Downpayment/partial payment via credit card? (Canada)

[JeuneTurc]

OK, I am going to be talking pricing with the dealers next week--decided on the XRS instead of the Mazda 3 GT.

My question is to those who are in Canada, especially people who work at dealerships. I am not going to be using the Toyota financing (since @ 5.9%, it is a lot higher than other credit I have access to) so as far as the dealer is concerned I am paying it in full. Is it possible to pay my downpayment, and later on, when they get the car (supposedly 6 weeks + 10 days later) part of the outstanding balance with a credit card? I pay off my credit cards every month religiously, so I will actually have the money from my line of credit (that I am using to get the car) in my checking account ready to pay off my credit card when it comes due. The reason I want to use the credit card for most of the payment is I collect points with this credit card, and putting almost 20K on it in two different months (and paying them off right away) will net me a LOT of points.

I have a friend who actually bought a car on his American Express card--full price, and it was a brand new car--in the United States, but he owns his own company and the US seems to be more open to credit card purchases than Canada in general. Until now I always used finance companies (from the manufacturer) to buy cars, and the downpayments were via cheque, but the last time I did that was 9 years ago.

So, does anyone know whether or not a Canadian Toyota dealer would accept payment via credit card, either for the downpayment and/or downpayment + partial payment for the outstanding balance? Or should I not even ask them if it is a totally stupid question (i.e. I don't want to look like an idiot at the dealership if this is a definite no-no)

Thanx!!!

[nmehes]

You'll probably be able to put down a certain amount with Credit. But most places will limit you to an amount. Ie $2000 max or something of that nature. At least that's how it's done where I am. Any dealer that allows you to pay all by CC. is losing 2.5 to 3% of its deal right there (what the CC company charges).....ie almost all the profit.

[Precision4]

I used one of my credit cards for my down payment (for points) and was only allowed to use up to $3000. That was at Erin Park Toyota in Mississauga.

[cabur]

I paid C$5000.00 with my credit card. Rest is from my line of credit.
I did phojne the credit card co. first so they will not stop payment.

[Kabal]

Originally Posted by Precision4

I used one of my credit cards for my down payment (for points) and was only allowed to use up to $3000. That was at Erin Park Toyota in Mississauga.

I too used a credit card for part of my downpayment - the max the dealership would allow me was $3000 as well.

[JeuneTurc]

Cool, that is better than nothing I too shall try to pay 3 to 5K downpayment with my credit card then--for my points!!! Thanx for the feedback, guys!

cabur. good idea, I was planning on calling the card company to make sure they don't reject the transaction as suspicious as well.

[rolla-XRS]

IT depends on the dealer on how much they will let you put - but I doubt they would let you pay the entire thing without you footing the bill for the extra credit card charges. When the dealer pays 3% to the credit card for the transaction, there's no more profit left to the dealership.

[joey116]

I would work out your best deal first, before mentioning Credit Cards, dealers are quite capable of
recouping what the Credit Card fee costs by adjusting the total price.

I just bought a 09 Corolla LE, found a $1100 spread between dealers.

[JeuneTurc]

Originally Posted by rolla-XRS

IT depends on the dealer on how much they will let you put - but I doubt they would let you pay the entire thing without you footing the bill for the extra credit card charges. When the dealer pays 3% to the credit card for the transaction, there's no more profit left to the dealership.

Yeah, actually the dealer asked me if I got points on the card (before I even mentioned it) and told me he'd put the max he can put on it, which turned out to be $2500 for this particular dealer.

[nikolasmor]

$3K here also. I did it for the points(5 points per dollar)