Buying a car getting miles (merged threads)
Sep 6, 2007 | 12:35 pm
#76
Join Date: Jan 2007
Posts: 2,905
I own a business, and the rate I pay to accept credit cards is determine buy the Merchant Processor, Type of card, and My average transaction amount. Here is a website to give you a idea what rates are.
http://www.infomerchant.net/creditca...rocessors.html
Also I have a merchant agreement with Visa/Mastercard/Amex and Discover and I CANNOT discriminate against a customer on what type of card they want to use or how much money they want to charge.
And i'ts not in the dealerships best interest to allow you to use your credit card to pay off the entire car purchase and let me tell you why!
Example: You negotiate a really good deal, dealership runs your credit score and it's fantastic 750 +, they are willing to sell the car to you below sticker, WHY?, because they are hoping to finance you car! When they finance your car they make additional money, they have prenegotiated interest rates with finance companies such as Citibank, BofA, Chase, Etc.
The dealership buys the interest rate at say 5.4% and sells it to you for 5.9% netting them .5% on the total transaction up front, and If you payoff the loan within the first or second payment the dealership will have to refund the .5% back to the loan company. So why would they just let you pay for the car with a credit card, it isn't in there best interest. Although technically, if you push the issue about taking the credit card they really don't have a choice!
http://www.infomerchant.net/creditca...rocessors.html
Also I have a merchant agreement with Visa/Mastercard/Amex and Discover and I CANNOT discriminate against a customer on what type of card they want to use or how much money they want to charge.
And i'ts not in the dealerships best interest to allow you to use your credit card to pay off the entire car purchase and let me tell you why!
Example: You negotiate a really good deal, dealership runs your credit score and it's fantastic 750 +, they are willing to sell the car to you below sticker, WHY?, because they are hoping to finance you car! When they finance your car they make additional money, they have prenegotiated interest rates with finance companies such as Citibank, BofA, Chase, Etc.
The dealership buys the interest rate at say 5.4% and sells it to you for 5.9% netting them .5% on the total transaction up front, and If you payoff the loan within the first or second payment the dealership will have to refund the .5% back to the loan company. So why would they just let you pay for the car with a credit card, it isn't in there best interest. Although technically, if you push the issue about taking the credit card they really don't have a choice!
Sep 6, 2007 | 2:34 pm
#77
Join Date: Sep 2004
Location: BDL
Programs: NWA Platinum, HHonors Diamond, SPG, YX, AA
Posts: 5,354
Bought a Nissan the last day of July. My dealer took $5,500 on a CC and I paid the rest by personal check. (first time I every bought a car without a loan and it felt good)
Sep 6, 2007 | 3:02 pm
#78
Join Date: Jun 2006
Programs: UA 1K MM, Starwood Plat, WN Alist and CP
Posts: 79
No problem. Called Visa and told them I was going to make a large purchase and from whom. Armed with a letter from the legal department at Visa I bought a Jeep Grand Cherokee without any problem. Put the whole amount on my Visa. Accountant at the car dealership was having a problem but i showed the owner the letter from Visa and he gave the approval.
Do your homework first and you shouldnt have an issue
Do your homework first and you shouldnt have an issue
Sep 10, 2007 | 9:32 pm
#79
Join Date: Jun 2005
Location: Marietta, GA
Programs: Marriott Titanium, Hilton Gold, Delta Million Miler, Hyatt Discoverist
Posts: 43
A few months ago I purchased a Certified Pre-Owned BMW for my wife. When I asked the salesman about using a credit card, he had to call the sales manager over. The sales manager told me that the back office would only allow $2500 on a credit card. After a little more discussion, I was able to get him to sign off on using my Skymiles AMEX for $7500. This was enough to get me to the next 10000 Medallion qualifying mile threshhold.
Sep 17, 2007 | 4:46 pm
#81
Join Date: Jun 2004
Location: Liberty International...
Programs: OMNI Platinum
Posts: 9,721
When I purchased my car three months ago, I went to both Honda and Toyota dealers and the Honda Manager told me that’s he can take only an X amount on the credit because he wasn’t going to pay the extra fee… He said he’d rather just not deal than have to pay the fee… All the dealers had the same tone when asked about putting it on Credit but the others wheren't that stern as the manager…
Last edited by ewrfox; Sep 18, 2007 at 9:59 am
Sep 17, 2007 | 5:15 pm
#82
Join Date: Jun 2007
Location: Santa Rosa,CA
Programs: UA, AA, HH Diamond,HertzGold,Interconental Plat Amb.
Posts: 62
A few months ago I purchased a Certified Pre-Owned BMW for my wife. When I asked the salesman about using a credit card, he had to call the sales manager over. The sales manager told me that the back office would only allow $2500 on a credit card. After a little more discussion, I was able to get him to sign off on using my Skymiles AMEX for $7500. This was enough to get me to the next 10000 Medallion qualifying mile threshhold.
