Is a car a retail purchase?

dodgyonetwothree

Hi There,
I have never owned a credit card and thought it might be worth buying my new car on one (or as at least maxing it out). I was just worried the "0% on retail purchases" that is offered. It will be bought from a main dealer.
I have the money to pay for the car but i thought leaving it in the bank for a year would be my best option.

Thanks in advance for your advice.

Dodgyonetwothree

P. S. I WILL be cutting up the card straight after the purchase

SalsaDanca

Purchasing a car with your credit card will be treated as a retail purchase.

As you haven't used a credit card before, you may not be aware that the credit card company will charge a 2% fee, so the car dealer will only receive 98% of the price you pay on your credit card. Most shops have increased their prices to pass this fee back to their customers, but garages (and also travel agents) don't do this so they will usually increase their prices by 2% if you pay by credit card.

Ask your garage if they accept credit cards, and if they charge will charge a fee for doing so, before you apply for a card.

Regards,

Rob

YorkshireBoy

SalsaDanca wrote:

...but garages...don't do this so they will usually increase their prices by 2% if you pay by credit card.

...and if they don't, you didn't negotiate hard enough!

sicker

I have just paid £7995 by Egg Money cc for my car and my cash back for this period is £83.29p. The car firm wanted 2.5% for using the card but when I refused they eventually gave in and allowed me the full purchase price. They have good profit margins so don't give in to them. They will not want to loose the sale.

John

p.s. Demand extras such as car mats, if you don't ask you don't get.