Absolutely. I'm in a construction trade and if on a rare occasion we get someone that wants to pay for something on a corporate credit card, we apply the transaction fee. We have to.Those not a business owner might just be surprised at how much credit card fees add up each month for a business. 3-4% charges for credit ( Visa, PayPal, etc.) can eat up about all of the net profit on a vehicle. That is the number one reason a dealer will almost always have a limit on how much of a vehicle purchase you can put on your credit card. Nothing is free in this world, if you go to a bank you expect to pay interest....doing the up front fees at a dealer is exactly the same thing.
Then there is the bank.....especially on loans where the credit rating, down payment to purchase price is borderline, there are limits to what a bank will allow as down payment via credit card to approve the loan.
It's honestly more surprising to me that any dealership would let someone use a card for downpayment without a fee. It surely is an intentional, competitive strategy.
The dealership I bought my Maverick and Bronco from offers lifetime powertrain warranty on new Ford bought from them, which is appealing on both vehicles. My wife does very low miles but she'll absolutely have the Bronco after years the 5/60 is gone - she only changed vehicles now because our son needed her old SUV. And I'll unfortunately blow through the 60k miles in 2.5 to 3 years. At any rate, they definitely lose money on this, just like any dealership that accepts credit cards without passing through the transaction fee.
Sponsored