Paying With Credit Card(s) - Subaru Outback

bsu4phd · 07-31-2010, 02:01 AM

Hello,

Anybody have good or bad experiences paying for all or part of your new Outback with credit card(s), assuming you pay off the whole card balance when it's due.

How much of the car price will dealers let you put on a credit card? Do they complain when you do?

Thanks,
Marc

theeulogy · 07-31-2010, 05:14 AM

I just put a deposit on a new Forester with a credit card, actually it was a debit card. I dont think that they will really care one way or the other.
Are you doing it for reward points?

jeramifrost · 07-31-2010, 06:04 AM

They laughed at me last time i asked to buy a car on a credit card. Oh well. So much for 3% back.

dakboy · 07-31-2010, 07:51 AM

My dealer specifically asked that we not pay by credit card because it wrecks any profit they make on the sale. Remember that the merchant has to pay 3%-5% of the sale to the credit card company for the transaction.

G-Omaha · 07-31-2010, 03:39 PM

Last time I bought a car on a Credit Card was in 1976 (Mazda RX-4 all decked out for $4,000 - best car that I have ever owned). At the time the Mazda dealers were essentially taking almost anything because the market for the Rotary Engines just wasn't very good.

The Interchange Rates (cost to the dealer) is high, especially if you are using any of the "Rewards/World" type of cards as they drastically effects the true dollars a dealer will receive as a result of the sale (I work in the CC industry). So, let's say that the cost of the car was $30k, the dealer would probably have to fork over about $1,500 of the sale price to VISA/MASTER-CARD/ETC and the Bank that issued you the card (Chase/Wells/etc).

I'd recommend using Subaru credit (@ 2.9%) and keeping that $1,500 for yourself by negotiating a lesser price. You need to "watch" the "Bucks Back" CC programs because most of them require that the purchase "revolve" (by that I mean you need to pay interest on that purchase) before they are qualified. Also, the dealer will qualify for a couple of bucks from Subaru Credit for the loan agreement and that makes them Happy Happy.

G-

bikemobile · 07-31-2010, 08:18 PM

I put a $6000 deposit down on my jeep with a chase rewards card. Got the exhaust and the windows tinted with the cash back.

G-Omaha · 07-31-2010, 09:49 PM

Quote:

Originally Posted by bikemobile

I put a $6000 deposit down on my jeep with a chase rewards card. Got the exhaust and the windows tinted with the cash back.

Just saying that you could have probably gotten the same or better deal without the use of the CC. What was the cost of the Jeep purchase and the "exhaust and windows tint"?

G-

bsu4phd · 08-01-2010, 12:30 AM

Thanks for you input!

I'll use the card(s) to earn rebates, not to avoid financing...

I wonder if the dealer would feel differently if I used the Chase Subaru rewards card?

Thanks again,
Marc

dakboy · 08-01-2010, 09:47 AM

Quote:

Originally Posted by bsu4phd

I wonder if the dealer would feel differently if I used the Chase Subaru rewards card?

Most likely not - they still have to pay that percentage to Visa or Mastercard.

geekbruin · 08-01-2010, 03:14 PM

We talked the dealer up to 5k on our Amex. They bitched about it the whole time. (I was not a fan of the stereotypical tactics that they used at the dealer we bought our Outback from, constantly acting like we were robbing them blind.)

They do have to pay I think 3% on Amex purchases which is a bit higher than other major credit cards.

07-31-2010, 02:01 AM	#1 (permalink)
bsu4phd Registered User Join Date: Jun 2010 Posts: 24 Feedback Score: 0 reviews	Paying With Credit Card(s) Hello, Anybody have good or bad experiences paying for all or part of your new Outback with credit card(s), assuming you pay off the whole card balance when it's due. How much of the car price will dealers let you put on a credit card? Do they complain when you do? Thanks, Marc

07-31-2010, 05:14 AM	#2 (permalink)
theeulogy Registered User Join Date: Apr 2010 Car: 2009 G8 GXP Posts: 31 Feedback Score: 0 reviews	I just put a deposit on a new Forester with a credit card, actually it was a debit card. I dont think that they will really care one way or the other. Are you doing it for reward points? __________________

07-31-2010, 07:51 AM	#4 (permalink)
dakboy Registered User Join Date: Jun 2005 Car: '03 OBW LTD Black/Black, '10 2.5i Premium Cypress Green Posts: 2,029 Feedback Score: 0 reviews	My dealer specifically asked that we not pay by credit card because it wrecks any profit they make on the sale. Remember that the merchant has to pay 3%-5% of the sale to the credit card company for the transaction. __________________ '03 OWB LTD Black/Black 2.5 4EAT Alpine CDA-9847/SIR-ALP1 ----------- '10 OB 2.5i Premium Cypress Green CVT

07-31-2010, 08:18 PM	#6 (permalink)
bikemobile Registered User Join Date: Aug 2008 Location: Gunnison, CO Car: 05' OB 2.5i Posts: 1,042 Feedback Score: 0 reviews	I put a $6000 deposit down on my jeep with a chase rewards card. Got the exhaust and the windows tinted with the cash back. __________________ Yeah, mine shakes at idle, they all do that..........right?

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07-31-2010, 06:04 AM	#3 (permalink)
jeramifrost Registered User Join Date: Sep 2008 Location: Henderson Ky Car: 2008 L.L. Beanie Gold Harvest Posts: 373 Feedback Score: 0 reviews	They laughed at me last time i asked to buy a car on a credit card. Oh well. So much for 3% back.

07-31-2010, 03:39 PM	#5 (permalink)
G-Omaha Registered User Join Date: Sep 2009 Location: Omaha, NE Car: 2012 Impreza Sport Ltd 2010 Outback Limited Posts: 591 Feedback Score: 0 reviews	Last time I bought a car on a Credit Card was in 1976 (Mazda RX-4 all decked out for $4,000 - best car that I have ever owned). At the time the Mazda dealers were essentially taking almost anything because the market for the Rotary Engines just wasn't very good. The Interchange Rates (cost to the dealer) is high, especially if you are using any of the "Rewards/World" type of cards as they drastically effects the true dollars a dealer will receive as a result of the sale (I work in the CC industry). So, let's say that the cost of the car was $30k, the dealer would probably have to fork over about $1,500 of the sale price to VISA/MASTER-CARD/ETC and the Bank that issued you the card (Chase/Wells/etc). I'd recommend using Subaru credit (@ 2.9%) and keeping that $1,500 for yourself by negotiating a lesser price. You need to "watch" the "Bucks Back" CC programs because most of them require that the purchase "revolve" (by that I mean you need to pay interest on that purchase) before they are qualified. Also, the dealer will qualify for a couple of bucks from Subaru Credit for the loan agreement and that makes them Happy Happy. G-

08-01-2010, 12:30 AM	#8 (permalink)
bsu4phd Registered User Join Date: Jun 2010 Posts: 24 Feedback Score: 0 reviews	Thanks for you input! I'll use the card(s) to earn rebates, not to avoid financing... I wonder if the dealer would feel differently if I used the Chase Subaru rewards card? Thanks again, Marc

08-01-2010, 03:14 PM	#10 (permalink)
geekbruin Registered User Join Date: Jul 2010 Posts: 7 Feedback Score: 0 reviews	We talked the dealer up to 5k on our Amex. They bitched about it the whole time. (I was not a fan of the stereotypical tactics that they used at the dealer we bought our Outback from, constantly acting like we were robbing them blind.) They do have to pay I think 3% on Amex purchases which is a bit higher than other major credit cards.

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