Car & Bike Planning to purchase new car.. 8lkhs,, ,credit card payment OK?


red dragon

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According to OP he has at least 5 credit cards with limit of each one is more than 8 lakh INR!!
Must be super loaded
 
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manucitc

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EMI on most credit cards even for three months is 13-14%. No one gives 2% EMI. You'll end up paying more than 16k in interest.
Read op post again if you can, OP is saying he has to 2% extra amount as car dealership want to cover credit card usage by charging OP 2% more than required amount..

OP is going to pay his due before credit card due date so he is not going to get charge any amount..

And OP has nowhere mention anything about EMI at all, he want to buy car on one single installment by paying full money through cc
 

nRiTeCh

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For such a whooping amount OP will earn tons of credit points and bank might even make him their short term brand ambassador for buying a car on cc and paying it in one shot!
 
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letmein

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Okay, there are a lot of misinformed posts on this thread.

First of all, making a large lumpsum payment with a Credit Card is not that surprising and just because you haven't done it doesn't mean other people don't. My friend tried to do the same thing while buying a car recently (but only for the initial deposit which was around ~2L), but he ultimately decided against it because of the same reason OP is asking us - the 2% extra he would be paying was more than what he would earn back in terms of reward points.

That said, there are super premium cards with (HDFC Diner's Black, Infinia, AmEx Platinum, CitiGold) which will have credit limits reaching the amount OP is looking to pay and which give excellent reward points. Remember, reward points don't always mean cashback, you can use them for booking flights and hotels (and these offer a higher exchange rate if you go for cashback).

To the OP I would say this - if you are asking this question, it means you probably don't have one of these super premium cards already. That means you have to go through the application process (comparing the benefits), and wait for the card to be activated (assuming you meet their eligibility criteria), before making the car payment. If you are fine with this, go for it. Else it is better to stick to regular means of payment.
 

nRiTeCh

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Okay, there are a lot of misinformed posts on this thread.

First of all, making a large lumpsum payment with a Credit Card is not that surprising and just because you haven't done it doesn't mean other people don't. My friend tried to do the same thing while buying a car recently (but only for the initial deposit which was around ~2L), but he ultimately decided against it because of the same reason OP is asking us - the 2% extra he would be paying was more than what he would earn back in terms of reward points.

That said, there are super premium cards with (HDFC Diner's Black, Infinia, AmEx Platinum, CitiGold) which will have credit limits reaching the amount OP is looking to pay and which give excellent reward points. Remember, reward points don't always mean cashback, you can use them for booking flights and hotels (and these offer a higher exchange rate if you go for cashback).

To the OP I would say this - if you are asking this question, it means you probably don't have one of these super premium cards already. That means you have to go through the application process (comparing the benefits), and wait for the card to be activated (assuming you meet their eligibility criteria), before making the car payment. If you are fine with this, go for it. Else it is better to stick to regular means of payment.
I already own 7 credit cards and each card got credit limit between 2 -3.5 lacs.
And op too has few cards combined which he is thinking of making the payment...8 lacs divided between few card depending on the limits on them. Last year when I was in same boots thinking to buy a car I to wanted to buy with credit card just to avoid cheque, dd, cash hassles but the next question was, will I be able to repay the amount within 60-90days in one go without emi hassles?
More to that will I be getting any concession or discount benefits on the card or from the bank?
Answer was NO. What they in return were offering was a limit enhancement upto 12lcas on a single card. Now who the hell will spend 12 lac in one go if that much amount isnt present in their banks? Crazy!
 

babhishek

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go ahead, share some snaps..
use the cc which gives rewards and more time to repay...
 

windlass

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Check if AMEX has per transaction reward point capping and if it only costs 2 percent extra. USe AMEX as your first pref, nothing beats MR points.
HDFC can be your second pref. If per transaction reward limit is present, break transactions in lower amounts.
ICICI is 3rd choice and StanChart is 4th choice.
 

windlass

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Dude better walk in the showroom like some badboys or james bond with full cash in briefcase. Present yourself as if you already own few bmws and jets.
You pay full cash you will get awesome discount.
Believe that!

My mantra: Only buy house on loan and keep repaying till you retire. Rest all things buy without emi/loan.
Yeah that's not allowed. I guess cash transactions are limited to 10,000 per day.
Relevant News Source
 

terminater

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purchased car.. 7 lakh with hdfc credit card.... extra payment for cc card use at dealer end .. 2%= Rs 14000, now advantage of cc..... points worth 15`16 thousand + intersest of 30-45 days on 7 lakh @ 3 %... U can calculate...
I think CC payment is not bad.. infact .. much better ..with profit..
 
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Julian

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purchased car.. 7 lakh with hdfc credit card.... extra payment for cc card use at dealer end .. 2%= Rs 14000, now advantage of cc..... points worth 15`16 thousand + intersest of 30-45 days on 7 lakh @ 3 %... U can calculate...
I think CC payment is not bad.. infact .. much better ..with profit..
3% Interest on 700000 for 45 days = 2625
points = 16000
CC txn charges = 14000
profit = 16000+2625-14000=4625

reaction from TE peeps on hearing about 7 lakh card payment =
...................................................................................................
1593715691888.png
 

terminater

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No idea.. but dealers claim they have to pay that amount to card company..

Others may have some idea. Please share..
 
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rkkaranrk

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purchased car.. 7 lakh with hdfc credit card.... extra payment for cc card use at dealer end .. 2%= Rs 14000, now advantage of cc..... points worth 15`16 thousand + intersest of 30-45 days on 7 lakh @ 3 %... U can calculate...
I think CC payment is not bad.. infact .. much better ..with profit..
Pictures... Or it dint happen.
 
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red dragon

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Picture of your credit card statement (when you get it), not the car!!