Originally Posted by
kevinsac
I have now purchased 5 cars with my credit card. Simply stated, a dealership can not deny your use of a credit card to purchase your car.
Not true, as I'll explain below...
I go in and simply negotiate the price. I tell them they will have their money before I walk out, if we reach a mutually agreeable price. I do not lie, I do not ever mention check or cash or credit card. I just negotiate.
Once the sales price is set, keep in mind that they want you to sign the papers as quickly as possible. They want your signature on a contract.....which they also must sign! Then, they take you to the finance guy. And that's when they say "We do not take credit cards." I tell them that "You must." And they again say "Nope."
I walk out. Plain and simple. They stare, and can't believe I am walking away.
At home, I have a standard letter which I have used each time and fax to the owner. In summary, I remind them that the legal department of VISA International has advised me in writing (copy of VISA letter attached) of the following conditions in the contract which dealership must have signed with your financial institution:
1) Merchants are not permitted to establish a minimum or maximum transaction amount.
2) Merchants are not permitted to pass on the transaction fee to the cardholder.
Simply stated, if dealership accepts a credit card for any type of purchase (such as in their service dept), then they must accept the credit card for all transactions, regardless of the amount.
I suggest that they contact thier financial institution or their legal counsel to determine what the dealership's rights and obligations are.
Your strategy works (and it's a good one), but not for the reason you think. The parts & service department is almost always a separate business entity from the sales department, so indeed the sales department can refuse credit cards while the P&S department can continue to accept them. Even a VISA rep said so as referenced by a post on page 1 (post #14) of this now merged thread. Concerns of legal entanglements WRT the CC merchant agreement do not scare the sales department.
I always end the letter with "I would appreciate a reply tomorrow morning, so that I can conlcude our transaction and pick up my new car during lunch."
It's never failed. ^
THIS is why your strategy has worked 5 for 5 times. You've walked out the door, but left the door ajar to let the dealership mull the decision of eating the CC transaction fee for a sure-fire sale. Profit margins over the invoice price nowadays give way to hidden quota bonuses and customer service score bonuses. A dealership allocates a percentage of sales allowed to be losses knowing they can make it up in the ways I mentioned. Your strategy of giving the dealership a day to allocate that sale to that percentage is excellent. Still, it has nothing to do with them conceding they must accept CC payments.
Regards,
Chris