Jalinth has a very good point, but I suspect the dealers are probably not actually claiming they pay 2% -- rather that they want 2% to do it. IOW, having haggled them down and agreed to pay $X for the vehicle, they want some incentive to put it on your card.

IOW, don't look on it as "paying their cost for the CC" bur rather let them take a profit on that too -- make it part of the negotiation.

So for Gogie, for example, when you've finally agreed on the cash price of $X you'll pay, before agreeing that negotiations are done, tell them you'll only buy it for $X+2% put on your credit card (assuming 2c is what you're willing to pay for the points). If they're only paying the bank 1.75%, it would be hard for them to refuse. If they do, you can do the same thing as if they'd refused to meet you at $X.

Of course this is all theoretical since I've never done it (as a Basic member, not that interested in yet another 40K AP points). And that 0.25% is only $100 in their pockets on a $40K CC purchase.

=aw