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Using Credit Cards to Purchase a Car – A Smart Way to Save More (Detailed Guide)

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m4b said:
Accumulating APay using HDFC Infinia to buy a car in the next 15-20 years to get 33% off. Will they accept APay?
Click to expand...
The dealer might accept Amazon Pay as a payment method, but there's a small issue—you can't pay such a large amount using the Amazon wallet due to its limit. Also, you can't stock up on Amazon Pay gift vouchers, as they expire. 😈
 
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TechnoFino said:
The dealer might accept Amazon Pay as a payment method, but there's a small issue—you can't pay such a large amount using the Amazon wallet due to its limit. Also, you can't stock up on Amazon Pay gift vouchers, as they expire. 😈
Click to expand...
But please give an info on indirect point payment
 
TechnoFino said:
Pretty close ...

😂 It's actually not points, but it's directly related to credit card.... which I can't reveal now.

I never sold my points... never... ever...

can't reveal now.... and that's the reason my 2nd card name is also missing from this article.
Click to expand...
I think the second cc can be guessed as it would have a lot of points.

As for how you did it, my best guess is you booked an elaborate holiday trip for the dealer 😂
 
TechnoFino said:
Pretty close ...

😂 It's actually not points, but it's directly related to credit card.... which I can't reveal now.

I never sold my points... never... ever...

can't reveal now.... and that's the reason my 2nd card name is also missing from this article.
Click to expand...
Magnus burgundy is the second card isn’t it!?
 
787 said:
Magnus burgundy is the second card isn’t it!?
Click to expand...
Ohh haan. This dates back to 2023! Tab tak toh Axis se naata juda hua tha founder sahab ka!
Looks like it - using one of the Axis cards to burn points amassed from Reserv, Magnus and other combo!
 
Rahul Gupta said:
Did u use the upgrade method to claim points in cash stastatement
Click to expand...
never done that.
R_A_J said:
AMEX is my (wild) guess!
Click to expand...
pretty close 😅😅😅
jk51 said:
Still for that need at least 48 lac MR points even if statement credit option is used (considering points were not traded).
Click to expand...
I haven’t converted my Amex points into cash since 2021.
I could’ve managed to get the value of 22 MR points equivalent to around ₹12 lakh in cash—there is a way to do it without trading points. But no, I didn’t do that.
 
TechnoFino said:
Purchasing a car is a dream for many middle-class families like ours. Whenever we think about buying something expensive, we instinctively look for ways to save a little extra while spending the necessary amount. As credit card enthusiasts, we try to utilize our cards for shopping, bill payments, and earning rewards—so why not use a credit card for purchasing a car?
A typical family car costs anywhere between ₹8 lakhs to ₹20 lakhs. If we strategically use our credit cards for such a purchase, we can definitely extract good value through rewards, milestone benefits, or cashback.

So, you're planning to buy a new car for your family and also wish to use your credit card for the payment. But what are the things you need to remember, and how should you proceed? Let's break it down.

Step 1: Have Sufficient Funds Ready​

First and foremost, make sure you have the full amount available in your bank account. You should never carry a balance on your credit card after making such a big purchase. Never plan to pay off the car cost in EMIs through your credit card, as the interest rates are extremely high and can lead to serious financial damage.

Also, if you’re planning to take an auto loan, using a credit card won't be an option, as banks directly disburse the loan amount to the car dealer. A workaround? If you have an existing home loan, you can consider taking a top-up loan, which will be disbursed to your savings account. You can then use this amount to pay the car dealer through your credit card and pay off the credit card bill without incurring interest.

Step 2: Choose the Car First, Not the Payment Mode​

Select the car you actually want to buy, not the one that’s convenient for credit card payments. Never compromise on the car model just because a dealer is allowing credit card payments.
After selecting the car, contact multiple local dealers. Begin by negotiating the price, possible discounts, and complimentary accessories. Do not mention anything about credit card payment at this stage. Finalize all deal aspects first.

Once you’ve locked the price and offers, then tell the dealer that you want to pay the full amount via credit card.

