Car on Credit Card, points and balance transfer

[DLD]

Hi,

I'm a bit of a churner and we are looking for a new car.

I'm exploring the option of paying on a card, and wanted to ask if anyone has done, or decided against something similar.

Points should be nice, especially if a new card and getting some bonus points. CC Fee ~1.5% on approx $45000, will be about $675, so pretty sure that would offset the value of the points. However, if I can balance transfer it and get 2 years interest free, then even 1 year of interest in a savings account on that $45K would be about $2.25K.

Curious for opinions. We could pay cash now so paying off the card in a certain time frame is not an issue, I would set up an autopay if I was able to get a balance transfer.

I know most cards reduce the points yo earn after a certain limit is hit each month, not sure if there are some that don't or any that have a high limit?

Cheers!

 

[Happy Dude]

I'm sure there are plenty of cards that have limits of $45k and higher and that have no caps. Dunno if your circumstances allow to get one.

When I bought a few years ago, the dealer had no fees for amounts up to $5k (it was intended to take deposits) but I used Amex to pay $5k chunks before he put a stop to it. Then just paid cash for the rest. I think the BT option is a very good idea. Just need to decide if $675 for $45k is a value proposition for you.

 

[ZigZagWanderer]

I tried to buy a car from a dealer on a card in 2002, and they said the $22k was above their limit to accept. I'm not sure if that would still be an issue.

Given that they pay a significant amount for cc transactions, they probably won't be keen, even if possible.

 

[daft009]

I've purchased multiple cars on C.C never an issue.

Think I'm at 4 or 5

 

[daft009]

2 friends have done a B.T too and got a "cheque to self" and paid off the B.T within the interest free limit.
like you, they just wanted to leave the cash earning interest/saving interest in offset

 

[LostRedditor]

I've purchased multiple cars on C.C never an issue.

Think I'm at 4 or 5

Can you elaborate on type of card? And was it all in one transaction or did you split it?

 

[p--and--t]

I bought my current car about 7 years ago on my ANZ Black Visa (1pt per $ for first 7k then 0.5 points per $ afterwards). The dealer allowed the first 5-10k as the "deposit" then charged a cc fee for the remainder.

I wanted to buy using my Diners like I did a few years back (1pt per $ unlimited) but the dealer as very reluctant and the cc fee chargeable.made the points not worthwhile.

 

[daft009]

Can you elaborate on type of card? And was it all in one transaction or did you split it?

The first few I used the Amex explorer and just put it into credit and got them to charge the whole amount the next day.

I also used a payment processor for one and did it over a couple of days, dealer didn't have an issue with this.

The next couple I used my stgeorge visa which I also put in credit to cover the entire amount.

The most recent was about a year ago and just put it on the Amex charge card so didn't need to worry about limits

 

[Cruiser Elite]

~100K for new car - Visa 0.88% / Amex 1.76% - St G Visa 75K KF pts for $880 = $0.0117333 / KF pt does it not?

 

[daft009]

~100K for new car - Visa 0.88% / Amex 1.76% - St G Visa 75K KF pts for $880 = $0.0117333 / KF pt does it not?

the STG amplify is now 3/1 for KF.

so $100k will earn you 150k amplify points = 50k KF points for $880 CC fees = $0.0176/KF point as per me

OR somwhere in between my calculation and your calcuation if you wait for a VFF bonus then transfer there and then to KF

 

[Cruiser Elite]

Yep you right but I forgot Bday bonus so 100K eff = 55K pts = $0.016/pt.

 

[daft009]

Yep you right but I forgot Bday bonus so 100K eff = 55K pts = $0.016/pt.

Aah yes forgot that too

 

[LostRedditor]

I have a question fairly related to this topic so so will ask here.

I bought a new car last year with 25k down and 20k on finance. I owe roughly $15k via Power Alliance Finance (it was the financier Subaru used) and I'm keen to pay it off with a credit card. They don't accept CC payments, only BPAY or bank transfer. I tried using Sniip but they don't accept payments towards that organisation.

Is there any good way to pay this off with a CC?

 

[daft009]

I have a question fairly related to this topic so so will ask here.

I bought a new car last year with 25k down and 20k on finance. I owe roughly $15k via Power Alliance Finance (it was the financier Subaru used) and I'm keen to pay it off with a credit card. They don't accept CC payments, only BPAY or bank transfer. I tried using Sniip but they don't accept payments towards that organisation.

Is there any good way to pay this off with a CC?

if you have an ABN, you can try pay.com.au or yakpay.com.au

 

[LostRedditor]

if you have an ABN, you can try pay.com.au or yakpay.com.au

I don't have one but my partner does. Are there are any implications with using her ABN?

 

[daft009]

I don't have one but my partner does. Are there are any implications with using her ABN?

i can't say... best check with your accountant or similar

IMO, I feel they use the ABN as more of a security thing but i have NFI

 

[Tiki]

I'm looking at this option for a 2-3 year old small SUV next year. I would be using a USA credit card to get the SUB and paying maybe half in cash. Are used car dealers usually happy to take credit cards? And I do have balance transfers available in the USA as well so I wouldn't be paying interest.