miny

I'm purchasing 05TL w/navi with my credit card.
Actually, 1/3 with credit card, 1/3-cash, 1/3-finacing. 1.99% APR with my credit card (until the balance is paid in full) but 4.5~5.5% from acura financing.
Are there any disadvantages with my purchasing method? I heard there might be some bank charges if I pay with credit card. is it true? what is best way to purchase concerning about money, apr... ??(can pay cash 10k~15k)

thebolt99

They told me the most I can put on a CC was $3000 I wanted to put more

F23A4

AFAIK, you cant buy a new vehicle with a credit card. (Correct me if I'm wrong on that, though.)

6mtV6

Can't you put the down payment with your CC?

jhunter9999

thebolt99 is right, you can't put more than $3000. I wanted to put it on my credit card as well for the miles.

F23A4

yes. But I believe you are limited to $3,000 (like theBolt posted).

ndawood

as long as have the avaliable credit you can purchase anything on your credit card.

most dealers do not like doing this as they have to pay an additional 2% on the transaction. I wish i could have used my credit card to buy my car, the points would have been really nice, but the dealer refused.

ndawood

get the black american express card.........

jimthegreek

Most dealerships will not allow you to put your downpayment on a credit card, becuase simply...

your putting yourself in more debt than your credit report just showed.

Most dealers also, will not let you buy the car on yoru credit card. Either, they will deny the purchase since they are not making money off the financing, or they will charge you the credit card fee's assocaiated with the card. 1.9-3.5%. So for 35000 out the door, your gonna pay about 700 in credit card fees they will pass onto to you.

tizo

unless it`s because i`ve used the same dealer/salesperson for numerous sales... i put $200 down from my cc to secure the shipment of my TL... then 20 days later, put another $5000 in over that on the cc... maybe it`s just the dealer, unless the platinum helped, but doubt it though...

lindros2

my dealer only allowed me to use a Check Card (draw from banking account). I believe it's partially due to fraud, partially due to that THEY (acura) want the money from financing, and partially due to credit card rules ("soft" rules).

God knows I would have put a lot on my card instead of giving it to Honda Financial Services...

dizzy1

Can you get the low CC rate if you write yourself a check against the CC. I did this for 14k before on Amex at 3.9 til paid in full. No problem with CC company. Just give more cash and this transaction won't show on your credit report for a minimum of 30 days.

EmuMessenger

It depends on the dealer. I once bought a $13,000 car on a credit card. It is a case by case basis.

Good luck!

1995hoo

I put $5,000 on my American Express. I wanted to put the full $17,500 down payment on there but they refused. (I wanted the Membership Reward points and the additional amount towards qualifying for Centurion if I were to want it.) They initially wouldn't let me charge more than $2,500 but I said that would be a deal-breaker because my father had bought a TSX from them three months earlier and they had let him do $5,000. They backed down.

The two big issues for the dealers have been raised already--(1) the credit card issuer takes a cut (and American Express takes more of a cut than the others), and (2) where they are really making their money is on the financing, so the more they let you charge, the more it's a double hit for them due to the increased cut and the loss of interest payments.

I suppose if you want miles, you could get either an Alaska Airlines check card or a US Air check card (both are issued by Bank of America). US Air might not be around much longer, though. Alaska does have alliances with British Airways and Continental, so those miles wouldn't be totally useless.

6mtV6

Yea, get the black AMEX.

1995hoo

That's if you charge enough to qualify. But it's irrelevant, anyway--the point people are making has nothing to do with the "credit limit" and everything to do with the dealer not taking any credit or charge card for more than a specific amount. Having a Centurion wouldn't help--just like having Centurion doesn't help at a restaurant like the Inn at Little Washington, which doesn't take any American Express. (Odd, really, given the number of famous people who go there, but anyway, I don't want to hijack the thread.)

Stewie

This isn't true. The dealer doesn't give a crap about your debt level, so long as they get their cash.

The real reason most dealers will limit the amount you can put on your CC is simply because they pay a percentage fee of the money.

I think they let me put $5k down on my CC because I wanted the frequent flier miles.

jimthegreek

The dealer doesnt, but the bank financing you does.