Step 3: Negotiate Credit Card Processing Fees​

At this point, the dealer may say that a credit card processing fee will be applicable—usually around 2%. However, this is negotiable. Try to negotiate the fee down to 0.5%, and absolutely avoid paying more than 1%.

In metro or Tier 1/Tier 2 cities, this negotiation might be difficult due to higher sales volumes. But in smaller towns or cities, dealers are more flexible. It’s highly recommended to contact dealers in nearby smaller towns—chances are very high that you’ll get a better deal with lower or even zero processing fees.

Pro tip: A dealer in a small town with lower sales targets is more likely to accommodate your payment method and processing fee negotiation.

Step 4: Choose the Right Credit Card​

Which credit card should you use? This depends on your card portfolio.

First, ask the dealer about the MCC (Merchant Category Code) of their POS machine. If they don’t know (and chances are, they won’t), make a small transaction of ₹200–₹500 using the card, and after 3–4 days, call your credit card issuer to ask:
  • What is the MCC of the transaction?
  • Will you earn reward points for this category?
Most automobile dealers fall under the MCC for "Automobile Dealer or Repair Shop", which is typically reward-eligible for most cards. But it’s important to check.

Real example: A member of the TechnoFino Community once reported that he bought a car using his credit card, but was later charged a fuel surcharge because the dealer’s MCC was incorrectly set to a fuel station.

Step 5: Strategically Use Cards with Milestone or High Reward Benefits​

Still confused about which card to use?

First, check your cards for pending milestone benefits. Use a card to complete those milestones first—this could unlock bonus rewards or fee waivers. Then, move on to the card with the highest base reward rate.

Example: If I have cards like:
  • HDFC Infinia
  • Axis Atlas
  • ICICI Emeralde Private Metal
  • SBI Cashback
  • And a few entry-level cards
Here’s how I’d plan:
  1. Use Axis Atlas first to complete its milestone.
  2. Then use HDFC Infinia for its 3.33% reward rate.
  3. Followed by ICICI Emeralde Private Metal for its 3% reward rate.
You can use multiple cards to split the payment if the dealer allows. This helps you maximize rewards across your portfolio.

My Car Purchase Experience Using Credit Card:
I purchased a compact SUV back in September, 2023, and I wanted to share my experience—especially how I used credit cards for the payment.
My requirements were pretty straightforward: I wanted a car that’s reliable, comes with good after-sales service, affordable maintenance, and decent customer support. I shortlisted a few options: Mahindra XUV300, Tata Nexon, Hyundai Venue, Volkswagen Taigun, Skoda Kushaq, and a couple more.
After researching and comparing, Hyundai Venue stood out as the most practical choice for me. Given its reliability, widespread service network, and overall ownership experience, it just made the most sense.

Once I finalized the car, I started contacting multiple dealers to get the best deal. Surprisingly, almost all dealers in Kolkata quoted the same price, but they all wanted to charge 2% credit card processing fees, which I wasn’t comfortable paying. Since I live about 200 km away from Kolkata, I decided to reach out to my local Hyundai dealer.
I told them upfront that I would be paying the full car amount using my credit card. They agreed without any hesitation and did not mention anything about extra fees. Since they didn’t raise the topic, I didn’t ask either. And as expected, I paid the entire ₹13 lakh using two of my credit cards.

Now comes the best part—my intention wasn’t just to earn reward points, it was to redeem existing reward points. I used my HDFC Infinia credit card to pay ₹1 lakh, which I paid from my own funds. The remaining ₹12 lakh was paid using reward points (indirectly).
So, in essence, I bought my car using mostly reward points, which felt incredibly satisfying. No EMI, no loan, no interest—just smart planning and execution.

Buying a car is a significant expense, but with the right planning, you can turn it into a rewarding experience—literally! From negotiating fees to choosing the best card, every step can save you money and earn you benefits. But remember, only proceed if you can pay the credit card bill in full. Credit cards are a great financial tool—use them wisely.

