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This man bought a $45,000 car on his credit card — should you?

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There is no way this would ever work out for the best deal on a car. Any smart high volume dealer (IE the only ones tha... (more)

fourchar (Sep. 16, 2017 @ 2:18p) |

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Argyll (Sep. 17, 2017 @ 7:36a) |

That makes sense and I almost did that for a new account bonus, but I got greedy and got shut down by Square for referri... (more)

meade18 (Sep. 18, 2017 @ 9:31a) |

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Once put $20k deposit on my GM Credit Card (on a $24k truck). Since it was being built and would take 6 weeks, it was enough time to get the 5% cash back processed and save another $1,000 on the truck (on top of my employee discount at the time).

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Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.

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Good idea, poor execution. By simply using a 2% card he would have netted $900. Would be better to use a mix of cards to grab more valuable signup bonuses (ie SW Chase cards) and then use the 2% for the rest. If you have the cash on hand thought, I'm more about getting 0% financing (or do the 0% BT option if paying with cards) and let the cash sit in a rewards checking account earning around 3.5% while paying the loan. That income will be taxed so overall value is diminished, but still a better return compared to this guy.

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Is this really worthy of a thread, let alone a shitty one (with simply a link)? This isn't something new, or astounding, or crazy, or whatever. This is simply a guy trying to get 45k united points with a lot of hassle and potential cost. I'd have much rather MSed the 45k points (or gotten a signup bonus) than done all of this and forwent 0% financing. Pretty stupid way to get just 45k united points, IMO. Cost of MS probably would have been lower too, because I'm sure he could have negotiated a bit more off the van if he didn't want to pay with a card. Literally one of the worst ways to come up with 45k points. Not sure why I am so butthurt over this, but I just don't understand the point of doing what the guy did, let alone posting this as a one-liner link on FWF.

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jaytrader said:   Is this really worthy of a thread, let alone a shitty one (with simply a link)? This isn't something new, or astounding, or crazy, or whatever. This is simply a guy trying to get 45k united points with a lot of hassle and potential cost. I'd have much rather MSed the 45k points (or gotten a signup bonus) than done all of this and forwent 0% financing. Pretty stupid way to get just 45k united points, IMO. Cost of MS probably would have been lower too, because I'm sure he could have negotiated a bit more off the van if he didn't want to pay with a card. Literally one of the worst ways to come up with 45k points. Not sure why I am so butthurt over this, but I just don't understand the point of doing what the guy did, let alone posting this as a one-liner link on FWF.
  Probably not?  In any case, it's an interesting topic.  I'm hoping to gain a few nuggets from FWFers and expect to see some ideas I would not have thought about to maximize ROI and possibly apply to other purchases and scenarios.  And of course I'm here for the Crown Vic comments.

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An interesting topic is putting a large purchase on a credit card to get airline miles? I feel like that horse has been beaten to death, especially every year around March-April.

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Been there done that. Purchased my last car new at a dealership for 31k. Used a 1% debit card. The dealership had no problem taking a debit card for the full amount.

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DTASFAB said:   Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.
  
Vehicles are excluded from every card I know about.
 

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donotdrinkPBR said:   Good idea, poor execution. By simply using a 2% card he would have netted $900. Would be better to use a mix of cards to grab more valuable signup bonuses (ie SW Chase cards) and then use the 2% for the rest. If you have the cash on hand thought, I'm more about getting 0% financing (or do the 0% BT option if paying with cards) and let the cash sit in a rewards checking account earning around 3.5% while paying the loan. That income will be taxed so overall value is diminished, but still a better return compared to this guy.
 I'm thinking a dealer might balk at someone pulling out a half dozen+ different credit cards to split the purchase across.  It's pretty rare they let you charge the full purchase as it is.

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Good luck in finding a dealership that will let you do this, unless you are paying MSRP like the guy in the story. Looks like he bought a 2018 Odyssey Touring, which has an MSRP of $45K but invoice is about $40K. And I hope he didn't get an EXL NR which has an MSRP of 40K (35K invoice) and got dealer added options like window etching, rust protection, nitro fill or even worse, alarm system.

On top of it, guy was going to Disney? Even the Disney Visa Rewards Premier would have given him 2% instead of the 1.5% he got and six months zero interest financing, giving him more time to come up with the money to pay the card...

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I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.

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ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  No, we need local car dealers to protect you.

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DTASFAB said:   Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.
  Credit cards usually say no to extending the  vehicle warranty.

