Is the dealer required by law (or credit card company agreement) to accept your credit card for payment for a vehicle after a deal is finalized? I ask this because i intend to use my Discover card (1% rebate) for the $13,000 or so balance owed between my trade and the new F150. The dealer has been efusing to give me what I consider a good enough deal on my trade so i wanted to make up some of the difference with the credit card rebate. I plan on paying off the card balance after the 0% Discover deal is up with my home equity credit line. I am sure if I tried it they would say they can't accept credit cards for payment. Thanks!;-)

 

I don't believe credit cards may be used to purchase motor vehicles, at least not in my state. You may have to gey a cash advance against the card and then use the cash to pay the dealer. Good luck

 

:-X23 As far as I know you COULD use your dicover card for anything from a downpayment to the full sales price (if you got the credit)

I would, however highly advise that you DO NOT do it.

You will be CHARGED a FEE by most if not all credit card companies for the purchase as if you were getting a CASH ADVANCE. Then you would add to that the HUGE credit balance (for the purchase amount) Both of these would then be subject to the way higher then any new car loan interest rate. . .

In other words, why do you want to dig yourself into a finacial hole so quickly?

Petrol

 

Hey, me again. sorry I was so upset with your request for info on credit card that I forgot to ask another question.

Why don't you sell your "trade" outright. It will not be hard to get more then what any dealer would offer for almost any vehical that you would care to sell.

The only way a dealer will pay more for a trade then a privte buyer would is if he has "hidden" the extra $'s he is offering for your trade in the price of the new vehical that you are trying to buy.

Petrol

 

[updated:LAST EDITED ON 13-Apr-02 AT 10:29 AM (EST)]Well as I thought I said, I have a ZERO percent interest rate on my credit card for purchases in the next 3 months, plus I get 1% cash back. Then I was going to pay off the balance with my home equity line of credit @ 4.5% after 90 days (no credit card interest paid) so I can deduct the interest on my taxes. I have tried selling the vehicle myself but have had no interest even at below market prices. If I sell it myself I will owe sales tax on the entire new truck purchase as well so I need to sell it for $800 more than I could get in a trade to break even. Anyone interested in a 2001 Ranger Edge?

Oh, and my purchase price for the new vehicle is fixed - X-Plan, so the only variable is the trade-in $$

 

just a thought, but if were doing the same id get my equity loan first, then do the deal with the credit card, go home and send in the payment on the same day as the purchase. this way you still get your rebate, and your secure having already gotten the equity money..Murphy rides around on my shoulder though, so i leave no room for him to stick his nasty little hands into my bussiness if i can..
as far the dealer accepting the card, why not ask them? or another dealer in the area. if one says no and one says yess, take your bussiness to the yes guys..or threaten too at least. chances are that no will turn into a yes if you do your homework..

best of luck to you...

 

This deal is probally done by the time of my post but for future reference.. I worked at a car dealership for three years about ten years ago. I sold cars 4 different times that were paid for with a credit card. Dealers don't care how you buy just that you do buy.That has nothing to do with the interest problems you must deal with.

 

A friend of mine purchased his truck by credit card. He put $10,000 on his credit card. Upon delivery, he drove his truck to his bank and paid off his credit card using his line of credit.

His reasoning? $10,000 gets you a lot of aeroplan points. He now has 3 free tickets for his family to fly from Western Canada to the East Coast - all from a simple purchase!

 

Yep, I am not getting the trade-in $$ I know I should so I figure I'll collect the 1% cash back on the $13,000 trade balance rom Discover, then turn around and use my line of credit home equity to pay it off (4.5% deductible interest). That's $130 toward an accessory I would like.

 

[updated:LAST EDITED ON 24-Apr-02 AT 02:06 PM (EST)]I think your plan makes a lot of sense. You're taking advantage of the Discover rewards without incurring any interest penalty. Back to your original question, I don't believe that a busniess is 'required' to accept any credit card. The only excpetion might be if they accept Discover for some payments, such as mechanical work. In that case I do not believe they could refuse you. Remember that the business accepting payment with a credit card has to pay a percentage of the transaction to the credit card company, typically around 1 - 3.5%. Now maybe you can educate me on how to get a 4.5% ( even after the tax benefit ) home equity loan. Here in Texas I think it's double that.

 

The 4.5% is just the current rate at my bank. I have a Home equity line of credit that I can draw money from to pay for anything just by writing a check up to my limit (which is more than enough to buy a vehicle). The rate changes monthly and has been dropping . I think it's based on the prime rate and is always lower than the current fixed rate home loans.

 

>Is the dealer required by law (or credit card company
>agreement) to accept your credit card for payment for a
>vehicle after a deal is finalized? I ask this because i
>intend to use my Discover card (1% rebate) for the $13,000
>or so balance owed between my trade and the new F150. The
>dealer has been efusing to give me what I consider a good
>enough deal on my trade so i wanted to make up some of the
>difference with the credit card rebate. I plan on paying off
>the card balance after the 0% Discover deal is up with my
>home equity credit line. I am sure if I tried it they would
>say they can't accept credit cards for payment. Thanks!;-)

Nearly everyone accepts credit cards, I can't see an automobile dealer being any diffrent.

I would think that any dealer that doesn't take a credit card would be a fool and out of business.

As far as law... that's hard to say really.... but i'd doubt it. Any business can refuse service to anyone for just about any reason, but I can't imagine anyone in business not accepting a credit card, a business where the cost per unit is well over $10,000. But not every business takes credit cards, so there can't really be a law on this. I'm sure it would likely be perfectly legal for them to specify the form of payment they prefer, whether that be check, cachiers check, cash, credit card, or whatever, as you do sign a contract with the dealer to buy the car.

Just as if you were dealing with another human being, selling them a carton of faulty yogurt... it's reasonable for the human to specify the form of payment prefered, cash, check, credit card, or whatever.


Now you could say the dealer is dumb for not accepting a credit card for payment, very very dumb. But there isn't anything requiring any human to accept a credit card as a form of payment except for wanting to do business.

I remember in 1997 I had a friend buying his first new car. He went to the cash machine to pull out currency for a down payment, and the dealer didn't seem equiped to handle cash. When asked for a rescript, they just photo coppied the fan of 20's and hand signed it, "down payment for car xxxxblablabla".

 

im not sure but in my state,,,iven if you trade a vehicle in,,,you still have to pay sales tax on the full amount,,because they consider your trade as cash on sales..

 

Don't you have some Discover Card checks?





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