Road Rage

I once had a huge line of credit builkt up as a juvenile, and actually had a credit card that would allow me to buy a house!!! No kidding.

I see no reason i could not buy a car on my Amex. On my last business trip, I had well over 30K in expenses floating around for several months, with no "excuse me, sir, but aren't we a bit over-extended?". If you have all 1's in your credit history, you would be amazed at what you can buy. Hell, at a higher level like arbitrage was at in the 1990's, you could buy a multi-billion dollar company on junk bonds.

Now, try renting a car with cash only! That is a real accomplishment.

6mtV6

Calm down. I was only joking.

lindros2

NOTES:
1. Things have definitely changed over the past couple of years (credit card companies have learned). A friend of mine was able to pay off his car and part of his house on an Optima or Mastercard. The credit card company went ballistic but couldn't do anything. Touche to him for beating the system.

2. I can't agree that auto finance companies are worried if you put part of a car on a card, thereby extending your debt. If you're going to buy/lease a car, you're going to extend your (non-revolving) line of credit anyhow, and you don't get a loan based on one month, but a longer credit history.

3. Travel charges are normally accepted graciously. I regularly have AMEX bills of $5000-15000 (none shows up on my personal credit report).

-josh

miny

Thank you all for all replies...
the salesman i talked to said they would charge about 2% of bank fee. I'll contact other dealer~~

Twenties

Putting 30,000 on as credit card debt will probably lower your credit rating.....unless you've got 100,000 in available credit card limits.

whereas, a 30,000 car loan will not lower your credit score.

2 different types of debt. revolving and secured.

i've put $5000 down payment on a credit card (AMEX) with no questions asked. As far as the whole car i've never heard of that but i bet i CAN be done, but the question is SHOULD you do it?

Neogeek

hmm my dad bought his 540i on the green amex card... got a first class ticket to England that summer

1995hoo

I don't necessarily agree because I regularly have $20,000 American Express bills because I charge my quarterly estimated income tax payments. This shows up on my credit report, but it also shows that I pay it off promptly at the end of the month. Point being, having big charges is not a negative as long as you routinely pay your bills, because that indicates to them that if they extend credit to you, they are not facing a high risk that you won't pay your debt.

TBone2004

same here - i wanted to put it all on my CC, and get the Upromise $$ for my sons 529

but I think I was limited to 3k - sorry son

currage

Neither Visa or Mastercard limit the amount that you can put on your credit card. If anyone puts a ceiling on how much you can pay with a credit card it would be the dealer. From my past experiences, the dealer doesn't car, but that may be different depending on the size of the dealership?

EmuMessenger

[QUOTE=Twenties]Putting 30,000 on as credit card debt will probably lower your credit rating.....unless you've got 100,000 in available credit card limits.

whereas, a 30,000 car loan will not lower your credit score.

[QUOTE]

This is not true.

In fact, initially, your credit score will drop as a result of the credit inquiry and then the origination of the loan.

Opening a new loan DECREASES the overall age of your credit. Seasoning (age) is a factor in determining credit score.

JSK22

Exactly. Dealer only let me put $2,000 on my credit card, missed out on those points...

rontatuaf

I noticed some of the people qouted rates from Amer. Honda Finance of 3.9 and 4.9%. I bought my car in late July and got 2.9% from Honda. Money is real easy to get now so I'd hold out for a lower rate.

vtechbrain

If your dealer accepts it you can buy anything on your credit card up to your card limit. Even Amex has a limit depending on your income and payment history. On purchases above a certain limit AMEX will have to approve the charge by phone. Personally, I buy everything regardless of price with my card to rack up bonus points, after the purcahse I can arrange financing in the interim 30 day period.

HAWAIIS FINEST

It depends on the financial advisor at the dealership on how much you can put down on the cc. I put $6000. on my cc. Disney miles!!!!! LOL

JT3

Actually, it is true (sort of), although everything you said is true as well (again, sort of). The full truth is that both ways will lower your score, at least initially, but the credit card method will lower it more.