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ZenNUTS said:   
ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  No, we need local car dealers to protect you.

  
Good one!

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ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  
For most cars, you can get it delivered on a flatbed today.  Just pay MSRP, and most dealers will be happy to bring the car to you. 

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You know, I just realized, it doesn't say how much he paid for the Car. So lets assume he paid Retail and got $650 back in points. Dummy.

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cestmoi123 said:   
ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  
For most cars, you can get it delivered on a flatbed today.  Just pay MSRP, and most dealers will be happy to bring the car to you. 

  
Let me clarify, I want to order a crap free car exactly to my specification direct from the manufacturer, and not pay a penny to the dealer who adds nothing useful to me to the process. At the price the dealer pays. I don't mind if it takes a few months to be delivered, I'm not one of those people who turn up at the dealer and says "sell me something off your lot this afternoon". What I really want is a German taxicab, a stripper E-class, all the good stuff with none of the crap, but I currently can't order one... no I don't that one off the lot with the interior perfume dispenser and shoe rack thankyouverymuch

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ganda said:   
cestmoi123 said:   
ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  
For most cars, you can get it delivered on a flatbed today.  Just pay MSRP, and most dealers will be happy to bring the car to you. 

  
Let me clarify, I want to order a crap free car exactly to my specification direct from the manufacturer, and not pay a penny to the dealer who adds nothing useful to me to the process. At the price the dealer pays. I don't mind if it takes a few months to be delivered, I'm not one of those people who turn up at the dealer and says "sell me something off your lot this afternoon". What I really want is a German taxicab, a stripper E-class, all the good stuff with none of the crap, but I currently can't order one... no I don't that one off the lot with the interior perfume dispenser and shoe rack thankyouverymuch

  That's the Tesla model.  
And they got sued by dealerships for trying to cut them out.

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ganda said:   
cestmoi123 said:   
ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  
For most cars, you can get it delivered on a flatbed today.  Just pay MSRP, and most dealers will be happy to bring the car to you. 

  
Let me clarify, I want to order a crap free car exactly to my specification direct from the manufacturer, and not pay a penny to the dealer who adds nothing useful to me to the process. At the price the dealer pays. 

  well thats the problem right, you want to pay wholesale for a retail transaction

forget cars. Whenever I buy consumer goods straight from the manufacturer website, I've found the prices to be same or higher than when buying from retailer

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It pays to purchase on CC with certain cards. The Mercedes Benz Amex pay 5x MR per dollar spent at dealerships, combined with the 2c/MR benefit on the platinum business, nets to 10% back on the car purchase. The challenge is to convince the dealership to accept it with no additional fee. It is doable. If you stack this with a demo vehicle and the $1000 off silver star certificate, you can get a healthy discount on a new MB. Whether you get better value than a used Crown Vic is questionable.

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novocane said:   It pays to purchase on CC with certain cards. The Mercedes Benz Amex pay 5x MR per dollar spent at dealerships, combined with the 2c/MR benefit on the platinum business, nets to 10% back on the car purchase. The challenge is to convince the dealership to accept it with no additional fee. It is doable. If you stack this with a demo vehicle and the $1000 off silver star certificate, you can get a healthy discount on a new MB. 
  but then you can't finance a $40-60k car

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rufflesinc said:   
novocane said:   It pays to purchase on CC with certain cards. The Mercedes Benz Amex pay 5x MR per dollar spent at dealerships, combined with the 2c/MR benefit on the platinum business, nets to 10% back on the car purchase. The challenge is to convince the dealership to accept it with no additional fee. It is doable. If you stack this with a demo vehicle and the $1000 off silver star certificate, you can get a healthy discount on a new MB. 
  but then you can't finance a $40-60k car

  Get a pre approval from Lightstream or Penfed first?

Though I believe PenFed must be made out to the dealer, not yourself.

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donotdrinkPBR said:   Good idea, poor execution. By simply using a 2% card he would have netted $900. Would be better to use a mix of cards to grab more valuable signup bonuses (ie SW Chase cards) and then use the 2% for the rest. If you have the cash on hand thought, I'm more about getting 0% financing (or do the 0% BT option if paying with cards) and let the cash sit in a rewards checking account earning around 3.5% while paying the loan. That income will be taxed so overall value is diminished, but still a better return compared to this guy.Not to mention he bought a brand new car (2018 model too) AND extended warranty. What a doofus.

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ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  You can do that right now with half the cars on Craigslist, plus get a 10 day money back guaranty.