If you still have doubts or want personalized suggestions, feel free to drop a comment. Happy driving—and swiping smartly!
Click to expand...
Infinia Jaye bhaad me, pahle SBI cashback use karo 5% ke liye 🤪

D₹V

Thread 'Bharat QR - The NPCI Payment Saga'

1722973229567.webp

Introduction:
Bharat QR is a revolutionary payment method designed in 2016 by NPCI to make transactions quicker and more secure. BharatQR supports payment via cards, UPI, mobile banking, etc. It's a great payment method but didn't catch eye as much as UPI.

1722973966104.webp
PC: NPCI

Difference between UPI QR & Bharat QR:
1. UPI QR supports UPI only while Bharat QR supports wide payment options like Debit card, credit card, UPI, etc.
2. UPI QR can be used for P2P, P2M transactions while Bharat QR can be used only for P2M transactions.

How...
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TechnoFino said:
Purchasing a car is a dream for many middle-class families like ours. Whenever we think about buying something expensive, we instinctively look for ways to save a little extra while spending the necessary amount. As credit card enthusiasts, we try to utilize our cards for shopping, bill payments, and earning rewards—so why not use a credit card for purchasing a car?
A typical family car costs anywhere between ₹8 lakhs to ₹20 lakhs. If we strategically use our credit cards for such a purchase, we can definitely extract good value through rewards, milestone benefits, or cashback.

So, you're planning to buy a new car for your family and also wish to use your credit card for the payment. But what are the things you need to remember, and how should you proceed? Let's break it down.

Step 1: Have Sufficient Funds Ready​

First and foremost, make sure you have the full amount available in your bank account. You should never carry a balance on your credit card after making such a big purchase. Never plan to pay off the car cost in EMIs through your credit card, as the interest rates are extremely high and can lead to serious financial damage.

Also, if you’re planning to take an auto loan, using a credit card won't be an option, as banks directly disburse the loan amount to the car dealer. A workaround? If you have an existing home loan, you can consider taking a top-up loan, which will be disbursed to your savings account. You can then use this amount to pay the car dealer through your credit card and pay off the credit card bill without incurring interest.

Step 2: Choose the Car First, Not the Payment Mode​

Select the car you actually want to buy, not the one that’s convenient for credit card payments. Never compromise on the car model just because a dealer is allowing credit card payments.
After selecting the car, contact multiple local dealers. Begin by negotiating the price, possible discounts, and complimentary accessories. Do not mention anything about credit card payment at this stage. Finalize all deal aspects first.

Once you’ve locked the price and offers, then tell the dealer that you want to pay the full amount via credit card.

Step 3: Negotiate Credit Card Processing Fees​

At this point, the dealer may say that a credit card processing fee will be applicable—usually around 2%. However, this is negotiable. Try to negotiate the fee down to 0.5%, and absolutely avoid paying more than 1%.

In metro or Tier 1/Tier 2 cities, this negotiation might be difficult due to higher sales volumes. But in smaller towns or cities, dealers are more flexible. It’s highly recommended to contact dealers in nearby smaller towns—chances are very high that you’ll get a better deal with lower or even zero processing fees.

Pro tip: A dealer in a small town with lower sales targets is more likely to accommodate your payment method and processing fee negotiation.

Step 4: Choose the Right Credit Card​

Which credit card should you use? This depends on your card portfolio.

First, ask the dealer about the MCC (Merchant Category Code) of their POS machine. If they don’t know (and chances are, they won’t), make a small transaction of ₹200–₹500 using the card, and after 3–4 days, call your credit card issuer to ask:
  • What is the MCC of the transaction?
  • Will you earn reward points for this category?
Most automobile dealers fall under the MCC for "Automobile Dealer or Repair Shop", which is typically reward-eligible for most cards. But it’s important to check.

Real example: A member of the TechnoFino Community once reported that he bought a car using his credit card, but was later charged a fuel surcharge because the dealer’s MCC was incorrectly set to a fuel station.

Step 5: Strategically Use Cards with Milestone or High Reward Benefits​

Still confused about which card to use?

