Paying with Cash
#31
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Join Date: Jan 2004
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I paid with checks and I didnt think there were any real advantage or disadvantage to it. ( But when I was dealing with them, I didnt tell him that I will pay with checks even though he asked)
But the cashier was trying to push me to go through with LFS and offered me low 6 APR.
But the cashier was trying to push me to go through with LFS and offered me low 6 APR.
#32
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Originally Posted by TimboIS
I called my cc company. If they're an authorized visa/amex/mc merchant they can't enforce an amount restriction (aside for your own credit rating) according to the cc company. If they do, then they are in violations of their cc merchant agreement. It's no different than going into a high end jewelry store to buy a $40K Rolex, etc.
Not only dealerships, but many body shops at least here in the Seattle area will only allow you to charge $500-$2000 for body work on a car. Rest needs to be check or cash.
Cheers,
Kermee
#33
Lexus Champion
CC companies do not have limitations on the maximum amount merchant can take. Yes they are in violation when they demand you show your ID and when they have minimums and when they have add'l fees.
They also have a rule where you are not allowed to make partial transactions, meaning for a $1000 item you can't put $200 on one card, $700 on another, and $100 on the Amex. If the car cost $45k, you can't charge $9k to the card. But what you can do it make a DEPOSIT using your credit card. So the $9k becomes a deposit and you owe the bank $9k cash...not a title. So dealership has a maximum deposit rule which is ok.
The difference with purchasing a $40k car for $40k and a $40k rolex is the car requires a title. When you purchase a car, somebody holds the title or there is a lien on the title. If you charged $40k to a credit card, would the bank hold the title until you repaid them $40k? No, because you and the cc company have a different agreement. If you buy a $40k rolex, there is no title, the cc company doesn't place a lien on the goods...all you owe them is the money. They can't recover the rolex if you don't pay.
For a credit card transaction, the purchase agreement is your signature on the receipt and the terms you agreed to for card usage. For a car, the terms are spelled out in the retail installment contract or the purchase contract. For any credit card purchase, the transaction is completed at the time of the transaction (unless it's a deposit or a hold). If any performance has to come after the transaction, there is no contract unless it can be executed at an agreed upon future date.
Or something like that...I'm not a lawyer.
They also have a rule where you are not allowed to make partial transactions, meaning for a $1000 item you can't put $200 on one card, $700 on another, and $100 on the Amex. If the car cost $45k, you can't charge $9k to the card. But what you can do it make a DEPOSIT using your credit card. So the $9k becomes a deposit and you owe the bank $9k cash...not a title. So dealership has a maximum deposit rule which is ok.
The difference with purchasing a $40k car for $40k and a $40k rolex is the car requires a title. When you purchase a car, somebody holds the title or there is a lien on the title. If you charged $40k to a credit card, would the bank hold the title until you repaid them $40k? No, because you and the cc company have a different agreement. If you buy a $40k rolex, there is no title, the cc company doesn't place a lien on the goods...all you owe them is the money. They can't recover the rolex if you don't pay.
For a credit card transaction, the purchase agreement is your signature on the receipt and the terms you agreed to for card usage. For a car, the terms are spelled out in the retail installment contract or the purchase contract. For any credit card purchase, the transaction is completed at the time of the transaction (unless it's a deposit or a hold). If any performance has to come after the transaction, there is no contract unless it can be executed at an agreed upon future date.
Or something like that...I'm not a lawyer.
#34
Lexus Test Driver
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Is this a California resident law only and only for new cars? Last year I bought a used car from a dealership in California and had them ship the car to me here in Hawaii. Total I put $8,500 on a credit card. They had no problem and I got the car within a couple of weeks after purchase.
#35
Lexus Connoisseur
Originally Posted by CK6Speed
Last year I bought a used car from a dealership in California
#36
Lexus Test Driver
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Originally Posted by flipside909
Bingo...you answered your own question.
