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Discussion Starter · #1 ·
I'm at the part of the OSD program where I pay for the car. I'm putting $14,000 down, in addition to the $4000 deposit, and financing the rest through a credit union. I was under the assumption that the dealer would take AMEX for the deposit (14,000 points is two nights in Stockholm) but the dealer told me they have a limit of $3000 on credit card transactions because they're not crazy about paying the fees.

Is this normal? What can I do about it?

I haven't bought a car in 8 years so I'm not sure what is normal in these situations. What I do know is that it's leaving a slightly bad taste in my mouth. If I'd known this was the policy I would have taken my business elsewhere. I suppose it's my fault for not asking at the beginning.
 

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Re: Paying downpayment on Credit Card (jlieb)

I paid my $4000 OSD deposit with a credit card. I guess dealers differ in acceptance of credit cards. Do you mean charging the $4000 deposit, or $14,000? I don't know what you could do if the dealer doesn't want to accept it, but there isn't much difference in charging $3000 or $4000.
 

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When I bought my 2006 S60 ( May ) I saw a sign in the finance managers officer that stated a very low limit you could put on a card, I think it was $ 2000.00, maybe try talking to THE Manager.
 

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Discussion Starter · #4 ·
I was going to put the $14000 on the card. The $4000 paid with a check for some strange reason.

I was talking to the manager :-(

hmm...maybe it's relatively normal in that case.
 

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Re: (jlieb)

In my case, the $4,000 deposit was on a credit card and the rest was cashier's check.
 

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Re: Paying downpayment on Credit Card (jlieb)

Most retailers will frown upon charging large sums to credit cards because of the fees they would have to pay to Visa/MC/Amex/etc, which could be as high as 10% of the transaction.

I asked once if they could let me pay the fees with a check but they couldn't figure out how to handle a transaction like that.
 

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Re: Paying downpayment on Credit Card (jlieb)

There is a couple of reasons why this is normal.

The first is the dealer gets charged a percentage by the AMEX for the availability in accepting charges thru AMEX's services. I own 3 companies and it's about a 3% percent charge that I pay on all my transitions from the customers using credit cards. I would imagine the percentage on 4,000 or 14,000 would be around 160.00 or 560.00 on the transaction.

The second reason...probably the biggest is that you're financing the vehicle. You're trying to put a down payment using a credit card...than adding another party to the deal by financing the car. The credit card can't collect on the deposit of the car if someone else owns the lean on it.

The limit is normal. I did put down around 2,500 towards the down payment using the visa. I would assume in the end that it is up to the dealer to determine how much to accept from the CC.
 

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I also put my $4000.00 deposite down on my Worldperks Visa card. No problem, but I am cutting a check for the rest.
 

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Re: (laser8302)

All of the explanations given on this topic by everyone are true! The reason for not accepting large transactions on creidt cards is due to the merechant fees charged by the various credit card companies.
There are many credit card processing companies...and the charges do vary from card to card. The simplest way a dealership can "limit" the fees (which we all accept as part of the cost of doing business) is to exstablish a "limit", so that we know that the charges will not exceed a certain amount.
At our store, we are certainly not trying to make it difficult to do business...we are simply trying to control that "overhead"...as any business would do. That being said...I have gotten "creative" and charged the deposit amount and then put another $2500 on a charge transaction at the final payment, in teh next business month, so my customer could maximaze the awards benifits....but NOT when there is a lien. In essence...when you finance, you are telling your lienholder that you are making a cash/trade down payment. The lender makes their loan based on those facts and the dealer represents those to be true and accurate....when in reality, you may be "financing" the downpayment via the credit card. Now, do some dealerships not say anything?...SURE they do...Is it right?...NO!
I would rather be upfront with the lenders and keep a positive relationship vs do anything somewhat suspect and ruin my rapport with that lender.
 

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Discussion Starter · #10 ·
Re: (universityvolvoOSD)

Thanks...makes sense.

In running around and trying to get a loan lately I ultimately decided to just pay cash for the vehicle. Trouble is that I'm at the 30 days before pickup date, just got the VIN yesterday, my OSD rep is on vacation, the dealership manager (filling in for my OSD rep) doesn't seem to have a really solid handle on what's going on, the cash is currently floating around in transfers, and I'm going on vacation tomorrow.

How serious is Volvo about the 30 days time limit? I'd ask my Volvo OSD rep but he's on vacation, I'd ask Volvo Customer Care but it seems they've been in training all day, and I'm going to ask the dealership manager but I'm not sure he knows everything that's going on.

Got any input
 

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Re: (jlieb)

Quote, originally posted by jlieb »
Thanks...makes sense.

In running around and trying to get a loan lately I ultimately decided to just pay cash for the vehicle. Trouble is that I'm at the 30 days before pickup date, just got the VIN yesterday, my OSD rep is on vacation, the dealership manager (filling in for my OSD rep) doesn't seem to have a really solid handle on what's going on, the cash is currently floating around in transfers, and I'm going on vacation tomorrow.

How serious is Volvo about the 30 days time limit? I'd ask my Volvo OSD rep but he's on vacation, I'd ask Volvo Customer Care but it seems they've been in training all day, and I'm going to ask the dealership manager but I'm not sure he knows everything that's going on.

Got any input

Your paid in full? Your fine. I paid the full amount and closed the deal 20 days before I left. In my case it was Volvo's fault in getting me the VIN number to finish the finance paperwork.

If not??? I think you want to pay as soon as possable if the VIN has been established. They need to see conformation on the payment ASAP. The OSD dealer has to send the paperwork in after the sale is complete.

My guess is you and the OSD dealer are taking a short vacation for the 4th of July. You should be ok if you closed the deal on the 5th.
 

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Re: (KillerB)

You should be ok if you closed the deal on the 5th.


You will be fine if you are in the 20-25 day window of picking up the car....escpecially if you are paying cash. The dealer will have the $$ in hand and Volvo will get it from the dealer in plenty of time (via an internal accounting system that is in place for OSD payments)...Don't worry.
However......get your reciept of payment and your "bill of sale" documeted as "paid in full"!............then enjoy the trip!....It is the most fun you can have buying a car! http://********************/smile/emthup.gif
 

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Re: Paying downpayment on Credit Card (jlieb)

Quote, originally posted by jlieb »
I'm at the part of the OSD program where I pay for the car. I'm putting $14,000 down, in addition to the $4000 deposit, and financing the rest through a credit union. I was under the assumption that the dealer would take AMEX for the deposit (14,000 points is two nights in Stockholm) but the dealer told me they have a limit of $3000 on credit card transactions because they're not crazy about paying the fees.

Is this normal? What can I do about it?

I haven't bought a car in 8 years so I'm not sure what is normal in these situations. What I do know is that it's leaving a slightly bad taste in my mouth. If I'd known this was the policy I would have taken my business elsewhere. I suppose it's my fault for not asking at the beginning.

When I worked at Stillman, our policy was $2000 max on a credit card but we did accept $4000 deposits when OSD increased that amount.

But on other vehicle transactions we were pretty strict in enforcing it. The reasons? They have been explained above by the others.

Yannis
 
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