Amex and purchasing a car....

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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FastSRT8
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Postby FastSRT8 » Fri Jun 28, 2013 3:38 pm

Do debit cards charge the mechant fees?



Grupet wrote:I once bought a brand new car on my debit card (about $40K)
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Postby Grupet » Fri Jun 28, 2013 3:56 pm

I should probably have put in there, that it was when I was living overseas
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Postby Reclusive46 » Fri Jun 28, 2013 4:29 pm

FastSRT8 wrote:Do debit cards charge the mechant fees?


NOT if its a pin based transaction but everywhere else in the world, a debit card will just charge the merchant a set fee, normally around 20p (30 cents), all of the time. Non of this credit or debit rubbish lol
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Postby Jacksnow » Fri Jun 28, 2013 6:26 pm

From what I remember debit cards function differently because the money is available to them right there. From your bank account to theirs. No intermediary so a dealer might be more likely to take that deal. Also debit systems usually just charge a flat fee to subscribe rather then percentage like AmEx/VISA/MasterCard do. Again lucrative for them convenient for you.

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Z06Biker
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Postby Z06Biker » Fri Jun 28, 2013 7:21 pm

Jacksnow wrote:You talk him down to 5% above inventory and then ask him to take yet another haircut because of the financing rules...


Jacksnow, is "inventory" the same as what's known as "bottom line?" I've also been told from friends who used to be internet sales managers for Bimmer and Lexus that even after you hit bottom line, dealers still have "hold back," which I assumed was a profit they *baked in* before setting bottom line?

All that said, most people aren't even able to get dealers to get down to bottom line.
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FastSRT8
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Postby FastSRT8 » Fri Jun 28, 2013 7:24 pm

I hate car salesmen the most. I stay far away from them as possible. Don't like how they wheel and deal. Feel so dirty after dealing with them.


Z06Biker wrote:Jacksnow, is "inventory" the same as what's known as "bottom line?" I've also been told from friends who used to be internet sales managers for Bimmer and Lexus that even after you hit bottom line, dealers still have "hold back," which I assumed was a profit they *baked in* before setting bottom line?

All that said, most people aren't even able to get dealers to get down to bottom line.
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Postby Jacksnow » Sat Jun 29, 2013 6:54 pm

Inventory isn't bottom line, bottom line is the minimum they set to make a profit, inventory is what they paid the OEM for the car.

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Postby flan » Sat Jun 29, 2013 9:42 pm

Z06Biker wrote:Jacksnow, is "inventory" the same as what's known as "bottom line?" I've also been told from friends who used to be internet sales managers for Bimmer and Lexus that even after you hit bottom line, dealers still have "hold back," which I assumed was a profit they *baked in* before setting bottom line?

All that said, most people aren't even able to get dealers to get down to bottom line.


There are all sorts of games dealers play. One is that they get various incentives from the manufacturer. "Hold back" is just one of them. (Basically, hold back works like this: The dealer pays for the car when they get it, paying the invoice price. Some time later, usually quarterly, the manufacture gives the dealer a rebate, of 1-3% of the invoice price. ) There are other allowances, including volume allowances (bigger dealers pay less...), advertising allowances, floor model allowances, inventory financing allowances, and more.

It's a scummy business, and its basic model is "don't let anyone know anything", which is how you get them to pay more.

If the dealer won't let you pay for the car, take it up with AMEX. The merchant agreement I used to have didn't let me say "we won't take cards over X"; I suspect that's true for the dealerships as well.

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Postby rohnin » Sun Jun 30, 2013 2:30 am

How about leasing? Are monthly payments on those chargeable on a card? Including the initial down payment??

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Postby MemberSince99 » Sun Jun 30, 2013 6:28 am

FastSRT8 wrote:I hate car salesmen the most. I stay far away from them as possible. Don't like how they wheel and deal. Feel so dirty after dealing with them.


I know, I get a bad vibe around a lot of them (not all but a lot that I've come into contact with). The more slimy ones ooze fake warmth while trying to play games with you. But I see through that. Just be upfront with me and I'll do the same with you - you'll get the sale if you are forthright probably for more than you're thinking, but try to screw with me and I'll walk. I understand you have to make a profit and I don't have a problem with that - I want you to be around after the sale for service and to purchase my next vehicle from. But lie to me or play games and I will call you on it if you push, and if you jack me around, no deal. You don't have to kiss my butt, I don't want you to, and I won't kiss yours, let's do business like adults.

Why is that so hard I wonder?



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