Amex and purchasing a car....

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Reclusive46
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Postby Reclusive46 » Thu Jun 27, 2013 3:40 am

lol makes me laugh, we've got a Amex shop small month in the UK in July, where you spend £10 and get £5 in each participating shop. It makes me laugh how one of my local car dealerships is on there. That's a really big chunk off.
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Jacksnow
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Postby Jacksnow » Thu Jun 27, 2013 2:42 pm

I used to work in the auto-industry there is no hard and fast 5k limit on a car, what happens is a few things

Lenders typically require borrowers to pay for Guaranteed Auto Protection (GAP) insurance in order to offset the risk associated with default when you pay with a credit card.

Most car dealerships accept credit cards and thus it is possible to use a card for a portion or entire purchase. However, dealerships have to pay a fee (usually around 3% sometimes more. Especially with AmEx) once you get past a certain threshold though they take the hit personally out of their commission so if their GMI is 10 to 15%. which is a high GMI, but I like round numbers for examples. they're off free until you cross their limit which in this case sounds like 5k.


So you buy a car for 80,000

GMI 10: He makes 8k. you pay past the 5k on your card that merchant fee comes out of his paycheck.

Sales man make 8k now fees again I like round numbers so 5% for AmEx

80,000 *.05

4k.

He loses half his paycheck right there.

even if it's 3%

He loses 2,400

In their eyes it's simply not worth it to take that kind of a hit.

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FastSRT8
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Postby FastSRT8 » Thu Jun 27, 2013 4:44 pm

True BUT if I walk and don't buy the car then he loses ALL his commission.

I think we all are too nice and agree to the limit. I think next time I will just say ok... don't take the card then you lose the sale. Let's see how he feels then. There will always be one salesman who will take the hit and make the sale.

I can be a real prick and just promptly ask out loud in the dealership if there is any salesman on the floor that is willing to complete my sale hahhahha
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catsartcox
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Postby catsartcox » Thu Jun 27, 2013 7:08 pm

MY mother bought a SHO the other day, since I as in town visiting she asked me to go with her, as she did not want to handle the paper work her self. When it came time to pay she wanted to put 20% down- witch ended up being like 7500 some odd. She handed them her gold-card and they asked nothing of it. This was a ford dealership, so nothing all to special.


I would think that, if it meant a sell, that would do what ever the hell you want.
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Postby ilikeme1 » Thu Jun 27, 2013 7:40 pm

When I bought my 2012 CR-V last year, the Honda dealer said I could charge up to $5000 on Master Card, Visa, or Discover, but Amex had no limit and I could buy the car with it.
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FastSRT8
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Postby FastSRT8 » Thu Jun 27, 2013 7:52 pm

ilikeme1 wrote:When I bought my 2012 CR-V last year, the Honda dealer said I could charge up to $5000 on Master Card, Visa, or Discover, but Amex had no limit and I could buy the car with it.


They were going to allow you to charge the whole car on amex?
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Jacksnow
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Postby Jacksnow » Thu Jun 27, 2013 10:12 pm

With No GAP clause?? that's might kind of them.


And yes I agree we are too nice, especially because they have no issues manipulating us for their benefit. That being said is the hassle of finding a salesman worth it, because if he goes against the dealer rules he may find himself working less hours. So standing up saying " is anyone going to take this." might not work as well as you hope, I wish you the best of luck.



Ford may have their own rules on how they cover things. They're kind of a... entity unto themselves. Ford Credit unlike Hyundai Capital or Ally formerly GMAC. Focuses on Ford to the exclusion of almost everything else. It might be they can afford to ignore the hit and make sure the salesman can get his paycheck. Same with Honda.

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Postby rockyrock » Fri Jun 28, 2013 12:28 am

Jacksnow wrote:With No GAP clause?? that's might kind of them.


And yes I agree we are too nice, especially because they have no issues manipulating us for their benefit. That being said is the hassle of finding a salesman worth it, because if he goes against the dealer rules he may find himself working less hours. So standing up saying " is anyone going to take this." might not work as well as you hope, I wish you the best of luck.


What about using the fleet or corporate sales department? I've been told they don't work on commission. Seems like they should be able to process paperwork.

And I NEVER feel bad about scoring a sweet deal; at the end of the day I know they will only close a deal if it benefits them somehow. I do remember buying a Ford a few years back during the "Employee Pricing" promotion; the salesman told me he only got a $50 commission for each vehicle sold--that was the only time I was pressured to buy a used car from their inventory...
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Jacksnow
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Postby Jacksnow » Fri Jun 28, 2013 12:38 am

Fleet and Corp sales have different clauses in them that make them really unattractive to personal buyers. Maintenance agreements resale etc.


Also there might be a minimum purchase on both of those.


I concur about never feeling bad on a deal, but their incentive plans are complex it's rarely if car is X you collect Y I just threw out a GMI 10 and 15 because I like round numbers to explain things.


IIRC it's percentage above inventory + new or used modifier

If it's new they need to pay the OEM so they get less money if used they pay themselves which means they can give out higher %

If sticker is 10% over Inventory


You talk him down to 5% above inventory and then ask him to take yet another haircut because of the financing rules. he might be a bit less inclined to take you up on it. It's been a while since I dealt with dealers directly my apologies on not having up to date info.

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Postby Grupet » Fri Jun 28, 2013 3:08 pm

I once bought a brand new car on my debit card (about $40K)
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