Buying car with 0% card but avoiding 2.5% dealer admin?

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max...
max... Posts: 56 Forumite
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Funding a new car purchase and I would prefer to take advantage of 0% credit cards for two years of which I am eligable therby leaving the cash invested - across a varied portfolio but making around 4% net.

Dealer will cover cost of £5k on card but additional payment of £15k will incur a 2.5% handling fee.

Any suggestions for other means of working this?

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  • bris
    bris Posts: 10,548 Forumite
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    You can try to negotiate it away but the merchant services charge them to process the transaction.


    The cost to them will be about 1% 1.5 at most because as a small business I was 1.5% with Streamline, cant see a large car dealership being that as the more you turn over the less it is.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Do you have the card(s) and sufficient limit(s) already in place, or are you still at the planning stage?
  • System
    System Posts: 178,094 Community Admin
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    Negotiate it away (fully/partially), take the hit or pay with a free method.
  • max...
    max... Posts: 56 Forumite
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    YorkshireBoy wrote: »
    Do you have the card(s) and sufficient limit(s) already in place, or are you still at the planning stage?

    Yes, cards assigned and limit no issue.

    No more scope for negotiation with dealer on fee.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    max... wrote: »
    Yes, cards assigned and limit no issue.

    No more scope for negotiation with dealer on fee.
    If your credit rating and income will stand it, maybe try for a Virgin Money MT card (0% for 32 months for a 1.69% fee). The problem is, though, with savings rates on the way down, will you continue to enjoy 4% on your savings for the duration of the deal?...or at least until you've recovered the 1.69% fee on £15K.

    Or failing that, which other cards do you have?...and any intro BT rates on them?
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