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atikovi said:   
ganda said:   I look forward to the day we can just order cars direct from the manufacturer's website, pay online, and wait for it to be delivered on a flatbed.
  You can do that right now with half the cars on Craigslist, plus get a 10 day money back guaranty.

  
I like my cars guarantyed not to have a couple of years of stranger's swamp ass soaked into the seats. YMMV.

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Is your swamp ass any better than a strangers?

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Probably worse, but at least it's my swamp ass.

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TLDR- Moron spent $45K on a minivan, paid via credit card without researching if he could get a car loan to pay it off, opened other CC's and paid probably 3% ($1350) for 0% BT's all for about $675 worth of United points.

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doveroftke said:   DTASFAB said:   Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.
  
Vehicles are excluded from every card I know about.
 


From the United mileage explorer card terms, cars are not listed in the exclusions.

Purchase Protection

Extended warranty. Doubles manufacturer’s warranty up to one additional year on warranties of 3 years or less. Boats, software, medical equipment, business equipment, real estate items, and used items are not covered. Gifts are covered. You must keep your receipt and the warranty on file.

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forbin4040 said:   
rufflesinc said:   
novocane said:   It pays to purchase on CC with certain cards. The Mercedes Benz Amex pay 5x MR per dollar spent at dealerships, combined with the 2c/MR benefit on the platinum business, nets to 10% back on the car purchase. The challenge is to convince the dealership to accept it with no additional fee. It is doable. If you stack this with a demo vehicle and the $1000 off silver star certificate, you can get a healthy discount on a new MB. 
  but then you can't finance a $40-60k car

  Get a pre approval from Lightstream or Penfed first?

Though I believe PenFed must be made out to the dealer, not yourself.

  
Penfed would treat it as a refinance and in this case you would have a clear title (card debt is unsecured).  So they would be in essence buying it from you to sell it back financed.  So yes, they would make the check out to you as the "seller."  

Your pre-approval would not work though, because the terms are that you are buying it from a licensed dealer.  It would just be a collateralized loan or refinance.  

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imbatman said:   
doveroftke said:   
DTASFAB said:   Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.
  
Vehicles are excluded from every card I know about.


From the United mileage explorer card terms, cars are not listed in the exclusions.

Purchase Protection

Extended warranty. Doubles manufacturer’s warranty up to one additional year on warranties of 3 years or less. Boats, software, medical equipment, business equipment, real estate items, and used items are not covered. Gifts are covered. You must keep your receipt and the warranty on file.

in a couple years, they will have updated that to include cars  

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jliehr said:   TLDR- Moron spent $45K on a minivan, paid via credit card without researching if he could get a car loan to pay it off, opened other CC's and paid probably 3% ($1350) for 0% BT's all for about $675 worth of United points.
  I think what's scary is that marketwatch found this guy to be ingenious.

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imbatman said:   
doveroftke said:   
DTASFAB said:   Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.
  
Vehicles are excluded from every card I know about.


From the United mileage explorer card terms, cars are not listed in the exclusions.

Purchase Protection

Extended warranty. Doubles manufacturer’s warranty up to one additional year on warranties of 3 years or less. Boats, software, medical equipment, business equipment, real estate items, and used items are not covered. Gifts are covered. You must keep your receipt and the warranty on file.

  
Yes they are. From the Chase United Mileage Explorer Guide to Benefits (https://www.chasebenefits.com/unitedVW4): What items are not covered? Boats, automobiles, aircraft, and any other motorized vehicles and their motors, equipment, or accessories, including trailers and other items that can be towed by or attached to any motorized vehicle.

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Rubl said:   
jliehr said:   TLDR- Moron spent $45K on a minivan, paid via credit card without researching if he could get a car loan to pay it off, opened other CC's and paid probably 3% ($1350) for 0% BT's all for about $675 worth of United points.
  I think what's scary is that marketwatch found this guy to be ingenious.

  Wow, failed execution on so many terms. Not only did he not get the extra .5% that he could have by using a Citi DC card, he also didn't have enough cash to cover the balance to pay off the credit card and had to scramble to open 3 new 0% cards to pay off the balance (likely at a 3% fee, as noted). I'm also willing to bet the dealer price jacked him to cover their cost of the credit transaction fees, so he paid more for the car than he normally should have. Final fail is buying a $45k new model minivan rather than an older used one that's already taken a depreciation hit. Let's be real here, if you are buying a minivan and have kids it's likely to get trashed pretty quickly anyways -- and why buy a minivan if you don't have kids to tote (I own a minivan but I bought a 6 year old one).