The FICO (Fair Isaac and COmpany) credit score that nearly everyone uses nowadays is a numerical score ranging from 300 to 900. No human being could probably ever achieve a 900 score, and there is no single number that represents the boundary between good and bad scores, since each financial institution sets their own high-water-mark in that area. However, most institutions place their mark of "excellent credit" somewhere around 700-720. Anyway... before I stray too far from the point, the score is based on the following information from your credit history:

1. Payment History (35%) - This is what MOST people think that the score is ENTIRELY based on, which is incorrect.

2. Outstanding Debt (30%) - Balances on Home and Car loans, etc. However, this score is affected differently with credit cards, because each credit card is looked at separately, with respect to how much of your limit is used. In other words, they look to see what percentage of your limit is reflected on your balance. The rule of thumb here is that you want to keep balances under 30% of your limit on EACH card. The more cards you have with a high percentage, the lower this score will be.

3. Duration of Credit History (15%) - How long you've had credit, pure and simple. This is where EmuMessenger was mistaken in the above quote. While duration is a factor, it is the duration of your total credit history that counts here, not how NEW each loan is. Assuming you establish credit at 18, you're much better off here at age 50, than at age 20. Where "newness" of loans hurt you is in section 2, since the balances will be higher, and in section 4, which is...

4. Number of inquiries (10%) - Although inquiries can stay on your report for up to two years, FICO only looks at one year. The more inquiries the lower your score. What's more, the existing inquiries are weighted by time, so NEWER inquiries will lower your score more than older inquiries. You have an inquiry with each new account, so newer accounts mean newer inquiries. This is the only place that "newness" of an account affects your score without regard to credit balance.

5. Types of Credit (10%) - This one is kind of tricky. The rule of thumb here is that revolving credit will hurt you, although that's not exactly correct either. This section is kind of like a cake. If the ingredients aren't EXACTLY right, in the right ratios, put in at the right time, then the cake won't come out as tasty. Same thing here. The wrong ratio, or the wrong timing, and your score is affected. However, this is definitely the "too much of a good thing" section. Too many credit cards will DEFINITELY hurt you in this area, just as NO credit cards can hurt you.

Anyway, as you can see, while the credit card companies would LOVE to see you place a $30K charge on your new plutonium card (platinum doesn't go to $30K, does it? I have a $20K limit on one, but that's about the highest I've seen), it probably isn't as good for your credit rating as obtaining a normal car loan. Even if you pay promptly, sections 2 and 5 will be affected by such a high credit card balance. Of course, if your yearly salary is such that $30K is the lint in your change pocket, then you probably wouldn't be as affected as the rest of us slobs... then again, you probably don't care as much about credit at that point anyway.

On another note, previous posters are correct in stating that the dealers certainly won't like this tactic, and most will forbid it, or at least pass on the extra cost to you. The ugly secret behind credit cards is that the retailer pays a fee for EACH transaction, ranging up to 5 percent (sometimes, even more), but usually hovering around the 2% mark. Most retailers simply eat this fee, since the lost sales from not accepting credit cards would cost them far more. Debit fees are usually less, which is why most retailers are almost forcing you to use debit now... ever wonder why those electronic touchpads are starting to just ASSUME that you want to use debit, forcing you to hit "cancel" in order to use credit? That's why. The retailers don't want you using credit because it costs (them) more. The bottom line, however, is that unlike cash, the retailers don't HAVE to accept your credit card. They are perfectly within their rights to say that they don't take charges over a certain dollar amount. Most dealers will do this. Most of the ones that will accept your card will make YOU pay the fees. There are probably a few out there that will gladly let you use your card, but I probably wouldn't want to buy a car there, because I'd be wondering why they were so willing to eat a $700+ credit fee. I'd have to assume that I paid at least $700 too much for my car.

DarkZ

i paid the whole thing with my credit card, the dealership usually dont like that because they get charged 3% transaction fee, try to work with them with a total number, then decide, i love the points i just got after i bought my TL

Twenties

1995hoo:[U]

If you're putting $30,000 on a credit card and paying if off in cash the next month, that is an entirely different transaction... of course it would improve your credit rating.

