Buying New Car Using Credit Card / Balance Transfer Offer

Lukeypop on 04/08/2024 - 15:04
Last edited 04/08/2024 - 19:30 by 1 other user

Time has come to upgrade from my old 2004 Mazda 2. Have my mind set on a new Suzuki Jimny 3dr 5sp manual - $37,000 drive away.

Seeking some confirmation that I am not overlooking any obvious caveats with my purchasing plan.

Dealer allows credit card payments, no limit with a 0.082% transaction fee - $37,303 total payment.

I plan to make this payment on a points earning cc, utilising a bonus points offer - have yet to decide what my best option is due to nearing the roll-over date of previously used offers.

I then plan to immediately apply for a low fee NAB cc and utilise NAB's 0% interest balance transfer offer for 32 months (no b/t fee).

This will result in a theoretical 0% loan for 32 months, at the cost of $303 and the annual fee to access a bonus points cc (offset by the bonus points).

Am I missing anything obvious here?

Financial Credit Card

Comments

  • sumyungguy on 04/08/2024 - 15:08
    +1

    Credit limit?

    • askbargain on 04/08/2024 - 15:27
      -1

      Easily doable with 2x 15k limit cards

      • sumyungguy on 04/08/2024 - 16:05
        +1

        Sure, assuming OP's income and credit score accommodates at least two credit cards with a total limit of more than $70K… or am I missing something here? Also I believe there's a fee for the balance transfer. But the dealer's transaction fee is amazing.

        • Lukeypop on 04/08/2024 - 16:29
          +1

          I believe when applying for the NAB card - they ask if this card will be used for a balance transfer / closure of other card therefore negating the original card adding to the overall credit limit.

          Definitely no fee on the balance transfer.

          • sumyungguy on 04/08/2024 - 16:31

            @Lukeypop: I thought the current offer comes with a 2% BT fee? Or are you able to get this waived? The average credit limit in Australia is under $10K so you must be well above average. Also, I gather NAB doesn't transfer from Amex

  • brendanm on 04/08/2024 - 16:58

    How much do you earn? Enough to apply for and get credit cards with a total $70k+ limit? Generally they have a limit on the percentage of the credit limit you can transfer, normally about 80%, and there is normally a fee.

    • sumyungguy on 04/08/2024 - 17:05
      +1

      OP claims to have purchased an i30 N Line yet he's still driving a DY series Mazda 2. I'm thinking secret millionaire…

      • brendanm on 04/08/2024 - 17:09

        Just another internet liar, many such cases.

        • Lukeypop on 04/08/2024 - 17:15

          I30 n line is a 2nd car. I drive around 400-500kms a week for work hence why I've held onto the mazda 2 as a daily to run up the km in.

  • oldmate78 on 04/08/2024 - 19:55

    Did this once with Westpac, but they only give 80% of the card’s total limit and had to be paid into old credit card account.

  • JDMcarfan on 04/08/2024 - 23:33
    +1

    Dealer allows credit card payments, no limit with a 0.082% transaction fee - $37,303 total payment.

    You sure about this? Perhaps get this in writing before proceeding. Bought a 5dr Jim at the beginning of the year and they'd only allow $2/2.5k before I'd get slugged a 2-3% transaction fee (which would be their cost of doing the transaction via card). 0.082% seems suspectly low, and seems that might be an EFTPOS/Debit rate if anything.

    Also no 5dr love? 500km a week is a lot and the LWB is much easier on the blacktop and less twitchy.

    • iand on 06/08/2024 - 11:36

      visa, mastercard transaction fees shouldn't exceed 1-1.5% according to the ACCC

  • decryption on 05/08/2024 - 08:39

    I don’t think that card fee is correct for a credit card (debit maybe). Double check that.

  • soan papdi on 05/08/2024 - 10:03
    -1

    If you collect velocity points, look up bonus offers and keep signing up one after the other. 37K will net you enough points to get several free flights in the future.

  • wannagrababargain on 05/08/2024 - 10:39
    +1

    You need a backup plan in case your card application(s) gets rejected or not enough limit.

    You plan to apply for the low fee NAB card after purchasing the car which poses a risk. Credit givers are pretty tight these days, especially given you would have $37k of existing credit card debt when you apply for the new card. Also don't think about bending the truth and 'forgetting' to mention the other card which might have worked back in the day when none of the banks talked to each other. Since circa 2020 all of your existing credit cards and their limits are now listed in your credit file.

    • iand on 06/08/2024 - 11:39

      came here to say the same thing, if your knocked back it will be a high interest loan

  • R081N on 06/08/2024 - 08:08

    I also believe you'll need to pay the minimum repayment each month in order to not have to pay interest. They usually forget to mention this in my experience.

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