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Rubl said:   
jliehr said:   TLDR- Moron spent $45K on a minivan, paid via credit card without researching if he could get a car loan to pay it off, opened other CC's and paid probably 3% ($1350) for 0% BT's all for about $675 worth of United points.
  I think what's scary is that marketwatch found this guy to be ingenious.

  Finally, someone understanding where I'm at with this.

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doveroftke said:   
imbatman said:   
doveroftke said:   
DTASFAB said:   Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.
  
Vehicles are excluded from every card I know about.


From the United mileage explorer card terms, cars are not listed in the exclusions.

Purchase Protection

Extended warranty. Doubles manufacturer’s warranty up to one additional year on warranties of 3 years or less. Boats, software, medical equipment, business equipment, real estate items, and used items are not covered. Gifts are covered. You must keep your receipt and the warranty on file.

  
Yes they are. From the Chase United Mileage Explorer Guide to Benefits (https://www.chasebenefits.com/unitedVW4 ): What items are not covered? Boats, automobiles, aircraft, and any other motorized vehicles and their motors, equipment, or accessories, including trailers and other items that can be towed by or attached to any motorized vehicle.

  lol, chase is dumb for posting two different sets of benefits. I copied and pasted last night from what I found.

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Doesn't matter anyway since the dope in the article bought an extended warranty from the dealer.

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imbatman said:   
doveroftke said:   
DTASFAB said:   Hmmmmmmm sounds like if the entire purchase is made with a card that offers extended warranty, it might be applicable to a vehicle..... read your credit card's fine print. Some cards might extend the 3-year/36,000 mile bumper to bumper warranty for a 4th year. Not sure how mileage limit would be affected, but I guess that depends on the card terms.
  
Vehicles are excluded from every card I know about.


From the United mileage explorer card terms, cars are not listed in the exclusions.

Purchase Protection

Extended warranty. Doubles manufacturer’s warranty up to one additional year on warranties of 3 years or less. Boats, software, medical equipment, business equipment, real estate items, and used items are not covered. Gifts are covered. You must keep your receipt and the warranty on file.

  Yes it is excluded

What items are not covered? • Boats, automobiles, aircraft, and any other motorized vehicles and their motors, equipment, or accessories, including trailers and other items that can be towed by or attached to any motorized vehicle.
https://cdn.f9client.com/api3/file/1130136/inline/UMP_Explorer_S...

I got this from the United Mileage Explorer card Page 6

Skipping 21 Messages...
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ntr91 said:   
meade18 said:   
Dus10 said:   
xboxhaxorz said:   
donotdrinkPBR said:   Good idea, poor execution. By simply using a 2% card he would have netted $900. Would be better to use a mix of cards to grab more valuable signup bonuses (ie SW Chase cards) and then use the 2% for the rest. If you have the cash on hand thought, I'm more about getting 0% financing (or do the 0% BT option if paying with cards) and let the cash sit in a rewards checking account earning around 3.5% while paying the loan. That income will be taxed so overall value is diminished, but still a better return compared to this guy.
  The only rewards checking that offer these high amounts have many requirements to get that amount, i have $20k in a high yield account and then i put the rest in a high yield savings because the checking requires a minimum of 12 transactions via their debit card, i thought about doing a 0% BT but making 24 debit transactions will be difficult enough

  HD is doing the 11% rebate with a minimum of $1 back... go buy 24 bricks in self-checkout, individually.  I honestly don't understand how folks cannot do these minimal requirements.  I mean, do you live under a bridge and eat only what you find?  Or do you have enough of these situations that it is 24 debits each times 50 cards?  I mean, even if you're living frugally, you could buy a can of beans at the grocery store as one transaction.

  
It's a big enough pain in the neck to change my buying habits to do 10 debit card transactions ONCE in order get a bank sign up bonus. I would hate to have to keep track of 10 debit card transactions EVERY MONTH. I have no desire to spend the time it requires to buy 10 things in with 10 separate transactions in one visit to a retail store on a monthly basis.

  Square Cash.  10 $1 transactions from me to me every month.  Don't even need to leave my basement.

  
That makes sense and I almost did that for a new account bonus, but I got greedy and got shut down by Square for referring myself a bunch of times for their referral bonuses. Made about $60 before getting shut down though.

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