@KLEXH25 wrote:My dealership had a $5k max for credit card transactions. I had to use my debit card at the time because I didn't have any limits that high.
For many dealers this does seem to be a common cap for new purchases. I always negotiate a price prior to settling payment to ensure that among other things, CC fees are not part of the negotiation. I was allowed to pay $5,000 of the down payment for the last 3 cars I bought at 3 different dealers.
I bought a $9000.00 1969 Camaro in My early 20's on Cash Advances
^ A picture will last a life time.
I once stayed in a Holiday Inn using my card.......Does that count? lol
Regarding dealerships capping card payment at $3000-$5000, besides the transaction fee eating into profits, many dealerships are worried about disputes. Buy a car entirely on a credit card, and you have more "recourse for remorse", whereas if you pay cash, finance or lease for at least part of the balance, then you're generally stuck with the car, all sales are final, etc.
There's also concern about fraud, obviously, and people buying on credit cards just to "rent" something cool for a few days and then and return with a threat to dispute if they don't unwind the deal. The dealership now has a car with more miles and more wear, plus real and opportunity costs. It's kind of like the old "superbowling" a TV on credit and returning it after the big game (popular back when big screens were much more expensive).
But the guy that whips out the Centurion to buy a new BMW is an easy exception. The dealership can get a guarantee from Amex for those select customers so there's no worry about a chargeback, plus they might get a break on the transaction fee (or simply have enough margin to eat it, or pass it back on the customer).