First, check your cards for pending milestone benefits. Use a card to complete those milestones first—this could unlock bonus rewards or fee waivers. Then, move on to the card with the highest base reward rate.

Example: If I have cards like:
  • HDFC Infinia
  • Axis Atlas
  • ICICI Emeralde Private Metal
  • SBI Cashback
  • And a few entry-level cards
Here’s how I’d plan:
  1. Use Axis Atlas first to complete its milestone.
  2. Then use HDFC Infinia for its 3.33% reward rate.
  3. Followed by ICICI Emeralde Private Metal for its 3% reward rate.
You can use multiple cards to split the payment if the dealer allows. This helps you maximize rewards across your portfolio.

My Car Purchase Experience Using Credit Card:
I purchased a compact SUV back in September, 2023, and I wanted to share my experience—especially how I used credit cards for the payment.
My requirements were pretty straightforward: I wanted a car that’s reliable, comes with good after-sales service, affordable maintenance, and decent customer support. I shortlisted a few options: Mahindra XUV300, Tata Nexon, Hyundai Venue, Volkswagen Taigun, Skoda Kushaq, and a couple more.
After researching and comparing, Hyundai Venue stood out as the most practical choice for me. Given its reliability, widespread service network, and overall ownership experience, it just made the most sense.

Once I finalized the car, I started contacting multiple dealers to get the best deal. Surprisingly, almost all dealers in Kolkata quoted the same price, but they all wanted to charge 2% credit card processing fees, which I wasn’t comfortable paying. Since I live about 200 km away from Kolkata, I decided to reach out to my local Hyundai dealer.
I told them upfront that I would be paying the full car amount using my credit card. They agreed without any hesitation and did not mention anything about extra fees. Since they didn’t raise the topic, I didn’t ask either. And as expected, I paid the entire ₹13 lakh using two of my credit cards.

Now comes the best part—my intention wasn’t just to earn reward points, it was to redeem existing reward points. I used my HDFC Infinia credit card to pay ₹1 lakh, which I paid from my own funds. The remaining ₹12 lakh was paid using reward points (indirectly).
So, in essence, I bought my car using mostly reward points, which felt incredibly satisfying. No EMI, no loan, no interest—just smart planning and execution.

Buying a car is a significant expense, but with the right planning, you can turn it into a rewarding experience—literally! From negotiating fees to choosing the best card, every step can save you money and earn you benefits. But remember, only proceed if you can pay the credit card bill in full. Credit cards are a great financial tool—use them wisely.

If you still have doubts or want personalized suggestions, feel free to drop a comment. Happy driving—and swiping smartly!
Click to expand...
You paid the card via points, but that's not literally right, since you have to first convert those points’ value into rupees. How did you do that? Could you please elaborate on your method? I believe you are hypothetically calculating the points’ value, similar to how they are converted into rupees when booking flights. The resulting rupees are then considered the actual currency for purchasing the car. Right?
 
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TechnoFino said:
never done that.

pretty close 😅😅😅

I haven’t converted my Amex points into cash since 2021.
I could’ve managed to get the value of 22 MR points equivalent to around ₹12 lakh in cash—there is a way to do it without trading points. But no, I didn’t do that.
Click to expand...
Amex US?
But qn remains how did u use the points.
 
Very interesting thread but left all of us with one question...

Sarcastic Chunky Pandey GIF by Amazon miniTV
 
ccdc said:
also mention this method so that others can take advantage...
Click to expand...
Indian MR points -> US MR Points conversation (1 Indian MR = approx 0.6 US MR)
22,00,000 Indian MR = 13,20,000 US MR
Now, Charles Schwab Amex Platinum Card holders can convert their MR points to real cash in their Charles Schwab brokerage account at the rate of 1 MR = 1.1 cent
So,
13,20,000 MR = 13,20,000 X 1.1 cent = 14,52,000 cent / 100 US dollar = $14,520
Now,
as per 2023 exchange rate, 1 USD was approx 83 INR
so 14520 USD = 12,05,160 INR


But I haven't done this 😈
 
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