# Can I buy a new car using a credit card?



## ademanuele (Mar 9, 2015)

Has anyone tried to pay for a car using a credit cadr (assuming sufficient credit limit), will dealers accept this form of payment?


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## spidey3 (Aug 13, 2019)

ademanuele said:


> Has anyone tried to pay for a car using a credit cadr (assuming sufficient credit limit), will dealers accept this form of payment?


You could, given a high enough credit limit...

...but it's probably a very stupid thing to do, as credit cards (being unsecured credit) carry much higher interest rates than traditional automobile financing (being secured credit, with the car as the collateral). Also, high credit card balances are seen as a negative on your credit score, even if you always make payments on time.


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## Hoggy (May 8, 2002)

Hi, Most dealers will limit the amount the card can be used for because they are usually charged a 2% fee.
Are you thinking of an interest free card & award points?
Hoggy.


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## HOGG (Mar 30, 2018)

ademanuele said:


> Has anyone tried to pay for a car using a credit cadr (assuming sufficient credit limit), will dealers accept this form of payment?


They will take any payments for a sale. When I worked at BMW, a guy bought a brand new M6 on a credit card. 70k WORTH of vehicle.

Sent from my SM-G930F using Tapatalk


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## ademanuele (Mar 9, 2015)

Collecting Avios


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## Rukka (May 9, 2017)

Was told by my Audi dealer that they would only accept up to £2k on credit card and £5k on debit card. Above that, it was bank transfer only.

I just used the CC for my initial deposit.


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## Toshiba (Jul 8, 2004)

Rules have changed over the years, while I've bought cars before on a CC from Audi, recently that's not been possible and a limit was put on any credit card payments. 5k rings a bell. Not all dealers have the same T&Cs however.


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## ross_t_boss (Feb 28, 2017)

Toshiba said:


> Rules have changed over the years, while I've bought cars before on a CC from Audi, recently that's not been possible and a limit was put on any credit card payments. 5k rings a bell. Not all dealers have the same T&Cs however.


This is what I was told, 5k limit maximum on the credit card at Audi dealers, and indeed I put 5k of my deposit on credit card at the time of purchase. The rest of the deposit was done via Debit Card.

There is also a 5k limit for one-off payments against finance, but you can make as many payments as you like over a period of time. So in hindsight I wish I'd put an extra 20k on finance and made 4 extra payments in the first month, for the reward points!

So if it's all about airmiles, just take out finance then pay all bar a few hundred quid off in bulk payments in the first couple of weeks, clearing the card in between if needed. Don't settle in full else you get the 2 month interest penalty.


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## leopard (May 1, 2015)

Most Audi franchises won't these days new or used. BMW might if it's a used car.
There's no real advantage for new cars as you won't get any protection if the sale is over £30k. Worth a go for less though.


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## jam3sc (Dec 7, 2012)

I was told that I could do a maximum of £2k on credit card and the rest had to be on debit.

I paid the £2k with a credit card, then said I'd pay the remaining on a debit and opted to use Apple Pay (which doesn't have a limit like using a contactless card does)...

I actually selected a credit card set up in the wallet on my phone, knowing there would be not restriction on the card machine itself to prevent the payment and it all went through fine. The salesman gave me a bit of a look when the receipt was coming out, but he didn't actually question it and I got a load of Avios. :wink: Could be worth a try!


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## Homie (Feb 18, 2006)

When we bought Mrs H's roadster recently from Glasgow Audi I used my bank debit card, I was surprised that it was not flagged up for a security check. According to the salesman this is not unusual even when paying balances over £20,000


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## Blade Runner (Feb 16, 2018)

Homie said:


> When we bought Mrs H's roadster recently from Glasgow Audi I used my bank debit card, I was surprised that it was not flagged up for a security check. According to the salesman this is not unusual even when paying balances over £20,000


Varies a bit between banks for debit cards, and this is obviously a totally different ball game to credit. Lloyds have an online banking daily transfer limit (to another UK account) of £25k. However, I remember a guy in their anti-fraud dept telling me that the fraud check system (complex algorithm) is reactive and depends "on a number of different factors", not just the amount and the destination account. In other words, it might go through or it might not (even for amounts less than £25k). There is no way of checking in advance.


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