Buying Advice Purchasing a tractor on a credit card?

[RSR]

So, this isn't as financially irresponsible as the title may indicate.

I'm wondering if anyone has purchased a tractor using a credit card to reap the rewards points, and then immediately paid it off, as opposed to just walking in with a check?

It seems like a reasonable way to save a couple % more on a large tractor purchase. For example, the Chase Freedom Unlimited card offers 3% cash back on all purchases in the first year, up to $20,000. That's a $600 savings on a tractor. On a $30,000 tractor, split between two cards belonging to the wife and I, it's $900. That's a non-negligible amount.

Am I missing anything on this line of thinking?

 

[buckeyefarmer]

I asked, they wouldnt because of the fees.

 

[dalola]

Same here...we always inquire about putting big ticket items on cc's for the cash back/points, but most places (dealers) don't allow it, due to the fees they incur. Can't blame them, but still I will always try!

 

[Industrial Toys]

I pay a yearly fee for my card and get warranty doubled if I recall correctly. Makes you start to wonder. But after the billing period, you better have the mioney in hand.

I will often ask a small business, how many points they have to pay for CC and sometimes offer up cash. It is amazing how many say it doesn't matter. It should! But I guess they see it as the cost of doing business.

 

[nards444]

if the dealer allows it why not. credit is credit to an extent. Only thing with a credit card better either pay up when do or hope its 0%. We use the 0% offers to buy things get some points and then use it as mini interest free loan for a year and pay it off. Smart people use credit to their advantage but smart people are also disciplined with it

 

[hawkeye08]

When I have asked about big purchases on CC, they almost always say for 5% additional, which is more than the cash back.

 

[RSR]

Same here...we always inquire about putting big ticket items on cc's for the cash back/points, but most places (dealers) don't allow it, due to the fees they incur. Can't blame them, but still I will always try!

Good point. I hadn't thought about it from the sellers perspective.

 

[fruitcakesa]

I tried to buy a certified used car once with a CC.
Dealer only allowed $500 on the card, we paid cash for the rest.

 

[the old grind]

Folks with high credit limits bought cars with "The GM Card" when it first came out. The door slammed on that within a fiscal quarter.

I put all bills I can on CC except the PoCo, who won't allow it. (.. only use cash for hookers and heroin. )

A few times in 30 years I didn't pay a balance off by the end of the month. My insurance agent will now take CC with no fees, nearly $3k/yr for 2 cars, truck, & house. Wishing the township would do that for property taxes.

 

[Industrial Toys]

Always amazes me how many eastern and asian business people are shrewd enough to not accept CC payment without a buyers penalty.

Here the Terminals, are robbing businesses and many refuse to go with the nicer (germ free) tap (RFID) system as it's even more expensive for them still.

 

[TractorNH]

If a dealer were willing to accept a credit card for a big ticket purchase without wanting to add a fee then I'd be asking for another 5% off if I pay in cash.

 

[Streetcar]

I had a friend buy $600000 worth of precast arches on credit card . Same price as cash so he used his card

 

[Industrial Toys]

I would have asked for a discount if they were willing to do that.

They must have had quite the large profit margin to work with.

 

[fried1765]

If a dealer were willing to accept a credit card for a big ticket purchase without wanting to add a fee then I'd be asking for another 5% off if I pay in cash.

You might be "asking" .....but I doubt that you would get it!

I have a VISA that gives me 5% on gas,groceries, and drugs, up to a $400 max rebate for the year.
So.....I charge up to $8000 on it for the year, and then put the card away.
Another VISA card gives me 2% back on everything- no limit.
I also use that for gas, groceries, and drugs when the 5% card has reached the $8000 5% limit.
Each year I get about $1200 in cash rebates.

I don't buy things with zero percent interest, because I know then that the selling cost already has the interest baked in.

Of course, I pay off each balance monthly.

 

[Industrial Toys]

SMART. Too bad, so many people are so clueless about finances. So I guess they take 5% from the Merchant, give you 2% and make 3%, or something like that. But are really hoping that you run afoul.

 

[jaxs]

Me and a salesman were $500 apart when he took the deal to the boss. He came back and said he could meet my price if I financed with them. I took it and paid it off the next week.

 

[mred2]

Credit Card fees are about 2% to 4%. Except American Express is higher. Not sure on amount. It is now legal for companies to charge the CC fee to the bill for you to use the card as long as they post the fees. In business, I always gave a discount for cash. Made me a lot happier.

 

[KennyG]

I had a friend buy $600000 worth of precast arches on credit card . Same price as cash so he used his card

I assume that credit card was a special corporate account. I think the fee structure is different on those. I'm sure consumer cards don't go that high on limits.

 

[Jstpssng]

I tried to buy a used snowsled last year on a 0% promo card; as others have said, the dealer selling it have charged me extra.
What I find ironic about this discussion is that there are places which won't accept cash. Also, in another thread some time ago I alluded to people who will put a cup of coffee or some other minor item on a credit card, and got jumped all over for saying that it costs the vendor money, based on what store owners have told me. I have even seen them give away coffee because it's cheaper than running the card through.

 

[jcbGM]

I tried to buy a used snowsled last year on a 0% promo card; as others have said, the dealer selling it have charged me extra.
What I find ironic about this discussion is that there are places which won't accept cash. Also, in another thread some time ago I alluded to people who will put a cup of coffee or some other minor item on a credit card, and got jumped all over for saying that it costs the vendor money, based on what store owners have told me. I have even seen them give away coffee because it's cheaper than running the card through.

Think of this. 5% on a $2.00 cup of coffee is $0.10. The gross margin on the cup of coffee is probably 70%. The issue is that your tractor dealer only making a 8-10% gross profit. Can’t give away 5% if your only making 8% (leaving the dealer just 3%)