topic Re: Charge Car on Charge Card? in Credit Cards

Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 13:26:57 GMT

Just wondering if anyone has experience buying a car with an Amex. I know most dealers only take a down payment with it but I have seen stories online of people flat out buying a car.

Re: Charge Car on Charge Card?

pizzadude — Fri, 30 Mar 2012 13:36:07 GMT

I've seen that many dealers have a maximum amount that they will allow for a credit card transaction, which is usually much less than the price of a new car, like $5,000, etc....

However IMO you could probably dictate the terms of the deal if you wanted to negotiate it ~ and it might really be worth it for the MR points.....

Re: Charge Car on Charge Card?

tcbofade — Fri, 30 Mar 2012 13:38:51 GMT

I've never done it, but my former mother in law used to buy inexpensive used cars that way...

She'd use one of those 0% checks provided by her credit card...buy a cheap used car...pay off the card before the 0% deal expired.

Re: Charge Car on Charge Card?

navigatethis12 — Fri, 30 Mar 2012 13:40:18 GMT

I personally have not but know people who have put it on a credit card. Merchants are not allowed to set a maximum purchase amount for credit card purchases. At least with Visa and Mastercard anyway. American Express sometimes leaves it up to the merchant. The dealer may not like it but they would rather pay 2-3% than lose the sale altogether.

Re: Charge Car on Charge Card?

daveg38 — Fri, 30 Mar 2012 13:44:41 GMT

Since many of the used car dealers around here (Indiana) have the Visa/MC/AMEX logo on their window, I'd assume they get that type of business frequently. If it runs over the amount of your credit limit, split between two points cards or have cash to make up the difference.

AMEX might have a coronary over a 10K charge, especially if you're a relatively new account holder.

Re: Charge Car on Charge Card?

LS2982 — Fri, 30 Mar 2012 13:53:56 GMT

You might want to consult with the fine folks at AMEX before you pull that black one out and buy a car on it........

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 13:58:33 GMT

@LS2982 wrote:
You might want to consult with the fine folks at AMEX before you pull that black one out and buy a car on it........

Thanks for the feedback everyone. This black card is, im sure, the only reason im allowed to test drive now. Several months ago I wasnt even allowed to test used 5K cars. Im looking into a new car but even a 5K deposit on the card helps with MR points. I love points

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 13:58:38 GMT

In b4 someone says the dreaded "FR".

I'd first call AMEX and let them know what I plan on doing and then ask the dealer.

I've "heard" of people doing this when they had the cash to pay it off and I've read it on financial blogs, but who knows if any of those people are telling the truth.

Re: Charge Car on Charge Card?

LS2982 — Fri, 30 Mar 2012 14:00:28 GMT

@FR +1

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 14:01:40 GMT

@Anonymous wrote:
In b4 someone says the dreaded "FR".

I'd first call AMEX and let them know what I plan on doing and then ask the dealer.
I've "heard" of people doing this when they had the cash to pay it off and I've read it on financial blogs, but who knows if any of those people are telling the truth.

I certainly let them know of the charge I intend to do the day before. I would rather use Amex over cash do to the points. If I can only do a deposit on Amex id still take that over fully cash. Im not to good with negotiations.

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 14:16:57 GMT

If it CAN be done, then I would definitely do it.

Paying cash for a car when you could use a charge card is missing out on a LOT of points.
Pretty much, missing out on free money.

Re: Charge Car on Charge Card?

LS2982 — Fri, 30 Mar 2012 14:31:20 GMT

@FR +1

If AMEX says yes dooooooeeeeeeeeett! lol

Re: Charge Car on Charge Card?

bostonte — Fri, 30 Mar 2012 14:39:07 GMT

@navigatethis12 wrote:
I personally have not but know people who have put it on a credit card. Merchants are not allowed to set a maximum purchase amount for credit card purchases. At least with Visa and Mastercard anyway. American Express sometimes leaves it up to the merchant. The dealer may not like it but they would rather pay 2-3% than lose the sale altogether.

