Amex and purchasing a car....

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FastSRT8
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Amex and purchasing a car....

Postby FastSRT8 » Wed Jun 26, 2013 2:29 am

Okay, I know this has been asked before in other forums but I want to know what people in here feel/know about this from personal experience...

I'm sure most of you like myself have run into the "sorry we can only let you charge $5k" for the purchase of a new car. My question has always been 'why?'

I'm sure it has to do with the fees but is there a rule that says otherwise???

Amex advertises in their package to me that I can buy almost anything (legally LOL) on the card so why the cap?

I am going to try again soon as I am in the market for a new car.... this time I think I won't be as polite. I'll be an @ss. I can give them the take it or leave it and if they say no, I walk.

Any comments or ideas to make it uncomfortable for the salesman would be appreciated. From what I have read on other forums, part of the reason may be the salesman imposing a cap rather than the dealer as the credit card fee comes off their commission.

IF this is the case, then I will demand to speak with the manager and flip him my card. Either way, salesman gets no commission.
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Gamma
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Postby Gamma » Wed Jun 26, 2013 3:28 am

I just recently bought a car last week and when I put a down payment on my Amex, the sales person said they only take up to 5k with credit card else they significantly lower his commission. I was fine with that since I want planning on putting 2.5k down anyways. Then after filling out the paper work and handed loan officer the card, she basically encouraged me to pay with a different card. I asked her if people pay more with Amex than other cards and she replied that they once cancelled taking amex because of the fees but when they noticed lots of potential customers leaving because they couldn't use Amex to pay, they allowed Amex. I would have used Chase but I wanted to give a little something to Amex since all I use them is for 6% groceries.
Have you tried calling Amex and asking them to allow that dealership to purchase the full price vehicle to a Centurion member? :)

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Postby rockyrock » Wed Jun 26, 2013 5:06 am

I just read on the Amex forum that they offer a car buying service and one of the conditions is the dealer accepts a min of $2k on the card. There was no cap but it could easily fall into that $5k limit Gamma was talking about.

Maybe the fees come out of the commission all together so at a certain point they have no incentive...

I’m curious how the dealer would react if you got all the way to the paperwork and walked if they refused to let you pay in full with your card. Are they really going to give up $40k, $50k, $60k, etc.?

Some dealers have an Internet sales department that only gets a flat fee for each of the sales they process. Maybe this is a way to get around it.
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Moneytalks
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Postby Moneytalks » Wed Jun 26, 2013 9:16 am

Use the card, pay his commission on the side in cash ;)
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djrez4
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Postby djrez4 » Wed Jun 26, 2013 9:44 am

I think the $5k cap applies at lower-end dealers only. I had no problem putting a larger amount on a card for my Acura. (I wish I had gone even higher! At 0%, I could have paid it down easily.) I presume other similar (Lexus, BMW) or higher-end brands would do the same.

As for making salespeople uncomfortable:

Test drive a model with a light-colored interior. Ask him to hold the jar of spaghetti sauce you just picked up from Mom's house. Sorry that she's senile and forgot to put a lid on it.

On the test drive, head over to the nearest competing dealer.

Buy a beater off Craigslist. Show up at the luxury brand dealer of your choice in the beater and slap down the Cent immediately.

Bring your dog.

Bring your tiger.
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FastSRT8
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Postby FastSRT8 » Wed Jun 26, 2013 11:13 am

Lol!

I will push to. To put the entire car on the card because I can. Isn't that why the cent card was created?

I'll tell the dealer either I get the car from them or another. Then bs them saying I'll tell all my friends about how much their dealership sucks

Maybe I'll ask Amex concierge to set up a meeting for me with the purpose of buying a car outright.
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MemberSince99
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Postby MemberSince99 » Wed Jun 26, 2013 11:26 am

Another variation on djrez's theme is use a jedi mind trick they use on you. You know, the one where you are at the sales vulture's desk and he/she gets a phone call and starts talking about the car you are looking at, like someone else wants it.

Have a friend call you on the cellphone and pretend to be a car salesperson. Then talk about how oh you can give me the same car I'm looking at here cheaper if I get down there today? How late are you open?

You can have fun with this, just like they do.

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FastSRT8
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Postby FastSRT8 » Wed Jun 26, 2013 1:02 pm

Ahhhh good one.

I'll have to play with these guys.

MemberSince99 wrote:Another variation on djrez's theme is use a jedi mind trick they use on you. You know, the one where you are at the sales vulture's desk and he/she gets a phone call and starts talking about the car you are looking at, like someone else wants it.

Have a friend call you on the cellphone and pretend to be a car salesperson. Then talk about how oh you can give me the same car I'm looking at here cheaper if I get down there today? How late are you open?

You can have fun with this, just like they do.
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Grupet
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Postby Grupet » Wed Jun 26, 2013 2:41 pm

Now I'm getting curious... what car are you looking at?
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Z06Biker
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Postby Z06Biker » Wed Jun 26, 2013 4:46 pm

I'm curious, too.
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