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wanderinghand

"And how will you be funding your car, sir?"

15 posts in this topic

We're fortunate enough that we are almost able to pay cash for the whole amount. We had intended to put the remainder (about £5k) on a credit card with 0% on purchases etc etc.

However when I spoke to the dealer yesterday they claimed that they could only accept £1,000 - possibly £2,000 if we're nice - on credit card. I can't think of any earthly reason why this would be, with the possible exception of them wanting people to use their own credit facilities instead.

Has anyone here managed to put any of theirs onto a credit card and, if you don't mind me asking, how much you were allowed to?

I know there are charges for credit card transactions, but why that should suddenly kick-in and become prohibitive at £2,000 is anyone's guess.

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Credit card transactions can be as much as 2.5% (more normally 1.8%) on retailers that have a small turnover on their account. That could be as much as a couple of hundred quid on a large payment.

If you have already negociated a discount, the producing a card can be a kick in the nads. Just go to the back and take cash from your card, or write a cheque!

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Credit card charges are on a percentage basis, whereas debit are per transaction.

The rates I get are I think pretty good, at 1.21% for credit and 13 pence for debit. On 5 grand that would mean they have to pay £60 in commision. Chances are that their rates are higher than this.

lots of places add a percentage to CC's because of this, eg flights etc.

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I paid £1,000 deposit with official order by Debit Card (I don't use Credit Cards) and the balance on delivery by Bank Draft. Most dealers would make you wait several days for a cheque to clear before releasing the car.

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Pretty much same thing happened to me when paying the deposit. It's as everyone says, down to the card transaction charge.

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I paid 1K with sainsburys card (intro deal meant no interest for 12 months! I could have paid more but didn't ask re their limit.

If u get a loan i used cahoots for 5k over 2 years 5.8%apr.

only 220/m total interest only £300 and v quick and easy to do.

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my dealer allows you to pay the full car cost on debit card and advises you to tell your bank prior to picking up the car to avoid long delays in authorising by the bank.

they also take cc but make it clear from the outset that there is a surcharge, 2.5% or something like that, if you use it

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[ QUOTE ]

Just go to the back and take cash from your card, or write a cheque!

[/ QUOTE ]

be very careful with the 0% interest rules as most CC lenders will charge their standard rate on cash withdrawals or credit card cheques. The 0% usually applies only to balance transfers or straight purchases. some also have small print about balance transfers whereby the interest rate is quoted as 0% but there is a 2% "handling fee" on the amount transferred.

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Thanks for all the advice everyone. Think I'll see what they'll take on a credit card without a charge and then offer to pay the transaction charge on the remainder.

In a way, it's probably a good thing that they restrict the amount you can put on a card, what with ludicrous credit limits being chucked at people who can't really afford the extortionate interest rates (even if they're not doing it for those reasons). But sometimes it's quite useful to take advantage of these 0% offers and put one over the credit card companies once in a while.

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I agree. I spend loads on credit card but never paid interest in 15years! Always pat off in full at end of month.

I have 14.5k outstanding on sainsbury card but most of that cash diverted to mine and wifes ISA etc.

I'll pay off at end and make about £300 interest. Then transfer to Natwest visa for 9/12(no 'handling charge' to Natwest customers, and make more by paying off a lump of mortgage.

Just have to remember to pay the 'minimum amount' each month

or they hammer u.

Someone may as well profit from it....

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Can't see why a dealer would kick off about a 60 quid credit charge on a car that costs £20k+ confused.gif

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[ QUOTE ]

Can't see why a dealer would kick off about a 60 quid credit charge on a car that costs £20k+ confused.gif

[/ QUOTE ]

reckon the sales guy/gal is bothered about the credit charge ?! finance director's shout methinks znaika.gif

IMO you're right, the extra turnover must be worth £60.

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where's the £60 figure come from......

£20,000 - £5000 Deposit = £15,000 Bal

£15,000 x 2.5% Surcharge = £375.....

saying that if you can get £15,000 0% for 1 year your on to a winner,if you can get it for 3-5 years then the £375 is peanuts to what you have saved in interest charges.....

Think of it like a mortgage fee.....£500 cost is nothing to the saving on a five year fixed rate deal .........AS LONG AS YOU HAVE A BIG MORTGAGE/TERM....

If you've got your head screwed on right (which we are)... your on to a winner

And I know we are just by getting a GTI in the first place.......AREN'T WE jump.gifjump.gif

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[ QUOTE ]

my dealer allows you to pay the full car cost on debit card and advises you to tell your bank prior to picking up the car to avoid long delays in authorising by the bank.

they also take cc but make it clear from the outset that there is a surcharge, 2.5% or something like that, if you use it

[/ QUOTE ]

Its how i paid for mine too by debit card.

I was going to pay cash pound notes but the dealer said i could not as its now against Anti Money Laundering Laws for garages to take large sums of cash payment. PMSL. yelrotflmao.gif

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[ QUOTE ]

where's the £60 figure come from......

£20,000 - £5000 Deposit = £15,000 Bal

£15,000 x 2.5% Surcharge = £375.....

[/ QUOTE ]

Just planning to put £4k - £5k on a credit card though - thus smaller transaction charge.

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