Sep 17, 2007 | 6:14 pm
#83
Join Date: May 2006
Location: YVR
Programs: AC, BW, National
Posts: 268
Be tough!!!
You SHOULD be able to do better than that.
If you are not prepared to walk away, why would a dealership agree to give you anything. You must be tough or at least firm in these negotiations.
Good Luck,
SC
Sep 19, 2007 | 8:33 am
#84
Join Date: Jun 2004
Programs: aa co
Posts: 209
How many of us have had dealers say they just can't go any lower than a certain price, or don't want to give us any more on our trade? That stuff is negotiable and maybe they won't go beyond a certain price but it's not that they can't. And as many posts on this thread have pointed out, once you negotiate a price, they have contract with VISA, AMEX etc. which requires them to accept your card in full. It's not a question of whether they want to or not. It's a question of whether you are willing to call VISA and report them for not fulfilling their contract. There may be good reasons why you choose not to, but just because they give you a nasty tone don't assume you are out of options.
Nov 8, 2007 | 10:41 am
#86
Join Date: Jan 2001
Posts: 1,877
When I try to pay with my Amex at some places, I'm told there is a "minimum charge." When I remind them that it is against their merchant agreement, I usually get "the look" and my card is then accepted. If they still reject my card, I call Amex and report them. Sorry, but I have the card because I usually carry no cash unless I know I'm going to need it.
Honestly, the fact that some small business owners are "trying to make ends meet" and "trying to support their families" is none of my business.
Last edited by DelrayChris; Nov 8, 2007 at 10:49 am
Nov 8, 2007 | 11:59 am
#87
Join Date: Dec 2004
Posts: 8,214
Personally I think the credit card companies SHOULD allow merchants to set a small minimum, or else they should charge merchants a lower fee when small purchases are made.
Last edited by rrgg; Nov 8, 2007 at 6:12 pm
Nov 8, 2007 | 3:21 pm
#88
FlyerTalk Evangelist
Join Date: May 1998
Location: Massachusetts, USA; AA 2.996MM & Plat Pro, DL 1MM, GM & Flying Colonel
Posts: 25,006
In some ways I wish I shared your attitude of not caring about the other guy as long as I get mine, things might be simpler if I could say "screw you" that easily, but I think my life would be poorer in many other ways if I did. Perhaps when you get past your early 30s you'll gain a bit more understanding of the others we share this planet with, some of whom don't have whatever advantages you do, and mellow out a bit. There are more important things in this life than forcing someone to give you nine airline miles for a Chinese take-out lunch, when the 30 to 50 he pays Visa for the privilege is more than his margin on your meal.
Nov 30, 2007 | 10:54 pm
#89
Join Date: May 2001
Location: Florida
Posts: 151
I orderd a new car that will arrive in about two weeks. In preparation for payment I called Amex to be sure that they would back me up should there be a problem with paying in full with their credit card. What I was told surprised me and I wonder if I got the correct info. They said that if a maximum amount was set for all credit cards (Visa, MC, etc.) then they can set a maximum for Amex as well. Only if they allow full payment for the other cards do they have to allow full payment using Ames. Furthermore I was told that there are different merchant agreements with different vendors and some of these agreements allow for minimum/maximum payments. This is in direct contradiction to what I have been reading on this thread and I wonder if I have been given the correct information. Is there a particular Amex department that I should contact? A legal department? Any and all suggestions will be appreciated.
Dec 1, 2007 | 12:49 am
#90
Join Date: Apr 2005
Location: In the corner plotting world domination
Programs: 1K
Posts: 1,122
I orderd a new car that will arrive in about two weeks. In preparation for payment I called Amex to be sure that they would back me up should there be a problem with paying in full with their credit card. What I was told surprised me and I wonder if I got the correct info. They said that if a maximum amount was set for all credit cards (Visa, MC, etc.) then they can set a maximum for Amex as well. Only if they allow full payment for the other cards do they have to allow full payment using Ames. Furthermore I was told that there are different merchant agreements with different vendors and some of these agreements allow for minimum/maximum payments. This is in direct contradiction to what I have been reading on this thread and I wonder if I have been given the correct information. Is there a particular Amex department that I should contact? A legal department? Any and all suggestions will be appreciated.
In post #47, Ritz posted a link to the Amex agreement. Have you read it to see if the info therein coincides with your phone conversation?
https://www152.americanexpress.com/E...ne t&origin=6
(You might check for a date on the document to ensure the info is still current).
Also, there is the ever popular FT 'trick' of calling back and speaking with someone else to see if the info is consistent.
I will also be buying a car soon and have found this thread to be quite enlightening. I like the idea of arriving at the dealership armed with a letter from Visa (the best defense is a good offense!)
Does anyone have an opinion (oh, right, this is FT
) on what is an appropriate mark-up on a car... 'X' over invoice...DD