Buying a car with credit card

[Anonymous]

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@Anonymous wrote:

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@ibmrad7 wrote:

I know someone who bought C300 on Amex Platinum and the only reason this was made possible was the fact that it was their 7th car from the same dealership (Not trying to say that buying 7 cars allows you to charge it on a credit card :-) )

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Don't new cars generally offer much higher margins for dealers than used cars? It might not have been possible to do that with a used car.

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Actually, it's the opposite. Used cars are far more profitable. That's one of the reasons that, even though I only buy used cars, I've never bought one from a dealer.

[Anonymous]

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@Anonymous wrote:

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@ibmrad7 wrote:

I know someone who bought C300 on Amex Platinum and the only reason this was made possible was the fact that it was their 7th car from the same dealership (Not trying to say that buying 7 cars allows you to charge it on a credit card :-) )

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Don't new cars generally offer much higher margins for dealers than used cars? It might not have been possible to do that with a used car.

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Official dealerships makes little to no profit on new cars (other than those "dealer options") that is completely unnecessary. They sell cars double the price how much they got traded in, and they charge ridiculous amount of fee for services. Also they are known to purposely break your car or charge you something insanely higher than needed. (i.e. 800 for timing belt/water pump is just ridiulous, and 400 for spark plugs, 100 for engine air filter or even 600 for brakes)

Most American companies make money by ripping people off.

[Anonymous]

What about amex would I be able to do a charge back if the car goes to crap, if the dealer won't take it back? If not then I'll look into extended warranties.

[Anonymous]

What about amex would I be able to do a charge back if the car goes to crap, if the dealer won't take it back? If not then I'll look into extended warranties. Dealer already agreed I could purchase it on a credit card

[Anonymous]

Good to know about the margins.

I had a pretty nasty $700 bill for the replacement of some accessory component of an emergency brake.

[ibmrad7]

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@Anonymous wrote:

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@Anonymous wrote:

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@ibmrad7 wrote:

I know someone who bought C300 on Amex Platinum and the only reason this was made possible was the fact that it was their 7th car from the same dealership (Not trying to say that buying 7 cars allows you to charge it on a credit card :-) )

---

Don't new cars generally offer much higher margins for dealers than used cars? It might not have been possible to do that with a used car.

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Actually, it's the opposite. Used cars are far more profitable. That's one of the reasons that, even though I only buy used cars, I've never bought one from a dealer.

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This!!!

It was a CPO, 1 year old model but still used.

[Credit_hawk]

I'm a car guy that buys brand new cars more often than I'd like to admit. This is because you almost always lose money. Always in cash at least. Anyway, it is quite true dealers make near nothing on new cars. Used cars is where the money is.

To your point of a CPO which I presume to mean certified pre-owned. You'll almost always get ripped off buying a used car that is less than 3 years old. This is because you almost always can get a brand new car cheaper. Anybody who buys new cars often and familiar with the game knows this. This is because you can normally get cars below dealer invoice if you know your stuff. And it's not rocket science. So say in my case I bought a 2015 car that was MSRP $40,510. The dealer invoice was $38,100 I paid $36,600. This doesn't include tax of course but you see very quickly how you can get a new car cheaper or the same cost of a 1 year old trade in or CPO. Brand and model demand varies with this but its quite common.

[Anonymous]

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@Anonymous wrote:

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@ibmrad7 wrote:

I know someone who bought C300 on Amex Platinum and the only reason this was made possible was the fact that it was their 7th car from the same dealership (Not trying to say that buying 7 cars allows you to charge it on a credit card :-) )

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Don't new cars generally offer much higher margins for dealers than used cars? It might not have been possible to do that with a used car.

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No way....

Think of it like this 'new' cars come from ONE source that TELL you what the supply is going to be and what the MSRP is going to be

AND the source controls the competitions excess to the EXACT same supply....

In the used car biz...they say you MAKE money when you BUY........because if you buy 'well' you're golden

You control the buy 'low' sell 'high' purse strings you could never do, in the new car biz

You buy WHAT you want when you want, you know what you can sell, and how quickly you can move it ( like an in tune EBay seller)

As a car makers retail outlet you may be stuck with a non selling 'mistake' that "they" made

And as mentioned if you buy 'well' you can make X amount of dollars but new car inventory cost is a lot mre set by again your ONE supply source

the car maker, hence a Honda dealer can't really 'shop' around for better pricing or get new Hondas elsewhere....he can't even sell 'new' Toyotas but he

could acquire 30 used ones at great prices and actually clear MORE money on the used Toyotas than he could the new Hondas...

Go figure ( in fairness the dealers do own mob-like protected areas as THE ONLY place to acquire 'new' cars of a certain brand....this is why once you're in you and your family are set.....

The racket....err business doesn't do the Subway or McDonald's thing and allow new dealership upon new dealership...so the new dealer is almost guaranteed to sell cars because they are the only retail outlets for those buying brand new cars....

For the OP...it really depends on the dealer many don't want to eat the fees over a certain amount and won't accept the purchase above a dollar amount, I've sen where they have you 'eat' the charge by writing a check or tacking on a fee etc...

Some businessess merchant accounts may go haywire and charge them higher due to unususal transaction amounts (= risk) I used to place CC machines and let's say the average transaction amount falls in the $50-$1000 range ( normally for repairs and trinkets in the service area) but a transaction of $30k came through it may indicate fraud, money landering or other B.S. and it could absolutely cause red flags towards WTH is a dealer doing...is he 'wishing' drug money, involved in a scam...either way it could deemed HIGH RISK from 'his' processor.....

And it could posibly be even WORSE.... if some B.S. like that actually came BACK as a chargeback? Wow it could eff up the dealer's merchant relationship...if a dealer has EVER had a problem in the past it may be why a specific place wouldn't risk running certain types of outlier-type transactions thru their merchant accounts...just some reasoning for a POV some dealerships may have of course YMMV