Buying a car with the card
Jun 6, 2004, 8:07 pm
#1
Original Poster
Join Date: Sep 2003
Location: Lees Summit (KC), MO 64064
Programs: AMEX Plat IDC, AA Plat, NW Gold, HH Gold, SPG Gold
Posts: 80
Buying a car with the card
Hola. Simple question. Do major car dealerships take the AMEX Card for the purchase of a vehicle? Has anyone had any experience on this topic.....?
Jun 6, 2004, 9:17 pm
#2
Join Date: Sep 2003
Location: Pasadena, TX USA
Programs: Co Plat - Marriott Plat
Posts: 589
It has been talked about on here before. Usually a car dealership will only take a deposit or down payment charged to a credit card. I don't think there is any dealership that is willing to pay 3% or 4% for the entire purchase price to the credit card company.
Jun 6, 2004, 10:11 pm
#3
Join Date: Oct 2003
Location: Somerset, NJ, USA
Posts: 51
Just saw an AMEX commercial during the NBA Finals game...showing an NBA player at a car dealer and pulls out his AMEX to make the purchase. I have to believe that if you were willing to cover the fee of 3% or 4% for the dealer they might consider it.
Or just charge up the highest deposit amount you can at AMEX.
Later,
ak_co
Or just charge up the highest deposit amount you can at AMEX.
Later,
ak_co
Jun 6, 2004, 10:40 pm
#4
Join Date: Aug 2001
Location: Erie, CO USA
Programs: UA, Marriott, Starwood, et al
Posts: 1,559
This experience is in one of prior threads as well. I tried, and even told the dealer that I intended to pay with my Amex, in our e-mail conversations. When I went to get the car, the dealer balked. I guess he didn't think I was serious. I very seriously considered walking out of the dealer then and there, but I knew the vehicle with configuration I wanted was in very limited supply in the area and I didn't think I could find another. I ended up charging only the deposit.
In the process, I did contact Amex to make sure the charge would be accepted. They had to do some paperwork, but got it set up fairly quickly.
Some of the car sites (cars.com, carsdirect.com, etc.) showed the Amex symbol on their site at the time. I don't know what happens in those cases if you buy a call from them.
In the process, I did contact Amex to make sure the charge would be accepted. They had to do some paperwork, but got it set up fairly quickly.
Some of the car sites (cars.com, carsdirect.com, etc.) showed the Amex symbol on their site at the time. I don't know what happens in those cases if you buy a call from them.
Jun 7, 2004, 2:03 am
#5
Join Date: Nov 2002
Location: London
Programs: I've got three passports, A couple of visas, Don't even know my real name.
Posts: 909
I brought a new motorbike on my Amex once and charged the £8,000 to my Amex. The dealer took the card without question.
The dealer probably paid a merchant fee of 4% (£320) of the charge to Amex. I got the reward points, but given the option I would have taken a discount off the price and paid cash. Even half the merchant fee would have been more valuable than the points I got.
If a dealer is willing to accept any credit or charge card for a large transaction like this then it is worth mentioning the merchant fee and asking if they will give a discount for payment by another method. Even if you get 2 or 3% off the price, the discount you get would more than compensate you for the miles you miss out on.
The dealer probably paid a merchant fee of 4% (£320) of the charge to Amex. I got the reward points, but given the option I would have taken a discount off the price and paid cash. Even half the merchant fee would have been more valuable than the points I got.
If a dealer is willing to accept any credit or charge card for a large transaction like this then it is worth mentioning the merchant fee and asking if they will give a discount for payment by another method. Even if you get 2 or 3% off the price, the discount you get would more than compensate you for the miles you miss out on.
Jun 7, 2004, 7:38 am
#6
Original Poster
Join Date: Sep 2003
Location: Lees Summit (KC), MO 64064
Programs: AMEX Plat IDC, AA Plat, NW Gold, HH Gold, SPG Gold
Posts: 80
So it sems as if most people in this forum don't think it's worth the fee merchants charge to use the AMEX card for a vehicle. However, it's good to know that at least I can probably charge the down paymnet to the card. Thanks for the info.
Jun 7, 2004, 11:06 am
#9
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Between AUS, EWR, and YTO In a little twisty maze of airline seats, all alike.. but I wanna go home with the armadillo
Programs: CO, NW, & UA forum moderator emeritus
Posts: 35,415
If the dealer takes Amex (or any card) for the full price of your vehicle then you didn't get a very good price. Amex has special deals with car dealers that don't require them to accept more than a certain amount per purchase. So, if they have an Amex sign out front they don't have to accept that as payment for the full amount of your purchase.