So you own a car dealership and have seen the specific contracts they negotiated? Large franchised car dealers do not have the same contract as a mom and pop candy store. They are most commonly explicitly prohibited from charging over a certain amount for a car. The underwriting bank doesn't want the risk (either fraud and/or the protections and rights consumers have by law or card company policy). Nor does the dealer. They don't want a car going out without a lein and the having to play games with billing disputes and chargebacks. The dealer does not have the same protections letting a car go on a charge card that they do with a finance contract. Amex has a program to specifically allow it at several types of dealers. Tanner should have his father call Centurion service and they'll explain it to the account holder. Other than that, you should be able to get $2-5000 at most dealers.

Re: Charge Car on Charge Card?

LS2982 — Fri, 30 Mar 2012 14:42:46 GMT

@boston Good post!!

Re: Charge Car on Charge Card?

navigatethis12 — Fri, 30 Mar 2012 14:55:11 GMT

@bostonte wrote:
So you own a car dealership and have seen the specific contracts they negotiated? Large franchised car dealers do not have the same contract as a mom and pop candy store. They are most commonly explicitly prohibited from charging over a certain amount for a car. The underwriting bank doesn't want the risk (either fraud and/or the protections and rights consumers have by law or card company policy). Nor does the dealer. They don't want a car going out without a lein and the having to play games with billing disputes and chargebacks. The dealer does not have the same protections letting a car go on a charge card that they do with a finance contract. Amex has a program to specifically allow it at several types of dealers. Tanner should have his father call Centurion service and they'll explain it to the account holder. Other than that, you should be able to get $2-5000 at most dealers.

No I do not own a car dealership. I was there twice so know for sure that it was done on a Visa and a Mastercard. This was only about two years ago so maybe things have changed since then. I seriously doubt that a credit card company would complete a chargeback, no questions asked, on a huge purchase like that. The dealership gets the money whether the person pays the card off or not, just like if they finance through a bank.

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 15:07:41 GMT

@bostonte wrote:
@navigatethis12 wrote:
I personally have not but know people who have put it on a credit card. Merchants are not allowed to set a maximum purchase amount for credit card purchases. At least with Visa and Mastercard anyway. American Express sometimes leaves it up to the merchant. The dealer may not like it but they would rather pay 2-3% than lose the sale altogether.
So you own a car dealership and have seen the specific contracts they negotiated? Large franchised car dealers do not have the same contract as a mom and pop candy store. They are most commonly explicitly prohibited from charging over a certain amount for a car. The underwriting bank doesn't want the risk (either fraud and/or the protections and rights consumers have by law or card company policy). Nor does the dealer. They don't want a car going out without a lein and the having to play games with billing disputes and chargebacks. The dealer does not have the same protections letting a car go on a charge card that they do with a finance contract. Amex has a program to specifically allow it at several types of dealers. Tanner should have his father call Centurion service and they'll explain it to the account holder. Other than that, you should be able to get $2-5000 at most dealers..

Ill be going to the dealer to look and will ask them when I go. Im not concerned with Amex's spending ability, im concerned with the dealer accepting a card.

Re: Charge Car on Charge Card?

tcbofade — Fri, 30 Mar 2012 15:08:01 GMT

@Anonymous wrote:
Why would my decesed father call? Ill be going to the dealer to look and will ask them when I go. Not concerned with Amex's spending ability, im concerned with the dealer accepting a card.

I don't know why...or how...but if you figure it out, let me know. I've got a BUNCH of questions that I'd like to ask MY deceased father...

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 15:13:30 GMT

TannerK,

When you do this could you please ask if your bumper to bumper warranty will be extended by 1 year?

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 15:14:25 GMT

@Anonymous wrote:
TannerK,

When you do this could you please ask if your bumper to bumper warranty will be extended by 1 year?

Im confused? The warranty lasts longer than I intend on owning the car.

Re: Charge Car on Charge Card?

Anonymous — Fri, 30 Mar 2012 15:15:06 GMT

This thread took a very confusing and morbid turn, for some reason.