Pay 1.5% Surcharge to Earn 60k QFF Points worth it?

[samillionaire]

Hi AFFers

Recently enquired if I can use my credit card to purchase a motor vehicle (~58k)

They said its ok but I have to pay 1.5%, no Amex but I have a CitiGold Business

Is it worth it to pay 1.5% to get the points (60k~) potentially to convert to QFF?



Thanks again for your time & advice

 

[N860CR]

If you've negotiated and have the price finalized just hand over the credit card. If they say no, do the walk out 1.5% will disappear pretty quickly

 

[samillionaire]

N860CR thanks for reply, however i have enquired this and even tried to twist their arm. they arent willing to budge.

Given your experience is this valuable?

Looking to book flights MEL-KL in December return with the points. Or is it more worth hanging on to the extra money and book flights outright

 

[N860CR]

Depends on your own situation really. If you're using it to book a return economy flight, then it's not worth it (the $900 will pay for that itself). The 60,000 points could book a one way AUS-SE Asia in J which is of better value.

 

[casanovawa]

I usually try to keep to 1 cent per point or 1% as i am usually sure that i can get at least that value for some sort of future redemption when i eventually make one, although i might actually get a lot more value than 1% it costs me to earn the points if i somehow travel J for example...

If you are in the position where you know fairly well how and when you will use the points then it should be a lot easier to work out what the $ benefit you will receive and so whether paying 1.5% still adds up to a saving for you... In general a cost of 1% will be a lot better if looking at booking Y and it still might not add up, if booking J or upgrading to J then 1.5% will probably add up, this is if you need the points quickly... You could probably get those 60,000 points a lot more cheaply applying for a credit card deal or two or maybe some insurance deals or something, but it will take a lot longer, maybe 6 months plus...

But just do the sums on the MEL-KUL flights and you should be able to work out what scenarios the points are worth paying 1.5% for...

 

[markis10]

If your looking at using points in December, their value might be irrelevant if there is no availability, award flights tend to be scarce at that time of the year. There is also a lot of competition on that route, a cheap flight booked in a brazil with a 3K connection might be a good cost indicator, or the direct options like Air Asia who currently have a sale or MH.

 

[samillionaire]

Thanks markis10 I think I agree with you doesn't seem viable given the taxes and the 1.5 percent out of pocket with the travel periods being limited I'm better off booking flights on my own

 

[AVC]

I bought my MC on the card for a whole stack of points.

I think 1.5% is about the limit though.

But that would be on AMEX, not MC/VISA. I would not pay any surcharge at all on those. And the AMEX MSF would never be more than 1.5% over that of MC/VISA

You need to spend you points wisely however, not go and blow them on return economy or shopping vouchers and the like.

 

[Mal]

I've always found J and F awards to be available around Christmas.... Y is scarce though as the cabin is usually full or yield are holding the seats for last minute high $ bookers.

 

[ozbeachbabe]

If you've negotiated and have the price finalized just hand over the credit card. If they say no, do the walk out 1.5% will disappear pretty quickly

N860CR thanks for reply, however i have enquired this and even tried to twist their arm. they arent willing to budge.

Given your experience is this valuable?

Looking to book flights MEL-KL in December return with the points. Or is it more worth hanging on to the extra money and book flights outright

Can you ring around another couple of dealers who sell the same car & play them off against each other?

I wouldn't waste points redeeming in economy to Asia when their paid fares are affordable as IMHO points are best used for flights in premium cabins for travel that would cost a few thousand dollars if purchased.