Toyota Rewards Credit Card

The salesman I worked with said generically that the dealership could only accept a maximum of $3,000.00 on a credit card towards the purchase of a car. He didn't offer any qualifications. I wasn't planning to charge my car on a credit card, so I didn't ask for any more details. --TK

 

My local dealer normally only allows $500 on credit card but made an exception for me and allowed me to charge $2000 (I wanted to reap some cash back).

I was allowed to charge $6000 when I bought the Lexus.

 

There is nothing written about the amount that you can put on a card. Dealers limit the amount based on what they are charged by the card companies. They also limit it based on someone using a card, then calling the credit card company and telling them to reverse the charges if they are unhappy about the vehicle. Absolutely nothing a dealer can do about it and we don't find out about the reversal until a few weeks later. Customer has free use of the car during that period. 99.99999% of people would never do this due to there own morality, let alone the numerous laws they are breaking. But I have seen it happen on a cheap used car once.

The Toyota card is a very good one. Dealer doesn't get any direct benefit or kickbacks, but indirectly, a customer is more likely to come back to the dealership for service and parts due to their rewards program.

 

5 points/dollar spend only applies for Toyota purchases, for everthing else it is 1 point/dollar spent. 1 point/dollar is a 1% rebate at this time -- not better than a slew of competing rewards cards that rebate cash, and not as good as a couple. You also are restricted to using the rewards at Toyota only, and are subject to Toyota changing the points value at any time.

Look at the PenFed credit card as an example of a superior offer. We also have a Subaru in the family, and that auto branded credit card has been great, giving 3% rebate. We have used the 'subaru bucks' over the 13 years we have owned the cars for repairs, and have yet to spend a dime out of pocket.

 

I don't believe that because if it were true, far more people would be abusing it and getting away with free (or cheaper) cars. Credit card companies will reverse the charge if the customer isn't delivered a product as promised, but they can't do it just on a whim. They protect the merchants as well.

 

But, people don't try it more often because it is considered grand theft auto. You can't sign a purchase order, take delivery of a vehicle, and decide a week later that you don't like it. I have had 2 instances in the past. One was with a check that the customer put a stop payment on. Funny thing because he worked for a law firm as a paralegal or something similiar. Started trying to speak legalese with me about how the system works. I played dumb and said something about how I am not sure what you just said, but I would go ask one of your partners if what you did gives me grounds to have your arrest on a feonly charge. Within 10 minutes he called and apologized. Then he brought in a certified check later that evening since I refused to take his personal check at that point.

Another scenario was a gentleman purchased a $2300 car for his son. He signed saying the car was sold as-is. Something minor wasn't working when he took delivery. He went to his CC company and had them reverse the charge saying he wasn't delivered what was promised. CC company agreed and gave him back his money. We got the car back. Rather than fight over a $2,000 car, we just forgot the whole thing.

Because of those two scenarios (and the sheer cost of putting a $20,000 car on plastic), we won't do over $2,000 on a credit card. But, each dealer has his own say on what he will take.

 

Typically, the credit card company (CCC) reverses the charges automatically, and then it is up to the vendor to prove that the transaction should be honored. 'Proof' is not a particularly hard threshold, but it does add administrative cost to the vendor.

A person who bought a car entirely on a credit card expecting to return the car in a few weeks without problem is taking a *very* high risk of being saddled with the car. It would simply be worth it for the vendor to go through the CCC hoops.

 

Hi Jeff:

Thanks for your thoughts on the use of Credit Card at an Auto Dealer. It helped me see why dealers are reluctant to accept a 'significant' amount towards a car purchase.

Thankfully, though, each situation is based on its own merit. At least iin my case where the Toyota Dealer has been willing to accept over $8000 towards my 2010 Toyota Prius. At first, he was only going to accept $2000 but came back to me and stated that because they weren't giving me a discount the Sales Manager would allow me the 'extra'. And because I have a 'Reward' program on my Credit Card I was able to get a 'free' plane ticket anywhere in the Atlantic Zone.

Still, with that being said, it must be not easy accepting a Credit Card at all when it is so easy for the Credit Card holder to 'dispute' the purchae and the Credit Card companies so willing to accept their side of the story versus the 'big bad' dealer.

Edward
Marystown, Newfoundland
Canada

 

How would I redeem my points when/if I buy a Prius? With my luck, the dealer would say something like "oh, it's too late to apply those points to the sale".

 

I wish it was like the GM Card. GM cars give you 5% on purchases double that on purchases at GM dealers and some other place. Since our purchases of a 99 Venture between the cars I bought for myself and my kids we save over $6k on rebates. So it's a good program too bad GM doesn't make anything I think I'd buy in the future.

 

I got my Toyota Rewards Visa Card in Feb 2009 when I knew I was going to buy a new Toyota. My dealership allowed me to charge my $1000 deposit on this card when I actually ordered the car. By the time I took possession of my 2010 Prius on June 21, I had $100 worth of "rewards" which I was able to apply towards the purchase price of the vehicle. I will keep using the card until I think I am done buying things from the dealer (will get stocked up on oil filters, oil drain plug washers, air filters, maybe wheel center caps) and then go back to using my other credit card (REI) where I acutally can get my rewards money back (or spend at REI).

 

When I picked up my Prius four weeks ago I took them up on the Toyota card offer and charged $3350 of the purchase on the card. I don't see the downside; if nothing else my first oil change is free. However, with the dealer charging $45 above the going rate at local shops for an oil change and tire rotation I'll be hard pressed to put enough charges on the card to continue to make using it worthwhile; I just don't spend that much money.