Buying new car in cash

SiliconChip

There is no point in trying to get either a new credit card or a higher limit on an existing one until you establish whether the dealer will take a credit card for more than a nominal amount - you say they'll take partial payment, but for how much? Most won't allow more than a few £hundred because the fees they have to pay on large transactions would eat into their profit margins.

DullGreyGuy

user1977 said:

DullGreyGuy said:

challengesahead said:

Has anyone used any cashback/rewards credit card to make big purchase recently?

All the time, but the challenge will be if the garage is actually willing to accept a credit card for such a large purchase... most are willing for you to pay a sub £1,000 holding fee/deposit or such by credit card but any more than that it has to be by debit card or another form of payment which doesnt charge them a percentage. 

Its a slight quirk of garages as were you to buy a few bottles of Romanée Conti 2009 along with your meal the restaurant would be happy to put through the £60k on your card. 

These things are mostly to do with the profit margin - your restaurant booze is of course hugely more expensive than the same stuff from an off-licence, so the restaurant can happily swallow the credit card commission, whereas the garage isn't making all that much as a percentage. 

In principle I agree however the margin ultimately is set by the seller and so is in their gift to factor it in just like all other sellers do... last vehicle I had a circa 10% discount from list price, that easily could have been 9.25% and they then allow cards. 

fatbelly

challengesahead said:

The car is a MG 4 EV(£31,500). Looks like since its a new model and quite in demand, dealer has got people in waiting so not really motivated to give any perks. Checked other places and they have got same pricing, plus wait for another 3-4 months to get delivery.
Dealer is happy to take partial payment via credit card. So is there a credit card, that I can utilize for cashback/points.

https://www.moneysavingexpert.com/credit-cards/best-credit-card-rewards/

happyc84

Paid cash and tradein for new merc, was able to get £2k difference between dealers.
When I phoned the 1st dealer to say i  was going with 2nd dealer, they took the huff. Said they didn't think I was a serious buyer. I did ask them for their Best Price to exchange, but no response. They lost a £45k sale because I didn't look "posh" enough for them. The 2nd merc dealer was excellent. So I would shop around.

Freecall

happyc84 said:

Paid cash and tradein for new merc, was able to get £2k difference between dealers.
When I phoned the 1st dealer to say i  was going with 2nd dealer, they took the huff. Said they didn't think I was a serious buyer. I did ask them for their Best Price to exchange, but no response. They lost a £45k sale because I didn't look "posh" enough for them. The 2nd merc dealer was excellent. So I would shop around.

I can't possibly imagine why any car dealer would have an interest in whether you look "posh" or not.

Probably simply lack of communication.

MEM62

challengesahead said:

1) using  finance(pcp) is available at 7.9% 
PCP you pay but never own anything.  Never saw the point myself - other than the fact it can put your backside on a car seat that would otherwise be unaffordable.   
2) pay cash
Good idea!  No interest or finance charges mean your only ownership costs are depreciation and running costs.   
3) use a credit card with promo / cashback
Unlikely to be accepted by most dealers. 

My thoughts above.

Grumpy_chap

Freecall said:

I can't possibly imagine why any car dealer would have an interest in whether you look "posh" or not.

I think they do.
It is daft really as there are lottery winners and tradespeople around that are all real prospects for a premium car purchase.
I guess, from the sales representative's perspective, they are trying to use any method to filter a closed sale from a timewaster as easily as they can - that process very probably means a lot of (unconscious) bias.

motorguy

Grumpy_chap said:

Freecall said:

I can't possibly imagine why any car dealer would have an interest in whether you look "posh" or not.

I think they do.
It is daft really as there are lottery winners and tradespeople around that are all real prospects for a premium car purchase.
I guess, from the sales representative's perspective, they are trying to use any method to filter a closed sale from a timewaster as easily as they can - that process very probably means a lot of (unconscious) bias.

its a bit of a urban legend that that happens - the story usually ends with "and i drove past in my new <insert posh car brand here> in time to see the <insert other posh car brand here> salesman who short shifted me out of the premises for turning up in jeans in tears getting fired by the sales manager".

They will qualify you, yes, but it'll be subtle and correct 98% of the time.

i dont think i've bought any car - ranging from £100 to £50,000 over the years - wearing anything but jeans, t shirt and trainers.

motorguy

challengesahead said:

I am about to buy an electric car in couple of weeks time. Have got few options

1) using  finance(pcp) is available at 7.9%
2) pay cash
3) use a credit card with promo / cashback

The first two don't seem too great. Has anyone used any cashback/rewards credit card to make big purchase recently?

Ask if there are any incentives from the manufacturer to use the finance.  It could be equivalent to several thousand or free servicing, etc.

I doubt you'd be able to use a credit card to make the full purchase.  The car dealers have to pay a % of the transaction fee, so the fees could be greater than their net margin.

Try for a cheap bank loan.  There are still attainable loans available from 4.9% to 5.1% APR

Grumpy_chap

motorguy said:

They will qualify you, yes, but it'll be subtle and correct 98% of the time.

Well, I must be doing something wrong then as I've been "qualified out" more times than I can remember. 

On several occasions, I've just given up and stuck with the car I want (a new car is a large and discretionary purchase, so if the vendor doesn't want the sale, I don't need to give it to them).

Not the full urban myth you mention, but on two occasions I've been in the Dealership with my cheque book ready to place a deposit for a brand new car and walked out to then place the business elsewhere.  A short interval of time later, the Dealer will phone asking if I plan to go ahead and I'll tell them the order is gone elsewhere and the response has been "I'd have matched that if you came back to me".  In these modern days, Dealers must be aware that serious buyers have already researched market-price and discounts ahead of attending the showroom.  (Both were before COVID disruptions).

Car Dealers are no different to any high-end product retailer. 
In May this year, my wife and I were killing time in a shopping centre and popped into a jewellers, where my wife saw a lovely (but absurdly expensive and unaffordable) watch.  The sales representative quickly turned to "are you buying this watch, or leave my shop".  That was a busy Saturday and we were in scruffs.
It so happened that on Thursday this week, I was in the same shopping centre killing time, so I looked at the same watch and the sales representative was keen to make a sale.  The only obvious difference being that I was in a suit, though perhaps my mention that the watch was on display at 25% higher than I'd seen earlier in the year had an impact - but that conversation only happened after I had been initially "qualified in".
Sorry - but the qualification based on appearances is real and current.