One way around that though is when those credit card companies give you those convenient checks with low rates locked in. Often I get rates like 0% until the balance is paid. I always wondered if I wrote myself a check for "Cash" I could buy a car with a really good interest rate
#37
Super Moderator
Originally Posted by CK6Speed
One way around that though is when those credit card companies give you those convenient checks with low rates locked in. Often I get rates like 0% until the balance is paid. I always wondered if I wrote myself a check for "Cash" I could buy a car with a really good interest rate
#38
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Originally Posted by PeteV
If paying with cash for a new IS, what is the best way to do that, both from a logistic, and a "best deal" point of view?
Should I walk into the dealership with $40,000 in cash - or pay with a check (maybe by showing them my online bank account, with the money to cover it)? Or maybe negotiating what the price will be, and then going to the bank to get a cashiers check for that amount, and come back to buy the car?
Is there any real advantage to the dealers that would make them want to give me a better deal?
Should I walk into the dealership with $40,000 in cash - or pay with a check (maybe by showing them my online bank account, with the money to cover it)? Or maybe negotiating what the price will be, and then going to the bank to get a cashiers check for that amount, and come back to buy the car?
Is there any real advantage to the dealers that would make them want to give me a better deal?
#39
Lexus Test Driver
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Originally Posted by CK6Speed
That does makes sense though. I figure with a finance the loan company holds the title as collateral in case you default on payments. If you pay in full with a credit card the credit card company doesn't have your car as collateral. I guess they could sick the creditors on you, but they really can't repossess the car.
One way around that though is when those credit card companies give you those convenient checks with low rates locked in. Often I get rates like 0% until the balance is paid. I always wondered if I wrote myself a check for "Cash" I could buy a car with a really good interest rate
One way around that though is when those credit card companies give you those convenient checks with low rates locked in. Often I get rates like 0% until the balance is paid. I always wondered if I wrote myself a check for "Cash" I could buy a car with a really good interest rate
Those balance transfer checks would like any regular checks, and best of all it won't be considered cash advance. Just write a check to yourself, not Cash, and drop it in the bank. Even with the transfer fee (max $75) you will still be ahead of all the interest you won't be paying. The way to take out a loan would be by CC 0%... That's how I will be financing my next car.
Last edited by ntran18; 01-04-06 at 01:11 AM.
#40
Originally Posted by ntran18
Your ability to use your CC has more to do with the dealer than the CC company. I don't believe that the CC companies would really care what you pay for or how many of it, provided you stay below your limit. The merchant (dealer) doesn't report what you bought. Just because there is a $40K charge doesn't mean it was a car, could be engines, rims, etc. If you can't pay your bills they will just take you to court and liquidate your assets to pay it off (ie car, furniture), like when they reposses your car to sell when you default. It's the dealers that don't want to pay for the CC transaction fees that eat into their profits, 3 - 5%. The most I ever paid a dealer with CC was $10K and that was 6K & 4K across 2 cards.
Those balance transfer checks would like any regular checks, and best of all it considered cash advance. Just write a check to yourself, not Cash, and drop it in the bank. Even with the transfer fee (max $75) you will still be ahead of all the interest you won't be paying. The way to take out a loan would be by CC 0%... That's how I will be financing my next car.
Those balance transfer checks would like any regular checks, and best of all it considered cash advance. Just write a check to yourself, not Cash, and drop it in the bank. Even with the transfer fee (max $75) you will still be ahead of all the interest you won't be paying. The way to take out a loan would be by CC 0%... That's how I will be financing my next car.
I'm actually surprised so many companies take credit card. I've never owned a business, but it has to hurt your profits. I get extra cash back on my card for "everyday purchases", meaning grocery stores, drug stores, etc., so I often charge amounts less than $10, which I would normally pay in cash, but I'd rather get the cashback so I use my card. But this has to be really bad for these companies that are now having 3-5% fees tacked on to their sales. Getting back on topic - it doesn't make sense for a dealer to take a hit like that.
