Advice please - car dealer refusing credit card

monkey10

We're about to buy a new car and transferred the balance on a credit card with a high credit limit to one with 0% for balance trasnfers intending to put the car payment on the orginial card with 0% for purchases and the high limit.

However, the dealer is claiming we can't pay on credit card because they "cannot get authorisation to take payment for such large amounts by credit card but they do take debit card, because that is guaranteed funds."

Given that I found this out 3 weeks in advance so technically have opportunity to make other arrangement, has anyone got any ideas on how I can get round this?

Thanks in advance.

Debras_Angel

Hi,

I payed £5k last year on my credit card towards my car as a short term option.

You could ask them what the maximum is that they will accept.

Cheers

Debs

PaulLuke

Although they could be refusing because they pay a higher fee for credit card transactions!

lwcus78

You could apply for a virgin credit card and do a balance transfer into your own current account, I think the fee is about 3%?

chappers

Just ask them what the max they can take is and split the payment over a few days. Seems starnge though are you dealing with Arthur Daley .We paid £17K on a credit card for our last car.

jonesMUFCforever

I'm sure they would change their tune if you offered to pay the charge - they would find a way to get authorisation.
Otherwise walk away and find another dealer.

If you have already signed a binding contract then all I can say is that it is too late to find out now that they won't take a payment in the form of a credit card from you.

UK007BullDog

Have they offered you a loan? They get well paid commission on a loan. They have to pay high fees on a credit card payment.

As suggested ask them.

SkintKlint

Yes, they'll be doing this becuse they'll be charged a percentage of the transaction as a processing fee for credit card transactions (usually around 1 - 2% for MC and 2 - 3% for VISA), whereas a debit card transaction will usually only cost a fixed fee of around 30p.

I'm sure if you put the pressure on they might change their minds, but if you've already talked them down (as any good MSE would!), from their point of view the processing fee could erase any profits for them.

I've never come accross an upper limit on CC transactions - if you're within your limit, they can use it!

dfh4np

Its probably due to the extra cover you would get with the card if there is a problem. They would not be able to mess a card company about. I dont think you get the same cover with a debit card.

DFH4NP