What i was referring to is the distinction between charging 30k to a credit card (not an AMEX green card which is a "charge card" not a "revolving credit card"-- i'm sure you know the distinction) rather than taking a $30,000 secured automobile loan. The point is revolving credit card debt would be worse for your credit card rating than automobile secured debt... just like a $300,000 mortgage debt would be better for your credit rating than a $300,000 credit card debt.

Its very simple--- your score will GO DOWN if you buy a TL in its entirety on a credit card and you don't have a VERY LARGE credit limit....plain and simple.

Quote:
Originally Posted by Twenties
Putting 30,000 on as credit card debt will probably lower your credit rating.....unless you've got 100,000 in available credit card limits.


Quote: 1995hoo
I don't necessarily agree because I regularly have $20,000 American Express bills because I charge my quarterly estimated income tax payments. This shows up on my credit report, but it also shows that I pay it off promptly at the end of the month. Point being, having big charges is not a negative as long as you routinely pay your bills, because that indicates to them that if they extend credit to you, they are not facing a high risk that you won't pay your debt.

Twenties

EmuMessenger:[U]

I really think we are all saying the same thing.

As EmuMessenger and JT3 mentioned above, yes a 30,000 car loan will TEMPORARILY lower you score based on the CREDIT INQUIRY---any loan application will do this. (in the short run)

But the LOAN ITSELF... a secured automobile loan... WILL NOT lower your credit rating UNLESS you've OPENED a relatively high number of new loans and/or lines of credit in a relatively short period of time---exactly as JT3 makes the point to.

In the long run--and as a general rule--- there is no denying--- buying expensive cars on credit cards is not a saavy business move. Here's why:

(1) The lowest rates i've been offered on credit card purchases/balance transfers is 3.9% fixed (forever) or 0% introductory (1 yr rates). You can get about the same 3.9% on a car loan.

(2) As far as those using credit cards for airline miles or rewards or whatever.....those things are hilarious to me--- it takes like $10,000 in charges to equal a $100 voucher.... the return on those cards is like 1%---wow! Not to mention the fact that those airline cards generally charge an annual fee or higher interest rates which then negates the 1%---good grief.

Like I said, if you have 100k and use 30k on a credit card.... assuming your getting the purchase at a better rate (that is FIXED and not introductory) than you could get a secured auto loan (which is unlikely but possible) then you can go ahead and charge it.

But if anyone thinks as a general rule credit card debt and secured debt are viewed the same by lenders/FICO... they are mistaken.


[QUOTE=Twenties]Putting 30,000 on as credit card debt will probably lower your credit rating.....unless you've got 100,000 in available credit card limits.

whereas, a 30,000 car loan will not lower your credit score.

[QUOTE]

This is not true.

In fact, initially, your credit score will drop as a result of the credit inquiry and then the origination of the loan.

Opening a new loan DECREASES the overall age of your credit. Seasoning (age) is a factor in determining credit score

apwalsh

I think you have to be invited to use the black card.

chrisandro

I think what you should have asked was (could you use your credit card to pay for part of you new car purchase?) Not "I'm purchasing 05TL w/navi with my credit card" as that meant to all of us that you had already purchased 100% of the car on your credit card.

miny

Yes.. Chrisandro..
I, definitly, should have asked like what you said. but I think I did mention about that. anyway.. my bad. Many comments assume that i'm purchasing 100% with credit card. but that's not my plan

Here is my plan
""I'm using credit card just 1/3 of whole price (around 10K) (because I got an offer 1.9% balance transfer) and 1/3 with cash, 1/3 with loan from honda which will be over 4.5%""

what about this plan? still be affected on my credit score? (card limit is 18K)

Anyways.. I really appreciate all replys and I learned a lot that I haven't heard before.

chrisandro

1.9% for the balance of the loan and your limit is $18,000. Thats a great deal but I would just consolidate any other dept and get a low fixed loan rate. Suck that credit card companys charge so much to us for using it and the merchants for taking it.

Will the dealer take one of those credit card checks from you? If so do it that way and dont tell them its a credit card or can you make a check to yourslef deposit in your bank and then put that towards the car?

Just an idea