Buying new car using CC, charges and rewards

[Mohur]

I want to buy a new car using my Infnia card.

The dealer is saying I would incur 1.95% charges + 18% of 1.95% = 2.3%

Infinia gives me 3.3% rewards, so my net gain will be 1%.

I will be showing the car as a business expense.

Is there any way that I can better optimize the rewards?

 

[ak93]

I want to buy a new car using my Infnia card.

The dealer is saying I would incur 1.95% charges + 18% of 1.95% = 2.3%

Infinia gives me 3.3% rewards, so my net gain will be 1%.

I will be showing the car as a business expense.

Is there any way that I can better optimize the rewards?

Use BharatNxt for transferring the amount to the dealer. There is a charge of 1.1% which is much better than the 2% that the dealer is offering you. Also use cheq app to pay the cc bill with 1% cashback as cheq coins which you can redeem for amazon vouchers.

I am planning to use Magnus card for my car purchase as well in the coming weeks.

 

[Mohur]

Use BharatNxt for transferring the amount to the dealer. There is a charge of 1.1% which is much better than the 2% that the dealer is offering you. Also use cheq app to pay the cc bill with 1% cashback as cheq coins which you can redeem for amazon vouchers.

I am planning to use Magnus card for my car purchase as well in the coming weeks.

BHARATNXT is good option but they are saying that settlement is not instant, can take few hours

 

[ak93]

BHARATNXT is good option but they are saying that settlement is not instant, can take few hours

That's true. The 1.1% is for next day transfer. For same day transfer, it's 1.25% which gets settled in few hours.

 

[OneMileAtATime]

Last week of december, I was able to make almost 70% payment through cc for a car purchase. I was able to negotiate with them to completely waive off extra charges of 1.5%.
They were hardly giving some 5k as discount on 11lac car. So i was able to convince.

 

[vaibhav111vaibhav111 is verified member.]

do let you know what ultimately you do decide and once the bill is generated what base reward rate it comes to @Mohur

 

[ak93]

I got the base reward points (around 38k) as expected for 6.5L transaction done in parts using Magnus in BharatNxt.

 

[Mohur]

do let you know what ultimately you do decide and once the bill is generated what base reward rate it comes to @Mohur

I am in a small city where only limited people use credit card and dealer has clearly told that I will have beat the transaction charges. I have booked the car and delievery is expected in 20 days.

 

[Dr. Drake]

I got the base reward points (around 38k) as expected for 6.5L transaction done in parts using Magnus in BharatNxt.

Didn't you got any call/flag from magnus? if you use 6.5L in such short span on same merchant that too Commerical one?

 

[ak93]

Didn't you got any call/flag from magnus? if you use 6.5L in such short span on same merchant that too Commerical one?

No, my transactionwere being declined after the first transaction of 2L. I called up customer care and asked them to whitelist the transactions. It worked the next day.

 

[yashbhavnani]

I want to buy a new car using my Infnia card.

The dealer is saying I would incur 1.95% charges + 18% of 1.95% = 2.3%

Infinia gives me 3.3% rewards, so my net gain will be 1%.

I will be showing the car as a business expense.

Is there any way that I can better optimize the rewards?

I did the same thing back in 2016 for a PV and 2018 for a CV. On both occasions, I was being offered great discounts as well.
I first negotiated the price for the vehicles and disclosed the payment method only in the final stages.
The dealer said 2% extra charges. I said no, I ll buy from a different dealer. He eventually came around and didn’t charge anything extra. Although, keep in mind that the auto sector was going through some really tough times back then and almost all segment all brands were offering huge discounts to clear the inventories.

But, I did the same thing in 2019 and 2021 as well and this time when the demand was through the roof. I actually hard bargained to not pay any extra charges on card swipe. This time I was feeling ecstatic as the card that I had used for the down payment was Amex. Merchants ask for extra 2% on the usual visa and masters and most don’t even accept Amex. So, to pay without paying extra through a card like Amex was an amazing feeling.

 

[Mohur]

You have many options in a big city but only 1 dealer in cities like where I live. Only limited people hold or use card for buying car here. Most of them use black money to buy cars on cash that too on their family/friend names.

Though I can go to nearby hub to get the car with 0 charges on card but it's not worth the hasstle and my time.

Anyways BHARATNxt is great find from this community.

The car is on its way from Chennai. So the full payment will be made on car delivery only.

 

[akashasnani]

I had bought a car from Volkswagen ahmedabad and paid 100% amount using a credit card. they did not charged anything extra.

 

[Consultant]

For those who use BharatNxt - what is the Turn around time for amount to hit the dealer's account? Also, will all Bharatnxt transactions - UPI, Account transfer, rent etc give us rewards on Infinia & Magnus both?