Buying a car with Credit Card

[aviator]

Need suggestion, I am buying a car and need to shell out 10-12.5L, would paying by credit card be a viable option? The dealer may charge us for the same.

I have the following cards:
- Amex MRCC
- OneCard - Federal Bank
- Kotak Indian Oil Card
- Yes Reserv
- Magnus for Burgundy
- HDFC Regalia

Please help me with the following:
1. Should I be using credit card for the purchase? If yes, please give your top 3 preference
2. Can the markup be charged by the dealer? Any way to negotiate the same?
3. Any implications on Income Tax notices etc? No cash dealings though
4. Any other card than be applied and delivered within 10-15 days for the same?
5. Anything else to be mindful of?

 

[MVC]

Which car ?

 

[narun2001]

1. Yes, use Magnus for Burgundy. Accelerated rewards of 35 ER/200 is very good.
2. Usually, they charge, however, have read here in the forum from other people that you can negotiate hard with them and make them not charge.
3. Not sure. But shouldn't be a problem. It's all recorded just to ensure that you have enough source to support this.

There was another similar to this a few days back. Please go through that also

 

[Abhi5467]

Simply DON’T! The dealer will charge you the transaction fees. Considering it’s in Lakhs , it would be quite an amount. I asked dealer while I purchased mine in 2020. He simply didn’t want to as credit card transactions are not settled fast. Even if some agree the fees is usually 1-2 %. Moreover it will be reported to Income Tax as you are purchasing something on borrowed money which is interest free and banks don’t like it as they lose out on a car loan which will make money to them. Many banks also block the said transaction as the amount is high and if you still use they might block the card. Nonetheless if you buy it too when you will be pay your credit card bill it will be reported for sure and chances of IT notice is quite high. Overall it’s a no no as you are taking risk for nothing and will be getting zero rewards and paying the transaction fees for dealer. Luxury brands may let you buy it with a card like Centurion black as they see you a prospective customer of buying multiple cars with them. If this trick would have been worked people would have gone crazy maxing out cards and buying cars🫢

 

[Deleted member 11974]

MAGNUS BURGUNDY
YES REZERV
AMEX MRCC/HDFC REGALIA
use in this method

first confirm the MCC code

 

[gabu]

Avoid annual usage of 10lacs+ with any single bank (all cards spending included for that bank) to avoid any unnecessary questions. However If your ITR is high enough and can justify usage with your income n txns then no problem.
Only magnus burgundy & mrcc upto 20k is worth the surcharge in your card portfolio.

 

[sahilg0804]

Avoid annual usage of 10lacs+ with any single bank (all cards spending included for that bank) to avoid any unnecessary questions. However If your ITR is high enough and can justify usage with your income n txns then no problem.
Only magnus burgundy & mrcc upto 20k is worth the surcharge in your card portfolio.

Purchasing a car valued more than 10L will be reported in ITR as 1% TCS will be deducted from the buyer.

 

[taaj17]

I think that I'm the right person to answer your question, I bought a toyota Fortuner in January this year, paid 40lakhs out of 45 lakhs via magnus burgundy. Got a windfall of points last week. I guess my international trave for next two years is sorted now.

 

[moneyMaker]

Usually, they charge, however, have read here in the forum from other people that you can negotiate hard with them and make them not charge.

Can you give some prompts?

 

[Swastik]

I think that I'm the right person to answer your question, I bought a toyota Fortuner in January this year, paid 40lakhs out of 45 lakhs via magnus burgundy. Got a windfall of points last week. I guess my international trave for next two years is sorted now.

Limit on your M4B must be crazy

 

[It_is_Naruto]

Go for it.... M4B...negotiate for the charges... in my opinion 1% extra will not hurt...considering the rewards...
If there is any concern on 10+ lac transaction, ask to pay less than 10 by card and rest by RTGS or similar.

 

[It_is_Naruto]

I think that I'm the right person to answer your question, I bought a toyota Fortuner in January this year, paid 40lakhs out of 45 lakhs via magnus burgundy. Got a windfall of points last week. I guess my international trave for next two years is sorted now.

Wah Taj wali baat kardi ye to...

 

[sourpai]

I think that I'm the right person to answer your question, I bought a toyota Fortuner in January this year, paid 40lakhs out of 45 lakhs via magnus burgundy. Got a windfall of points last week. I guess my international trave for next two years is sorted now.

Thats great!

But please transfer the points before there is any possibility of card account block

 

[taaj17]

Alright so I have a limit of 10L on my card. Made 4 transactions of 10L each on four consecutive days. The company didnt charge me anything for using my card.

 

[taaj17]

Also the car is on my name so there's no reason for axis to block my points. And for the people worying about big spends on their cards and receiving an Income tax notice, If you make enough money and have stable itr. There should be no problem at all.

 

[cardwala]

Alright so I have a limit of 10L on my card. Made 4 transactions of 10L each on four consecutive days. The company didnt charge me anything for using my card.

If I am not wrong you would have received below points:

1. Regular Points = 40,00,000/200*12 = 2,40,000
2. Accelerated Points = (40,00,000-1,50,000)/200 * (35-12) = 4,42,750

Total = 6,82,750 Points

When did you purchased the car?

 

[Lobogris]

Also the car is on my name so there's no reason for axis to block my points. And for the people worying about big spends on their cards and receiving an Income tax notice, If you make enough money and have stable itr. There should be no problem at all.

Did the dealer impose a surcharge?

 

[hrishig]

Also the car is on my name so there's no reason for axis to block my points. And for the people worying about big spends on their cards and receiving an Income tax notice, If you make enough money and have stable itr. There should be no problem at all.

I am just curious: How does the axis know about the car's registration details? If someone takes car on a spouse/parent/adult child's name and the payment is done with your card , will axis care?

 

[tachniki]

I am just curious: How does the axis know about the car's registration details? If someone takes car on a spouse/parent/adult child's name and the payment is done with your card , will axis care?

Axis, being axis, may ask invoice copy to check if it was not a business transaction. They may ask at anytime in future.

 

[hrishig]

Axis, being axis, may ask invoice copy to check if it was not a business transaction. They may ask at anytime in future.

True. Maybe getting an add-on card for MB in the car owner's name and then making the payment will work. The income tax report will still be in the primary card owner's name, which is Okay as long as you have a justifiable ITR.