June I was with some family members who bought a Mazda. Used Amex Platinum Charge so no pre-set limit (and using the online calculator, they were pre-approved for the vehicle amount). Only 0.9% fee for Amex so it was about $360 for 88,000 Amex MR points. No dealer limit on how much to charge to CC.

Then on the day of pickup, they didn't even bother to enter the fee so they got all the points fee-free. This was in WA.

Sounds like a great dealer!

 

[flyingfan]

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.

Nice you were able to negotiate strongly for your outcome. Hopefully the pendulum is swinging from car dealers back towards buyers now.

 

[TheRealTMA]

Credit cards, well, a few years ago, withhold a certain percentage of the sale back from the merchant in case of credit card claims.

These days they don’t hold funds back but the seller is liable for full chargeback etc within 6 months by CC company with no recourse.

 

[Pushka]

These days they don’t hold funds back but the seller is liable for full chargeback etc within 6 months by CC company with no recourse.

So no wonder there's still reticence.

 

[DC3]

These days they don’t hold funds back but the seller is liable for full chargeback etc within 6 months by CC company with no recourse.

Insurance coverage?

 

[samh004]

I bought two Suzuki Vitara's back in about 2017/2018 new on my Amex Plat Charge. I called Amex first and they suggested at the time if I paid off the first one before placing the second, there'd be no issue, ended up being about $60k all up. The dealership looked at me incredulously and couldn't understand why I'd want to pay about 1.8% on the transaction, but in the same breath suggested I finance the car instead on much higher rates. Often, they're either stupid or smartly trying to pad their pockets. Hard to tell.

Latest car is on a novated lease, so no such luck, but then again, I'm coming out about $500 better off in my pay each month.

 

[Gremlin]

Insurance coverage?

Well yes. But the second hand car market is a known fraud target. The insurer is likely to want to have the dealer with skin in the game and will most likely cap any claim. Based on what went down with the OP, I'm guessing they would have coverage up to $3k.

 

[Tiki]

These days they don’t hold funds back but the seller is liable for full chargeback etc within 6 months by CC company with no recourse.

By that logic, anything could be charged back more than $3000. Cruises, biz class tickets, diamond rings, furniture, renovations. But credit cards are widely accepted for high level purchases. So I don't get the car dealer thing especially if the customer is able to prove who they are and have a sizeable cash outlay as well. Why would I give them $10k cash and then rip them off for $5000 on a credit card? Car regos are easy enough to trace, not like I can run off with it.

 

[DC3]

… Why would I give them $10k cash and then rip them off for $5000 on a credit card? Car regos are easy enough to trace, not like I can run off with it.

I wouldn’t worry too much about the negativity that’s crept in here. Some car dealers are just duds, while others have a brain.

 

[TheRealTMA]

By that logic, anything could be charged back more than $3000. Cruises, biz class tickets, diamond rings, furniture, renovations. But credit cards are widely accepted for high level purchases. So I don't get the car dealer thing especially if the customer is able to prove who they are and have a sizeable cash outlay as well. Why would I give them $10k cash and then rip them off for $5000 on a credit card? Car regos are easy enough to trace, not like I can run off with it.

Oh I'm not sayng that. The dealer should be prepared to accept the CC with a small fee. Just saying that chargebacks can be up to 6 months after the sale and the merchant has little recourse so one can understand how some maybe cautious if it is not a regular practice like a travel agent etc.

 

[Gremlin]

By that logic, anything could be charged back more than $3000. Cruises, biz class tickets, diamond rings, furniture, renovations. But credit cards are widely accepted for high level purchases. So I don't get the car dealer thing especially if the customer is able to prove who they are and have a sizeable cash outlay as well. Why would I give them $10k cash and then rip them off for $5000 on a credit card? Car regos are easy enough to trace, not like I can run off with it.

Whilst true, mixed payments including a credit card contribution from non-Australian jurisdiction, well above their risk threshold, in an industry highly exposed to both fraud and money laundering, and you take what you get.

In comparison no one will bat an eyelid if you book two F tickets to LHR on your card.

But you do you. It's probably just negativity that's crept in here. No other possible explanation.