Car purchase on AMEX

[JohnM]

I think one message here is that Audi makes super-profits (when you compare Audi prices between Europe and Australia, how can you fail to agree?). When practiucally everything on an Audi is a option (take me back 25 years) :shock:, so must be credit card surcharges :mrgreen:.

I was along as support for PartnerJohnM's 22yo son buying a Ford Fiesta demo. Got the deal agreed and was about to put the $2K deposit on the Amex Qantas Ultimate card when I asked what the surcharge was to put the whole $15.6K on. They said the commission had just gone down from 3% to 2.2%. Marginal. But did it at 1.6%, given the 1.5 points/$ on the Ultimate and the opportunity to turn points into F upgrades.

When I bought my Subaru, $2K was the no-commission deposit limit. Maybe next time if I go Subaru again I'll push harder but my feeling is that Subaru is a pretty tightly controlled dealer situation, unlike Ford or Holden.

 

[Warks]

I bought a used govt vehicle at auction (Manheim Fowles as it was then) a couple of years back and could have paid in full on the card (about $16K) but I baulked at the fee. I think it was around $700 for MC and probably more for AMEX. Still it's an option if you are chasing points. Of course this is non-negotiable.

 

[kkl]

Does this only work if u pay cash via cc ? What if u take a loan?

 

[phantom. dealer]

Very interesting discussion...and some of the replies on who took a card and why are great! Let me give you the mail...if AFTER you have negotiated the best price for a new car and signed up the Dealer STILL accepts your credit card with no commission then you should be worried! He must have made plenty out of you!
Reality is that the industry average cost to Dealerships it around 0.7% - 0.9% merchant fees for Visa or MC (basic) and often 1.25% - 2.0% for so called Premium Visa or Mastercards (read gold, plantimum and alike) and around 2.0 - 2.5% for Amex.
This is a real cost and weather you are surcharged or weather its in the deal you ARE paying for it. Oh and trippin_the_rift.. I hate to burst your bubble but industry net profit per dealership is less than 2% NET profit to sales. Dont belive me? many are owned by Public Companies these days and it there for all to see! And how do I know about the non Pulic Company Dealership industry averages? I own three New Car Dealerships of 3 different brands.

 

[prozac]

.............. And how do I know about the non Pulic Company Dealership industry averages? I own three New Car Dealerships of 3 different brands.

Welcome to FF phantom. You should at least take the opportunity for some free advertising and tell us where we can get a deal.

 

[phantom. dealer]

Welcome to FF phantom. You should at least take the opportunity for some free advertising and tell us where we can get a deal.

Thanks for the welcome Prozac and the publicity oppertunity...but I am here to learn. I thought I was pretty good at manipulating the FF schemes and credit cards but having read some threads you guys (and girls) are red hot

 

[prozac]

I am just a novice phantom.

 

[Masonic Phantom]

Thanks for the welcome Prozac and the publicity oppertunity...but I am here to learn. I thought I was pretty good at manipulating the FF schemes and credit cards but having read some threads you guys (and girls) are red hot

Hi Phantom Dealer
From one Phantom to another, that is high praise indeed & a car dealer at that:shock:
Cheers M.P.

 

[rodbeagl]

About a year ago I put my new Navara on my Qantas Amex Ultimate Credit Card as opposed to my Amex Charge card as I received 1.5 points per dollar - about $50K form memory. Deposit was paid on Amex about 6 months prior when I placed the order and when it came time to pay the balance, the dealer accountant said OK to Amex but I had to pay the charge levied on them by Amex - 1.8%. That gave me around 75000 QF FF points which for me for example was 3 one way trips from here to Singapore clear of the taxes etc. I do the trip often and figured that the $1000 I paid for the privilege was reasonable value. Maybe I could have bargained and got a better rate but I felt that was the dealer limit that day. I will try harder next time. Obviously I was in a position to pay the card balance in full at the end of the month to make the exercise worthwhile.

Cheers

 

[phantom. dealer]

Hi Phantom Dealer
From one Phantom to another, that is high praise indeed & a car dealer at that:shock:
Cheers M.P.

lol Thanks Masonic Phantom. I shall try to keep the "Car Dealer" in me in check and be a good member and learn from you all...and hopefully put back in to as I love to travel and I travel a lot.

 

[Masonic Phantom]

lol Thanks Masonic Phantom. I shall try to keep the "Car Dealer" in me in check and be a good member and learn from you all...and hopefully put back in to as I love to travel and I travel a lot.

Great Stuff.
M.P.

 

[prozac]

phantom, you should at least tell us what brands and what state you are in. Those who are in the market could then make contact by pm. I am not in the market atm.

 

[airbridge]

I work for a motor dealer and I can assure you that dealers have a limited amount of profit in a car so if you "negotiate" no fee on Amex you will get less discount on the car. Dealers will reduce the price and they don't mind what you call it, discount or fee free Amex payment. At the end of the day you are either paying a fee (in which case it is not worth the points you get) OR you get a discount on the car. You won't get both.

My suggestion....take the discount on the price of the car and buy yourself a discounted airline ticket.

 

[mike47]

Just so happens I have negotiated to buy ($32500) a new car on my Amex.....

I had done my homework. I had negotiated a price with discounts etc, and had spoken with customer service at Amex who informed that they cannot provide individual details but... generally 2% was ballpark (the ATO is 1.6%).

The dealer was quite approachable and informed me the surcharge was 3%. I suggested that 2% was a more realistic figure and that he could perhaps start at that point.

Any way we ended up with a surcharge of $375 and two boxes of corona beer.... not too shabby for 48000+ points

 

[11sjw]

Ran a car through my AMEX back in 2005, value of $20k down from $25k list. Negotiated the surcharge fee out as a part of the deal. Not sure if that would happen these days (or how good a deal it was judging by what I've read here!) but it was easy enough then.

 

[hgwells01]

I recently bought a Mercedes on Amex - I negotiated price, then said I wanted to pay on AMEX, got the first 20,000 deposit fee free, then paid in installments with 1.5% credit card fee, was very happy with the deal, and the car.

 

[Walloper]

We bought a card on cards - Visa $8000 no surcharge, Amex $8000 no surcharge (same account), remainder Amex $10000 at 1% surcharge. The points were worth it to me at that cost. Incidentally, the credit card negotiations took longer than the purchase negotiations and it did come down to "no card, no deal". I was, and remain, happy with the deal.

 

[stroudie]

I tried to purchase a Honda Accord Euro on Mastercard a couple of years ago. Alas, no luck. The best I could do was use the card for the deposit, without surcharge.
Stroudie.

 

[Stephen65]

mike47

The merchant fee the ATO pay to Amex is 1.25%. I was talking to an Amex account person the other day to organise preclearance for me to pay a large tax bill and he told me that Amex are pleased about how popular it has become for people to use their card to pay tax.

 

[trblvb]

Negotiated a deal and about to purchase a new car with AMEX card – main reason is for the points.
Should I purchase it on my American Express Platinum Credit Card or American Express Platinum Card?
Is there any difference in the points/benefits etc.?
Note: Car is $34,000. First $2000 no commission remainder at 3%