0% Card Credit Limits, amount on average or how to find out

[Deleted User]

Ebe_Scrooge said:

Deleted_User said:

Ebe_Scrooge said:

menaistrait said:

I'm looking at KIa Approved and assumed they would take card as they are approved dealers..... I assumed they didn't have to charge more as they get their money and my debt is left with the CC provider?

Most dealers will refuse to take a card for the full amount (you may find the odd one who will).  The problem is, any time you use a credit card, the vendor gets charged a fee by the credit card company - it's a percentage of the transaction value.  This is actually how card companies make the majority of their income.  Every time you buy your shopping at the supermarket using a credit card, for instance, the supermarket pays a fee to the card issuer.

With a high-value item like a car, the fee the vendor gets charged is not insignificant (as it's a percentage of the transaction value).  In the olden days, most dealers would pass the fee on to the customer, but they're not allowed to do that now.  So most dealers simply refuse to accept a credit card for anything more than a small deposit.

What ZX81 meant about "charging more" was, if the dealer does accept a card, there's a chance they'll inflate the price of the car to cover the credit card fee they'll have to pay.

Just FYI, (I believe again?) credit card companies make the majority of their money from customers paying interest/fees. The merchant fees / interchange fees vary from about 30-40% depending on card issuer

Maybe - although that is an American site you've linked to, so it may be different over there.  I always understood that it was merchant fees that made up the bulk of their income, with customer interest representing a smaller (though certainly not insignificant) proportion.  If they relied heavily on customer interest, surely those of us that always pay in full without fail would find it somewhat harder to get new cards?

Anyhow, I have no wish to argue over that point, I may well have got the wrong end of the stick - if so then I apologise.  But in terms of the specific question in this thread, the point that merchant fees mean many car dealers won't accept CC payments for large amounts is still valid.

I know that Brie says they've rarely had a credit card not accepted - the opposite is true for me, I've never found a dealer that would accept a credit card (apart from a deposit).  Having said that, I always buy older second-hand cars, so maybe the margins are lower on those than if you're spending £10K and upwards?  No idea, just guessing there.

You'd be surprised (or maybe not) that a lot of people don't use credit well, however, people who pay lots of interest and fees etc are not reliable, they default or go crying to sites like this to try and get their debt wiped, hence responsible lending rules. An attractive customer who always pays on time guarantees them merchant fees and no costly headache of debt chasing hence we get good offers and get cards because we have proved we are reliable. We also get better APR than people who are likely to borrow and not pay back so the lender covers their costs. It's not an argument, just a discussion on the point, lenders would not starve without the ones who don't pay in full, but equally they certainly don't want a lot of customers who never pay interest and fees, just the right balance based on whatever they want.

MallyGirl

Brie said:

Ebe_Scrooge said:

I know that Brie says they've rarely had a credit card not accepted - the opposite is true for me, I've never found a dealer that would accept a credit card (apart from a deposit).  Having said that, I always buy older second-hand cars, so maybe the margins are lower on those than if you're spending £10K and upwards?  No idea, just guessing there.

It seems the less you pay for the vehicle the more they want something closer to actual cash.  So the ancient Honda from a back street place wanted a very small deposit and then wanted the rest of the £3k by transfer before I could have the keys.  And they transferred money back to me when I sold the car back to them 3 years later.    The VW was about £6k and the Lexus and Audi were £17k & £22K respectively and were all on credit cards.  So maybe it's more  a garage versus dealership thing?

Audi and Land Rover (both around £30k) would only take £2k deposit on credit cards and then the rest on debit cards or via bank transfer

MrFrugalFever

In response to the OP, a money transfer card is what you’d need or a CC linked to curve.

I don’t take over £1,000 on CC, it’s a company wide agreement set at board level.

cymruchris

Ebe_Scrooge said:

menaistrait said:

I'm looking at KIa Approved and assumed they would take card as they are approved dealers..... I assumed they didn't have to charge more as they get their money and my debt is left with the CC provider?

Most dealers will refuse to take a card for the full amount 

This gets bandied about often when someone mentions buying a car by credit card - yet I know of several people, including immediate family who have done just that, without issue or question. My dad's last car was a 6 month old Vitara from a local Suzuki dealer, and the whole payment went through on his credit card, and nobody blinked an eyelid. At the main dealer end of the scale with fairly large ticket prices, I don't think they mind. It's more the budget run-around end of the market where cards tend to be avoided. The best thing is always to ask the dealer you're considering buying from. Some will say yes - some will say no - but it's definitely not 'Most dealers will refuse....' unless anyone can give stats to support this claim?

eskbanker

cymruchris said:
Some will say yes - some will say no - but it's definitely not 'Most dealers will refuse....' unless anyone can give stats to support this claim?

It cuts both ways - in the absence of any reliable non-anecdotal stats, the statement that 'Most dealers will refuse....' is neither definitely true nor definitely false!

Nebulous2

There's a view I've seen on the motoring board here - that if your dealer accepts your credit card you haven't negotiated hard enough. 

I haven't bought a vehicle post-pandemic, but my previous three vehicles, from Vauxhall, Dacia and Renault main dealers would only take a £500 deposit by credit card. The Vauxhall and Dacia ones demanded the balance by bank transfer in advance of collection. The Renault one took a debit card payment on the day. 

Given the issues we see on the banking board, with transfers being held up for checks, I think either of those options could be more complicated now. 

menaistrait

Well thank you all who have replied and discussed.  

for info I saw a car today that was £7k. it's a 8 branch local ish to the area chain, different ones are approved for different makes tho. he could take up to £1000 on CC on top of the 99 reservation fee I paid today. suits me at least I can loan some of the amount. I am going to get the m&s 0% as the fee on the money transfer one doesn't seem worth it. On dealers taking CCs I think it really will depend on the size of the dealership or its company structure, tie-ins etc, just a guess as with lots of car places being more like banks with all their finance deals/push. also obviously the value of the car therefore the margins they are willing to be flexible on.

I'll report back on the original question of credit limit after I apply!

SJshah

Virgin Money gave me a >£10k credit limit on application.
Santander gave me £15k but that was after a few years of gradually increasing the limit.
Barclaycard was a very low limit about £3k.

Really depends on the bank. If you're only looing to borrow £1-2000 on it they all should cover you, but try to utilise under 50% of your available credit so it doesn't affect your credit ability in future applications.