Jun 7, 2004, 4:10 pm
#11
Join Date: Jan 2003
Location: FLL
Programs: delta pm, aa exp, hilton diamond
Posts: 411
I have bought a car on my amex twice in the last eight years. I am lucky that there is a lot of car dealers with in a 100 miles of my home. I called around and found one who would take the card. I had what I thought was a good deal at another dealer but when I showed up to pick up the car he would not take amex. So I walked the walk ended up saving me $800.00.
Jun 7, 2004, 7:40 pm
#12
Join Date: Mar 2004
Location: WINTER PARK, FLORIDA
Programs: spg plat, delta,cont. gold
Posts: 84
I am part owner of an independent car dealership in Orlando, we accept all credit cards. However, most people finance their vehicles so it does not happen often for full payment.
We just eat the fee about 2.5 % amex
If anyone is interersted WWW.advantageauto1.com
What a great way to gain *points
We just eat the fee about 2.5 % amex
If anyone is interersted WWW.advantageauto1.com
What a great way to gain *points
Jun 8, 2004, 5:39 am
#13
Join Date: Nov 2002
Location: London
Programs: I've got three passports, A couple of visas, Don't even know my real name.
Posts: 909
Originally Posted by EQ4803
I am part owner of an independent car dealership in Orlando, we accept all credit cards. However, most people finance their vehicles so it does not happen often for full payment.
We just eat the fee about 2.5 % amex
We just eat the fee about 2.5 % amex
If someone was going to buy the car on Amex, then offered cash, how much discount would you be prepared to give?
Jun 8, 2004, 11:27 am
#14
Join Date: Apr 2003
Location: Roswell, GA USA
Posts: 792
I have a friend that owns a car dealership, (EQ4803 would know more than me)......I asked him this very question.....
He said it is VERY rare that someone comes in to offer to charge the entire purchase of a car to their charge/credit card.....
It is VERY common that people will make a down payment or partial down payment via credit card......
But he has had to occassional customer walk in and offer to pay the entire purchase by charge/creidt cards.....he says that we make the potential customer a cash price or charge/creidt cards, typically you can expect the charge/creidt card price to be 3-5% higher than the cash price.....makes sense, if you want a bottom dollar price you cannot expect to pay an extra $300-$500 on the deal of a $10,000 tranasction, that should be the responsibility of the customer....
BUT look at the flip side.....going on the high side.....at 5% on $10,000, that will cost the customer $10,500, that will yeild 10,500 points, valuing point per value of $0.02, 10,500 points have a "cash" value of $210, means the "net" cost would be $10,500-$210 = $10,290.
Ironically my buddy had a customer buy a car on his american express, paid the 5%, but this customer DID not have the cash to buy a car....the customer did have the room on his amex...what he did....went out got pre-approved for a loan.....told the bank what he was going to do....did it....and then paid his amex....so even if you dont have the cash in hand, you can still pay through a monthly loan & route it through your bank......
Ric
He said it is VERY rare that someone comes in to offer to charge the entire purchase of a car to their charge/credit card.....
It is VERY common that people will make a down payment or partial down payment via credit card......
But he has had to occassional customer walk in and offer to pay the entire purchase by charge/creidt cards.....he says that we make the potential customer a cash price or charge/creidt cards, typically you can expect the charge/creidt card price to be 3-5% higher than the cash price.....makes sense, if you want a bottom dollar price you cannot expect to pay an extra $300-$500 on the deal of a $10,000 tranasction, that should be the responsibility of the customer....
BUT look at the flip side.....going on the high side.....at 5% on $10,000, that will cost the customer $10,500, that will yeild 10,500 points, valuing point per value of $0.02, 10,500 points have a "cash" value of $210, means the "net" cost would be $10,500-$210 = $10,290.
Ironically my buddy had a customer buy a car on his american express, paid the 5%, but this customer DID not have the cash to buy a car....the customer did have the room on his amex...what he did....went out got pre-approved for a loan.....told the bank what he was going to do....did it....and then paid his amex....so even if you dont have the cash in hand, you can still pay through a monthly loan & route it through your bank......
Ric
Jun 8, 2004, 1:07 pm
#15
FlyerTalk Evangelist
Join Date: Jul 2001
Location: America's Finest City
Posts: 10,936
We just bought two vehicles from a Lexus and Toyota dealer that share common ownership. They would only accept $5K per vehicle on Amex; balance was cash. This is the best I could find; all other area dealers maxed at $3K per vehicle. They agreed to our price for both vehicles, so the 10000 starpoints are just a bonus.
