Originally Posted by
thewill
Credit card companies take 2%. Dealers are willing to pass along the fee if you want to charge the entire car. The $2-3K limit is to make it easy for a customer to make a down payment. Dealers are willing to lose $400-600 vs losing a potential sale.
About that 2% --
1) Why so high? Didn't Costco offer a merchant agreement that's 1.57% + $.30/transaction? I'm sure that's changed, but don't high-volume merchants like auto dealers get a better rate?
2) If it came down to it, paying 2% to the dealer might work out fine if you have a good rebate, possibly including a promo, AND -- if timed right -- up to 50 days free interest. You could also negotiate this -- start by offering nothing, threaten to off the deal and complain to CC issuer, finally offering, say 1%. Reluctantly ("I shouldn't have to do this, you're not allowed to charge ANY CC fee . . . ")