Someone at work told me that it is actually illegal for a dealership to make you a different offer for the car based on your financing choice. It makes sense, because it's kind of like a broker saying, I want to sell you this house, and if you get your mortgage from my brother, I will cut you a discount. It's an anti-competitive practice. My old boss bought a Nissan Murano dirt cheap by calling around, getting a price based on a lease or loan, and then saying, you have to give me this price even though I am not financing through you, if you don't I will notify the state department of finance.
#41
I'm just curious why anyone would want to pay for a car in cash????? If you have $40k in cash, you're better off putting $0 down and financing at a good 5% rate then investing your $40k in cash. If you invest wisely the profits you make the from investing will far outweigh any interest you think you may have saved. Cars are a depreciating asset....why would you throw $$$ at them???? I always lease with no money down and invest my cash. Bottom line is when you pay cash for a car you lose $$$.
#42
Lexus Champion
Originally Posted by ntran18
Your ability to use your CC has more to do with the dealer than the CC company. I don't believe that the CC companies would really care what you pay for or how many of it, provided you stay below your limit. The merchant (dealer) doesn't report what you bought. Just because there is a $40K charge doesn't mean it was a car, could be engines, rims, etc. If you can't pay your bills they will just take you to court and liquidate your assets to pay it off (ie car, furniture), like when they reposses your car to sell when you default. It's the dealers that don't want to pay for the CC transaction fees that eat into their profits, 3 - 5%. The most I ever paid a dealer with CC was $10K and that was 6K & 4K across 2 cards.
Those balance transfer checks would like any regular checks, and best of all it considered cash advance. Just write a check to yourself, not Cash, and drop it in the bank. Even with the transfer fee (max $75) you will still be ahead of all the interest you won't be paying. The way to take out a loan would be by CC 0%... That's how I will be financing my next car.
Those balance transfer checks would like any regular checks, and best of all it considered cash advance. Just write a check to yourself, not Cash, and drop it in the bank. Even with the transfer fee (max $75) you will still be ahead of all the interest you won't be paying. The way to take out a loan would be by CC 0%... That's how I will be financing my next car.
#43
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Originally Posted by Low J.
I'm just curious why anyone would want to pay for a car in cash????? If you have $40k in cash, you're better off putting $0 down and financing at a good 5% rate then investing your $40k in cash. If you invest wisely the profits you make the from investing will far outweigh any interest you think you may have saved. Cars are a depreciating asset....why would you throw $$$ at them???? I always lease with no money down and invest my cash. Bottom line is when you pay cash for a car you lose $$$.
1) some people they have so much money they don't really care
2) that's if you have for sure some good investment with more than 5% return gauranteed
#44
Lexus Test Driver
iTrader: (27)
Originally Posted by kensteele
I gotta say, if you charge a whole car to your credit card via convenience checks...somehow that's not right, it's bad bad news. Not only do you contribute to the massive amount of credit card debt this country is in, but aslo it can't be good for you personally. Check into the difference between secured and unsecured debt and then you may want to reconsider determining if you can actually afford the car. Anyone can gather enough credit cards and pay for a car but that doesn't mean they can't afford. Buying a car that you cannot afford is bad...always.
I would use cash the same as I and others mentioned with the CC financing. Negotiate the best deal then tell them you have your own financing/cash, BUT you would be willing to finance with them provided they sweeten the deal AND no pre-payment penalty. If they do pay in full when the first payment is due. If not, then wip out your cash/check and be done with it.
#45
Lexus Test Driver
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Originally Posted by kensteele
I gotta say, if you charge a whole car to your credit card via convenience checks...somehow that's not right, it's bad bad news. Not only do you contribute to the massive amount of credit card debt this country is in, but aslo it can't be good for you personally. Check into the difference between secured and unsecured debt and then you may want to reconsider determining if you can actually afford the car. Anyone can gather enough credit cards and pay for a car but that doesn't mean they can't afford. Buying a car that you cannot afford is bad...always.
The other reason why I think this talk all started was the debate between paying in cash or financing and which would give you a better deal and if paying cash was worth it or not.