Question for anybody who has actually bought their Model S

[kjwcanary]

I'm P2159, and was hoping to pay for the car by credit card, so I can get the air miles. I know some car companies won't allow this, as it costs them too much in fees. I was wondering if anybody else had tried to pay by cc, and what the reaction was from Tesla?

Thanks in advance!

 

[gg_got_a_tesla]

Discussed briefly here on a tangent:
Model S Deposit Payment Options - Page 2

 

[NEWDL]

No CC accepted. They have to pay a % to the CC company. That is giving away profit.

 

[kjwcanary]

Well, that answers that - thanks!

 

[Right_Said_Fred]

Credit card charges are usually between 2,5 and 3,5% for the accepting party (depending on the number of transactions / amount). Tesla will not want to give away $2000-3000.

 

[Bifff67]

yep, unlikely. Get a home equity loan if you can, theres some cash back for youin slight tax advantage. I wrote two checks, one to max HE loan and the other. Worked fine.

 

[gg_got_a_tesla]

Well, that answers that - thanks!

One other thought from a fellow airline frequent flyer mile junkie: if you do finance some portion, you can possibly make the monthly payments using your MC/Visa at Bill Payment - Online Billpay | Utility-Auto-Mortgage | ChargeSmart - there's a convenience fee that varies by payee but, it's a good way to rack up miles. I do this even with my mortgage payments!

 

[artsci]

One other thought from a fellow airline frequent flyer mile junkie: if you do finance some portion, you can possibly make the monthly payments using your MC/Visa at Bill Payment - Online Billpay | Utility-Auto-Mortgage | ChargeSmart - there's a convenience fee that varies by payee but, it's a good way to rack up miles. I do this even with my mortgage payments!

Won't the interest on the credit card be much more than you'd pay, say on a home equity line of credit? Depending on how much you finance, the credit card extra interest alone might by a few airlines tickets.

 

[Trnsl8r]

Won't the interest on the credit card be much more than you'd pay, say on a home equity line of credit? Depending on how much you finance, the credit card extra interest alone might by a few airlines tickets.

Interest only kicks in if you don't pay your statement in full every month.

 

[Brian H]

It would be cheap if Tesla registered for Dwolla.

 

[gg_got_a_tesla]

Interest only kicks in if you don't pay your statement in full every month.

Yup, never ever paid interest on credit cards in the 15+ years that I've had them. They have been merely for convenience and to rack up rewards such as freq flyer miles.

 

[ItsNotAboutTheMoney]

Credit card charges are usually between 2,5 and 3,5% for the accepting party (depending on the number of transactions / amount). Tesla will not want to give away $2000-3000.

Precisely. Credit cards are a very expensive way to buy most goods. The charge is always there it's just hidden in many cases. (Those of you who aren't self-conscious should ask for a cash discount if there's no credit card surcharge).

Like others I've used them for budgetary convenience and the cashback, but having re-considered the negative effect of transaction fees I now use cash in transactions with local businesses, credit cards with chains that suck the money out of the local economy anyway and credit cards at gas stations because you can't pay cash at the pump here so it's inconvenient to pay with cash.

 

[DrComputer]

Interest only kicks in if you don't pay your statement in full every month.

Not true if you use "convenience checks", cash advances on a credit card or HELOC. Interest begins to accrue immediately.

 

[Robert.Boston]

having re-considered the negative effect of transaction fees I now use cash in transactions with local businesses, credit cards with chains that suck the money out of the local economy anyway and credit cards at gas stations because you can't pay cash at the pump here so it's inconvenient to pay with cash.

+1. Our local food co-op recently put up a sign noting that they had paid over $35,000 in credit card charges in the past year, so I've shifted to paying in cash at businesses I care about.

 

[Brian H]

+1. Our local food co-op recently put up a sign noting that they had paid over $35,000 in credit card charges in the past year, so I've shifted to paying in cash at businesses I care about.

Not widespread yet, but Dwolla was set up as a substitute for credit cards, with a fixed 25¢ fee to the merchant per transaction.

Tesla might benefit considerably from using the system.

 

[neroden]

+1. Our local food co-op recently put up a sign noting that they had paid over $35,000 in credit card charges in the past year, so I've shifted to paying in cash at businesses I care about.

I strictly use cash in person.

I use credit cards for online transactions, where cash is not viable; the credit card company is providing me a very specific service. The service they are providing is this: if I am impersonated online (credit card number copied), it's not my problem, it's the credit card company's problem.

Debit cards should never be used by anyone in the US. Under US laws, if your debit card number is copied and thieves clean out your bank account, you're out the money until the investigation is finished. And the merchants are *still* paying credit card charges. The debit card companies are taking zero risk and charging a percentage to do so; which shouldn't be allowed. (Debit card laws are different and more sensible in Europe.)

 

[Brian H]

I use a debit card, but not linked to a credit card account. It was pickpocketed a few years ago, and I immediately went to the bank (a few hours later). By that time it had been inactivated due to excessive attempts to enter incorrect PINs. The account was cancelled and a new one opened, with a new debit card.

There are straight debit card charges to the merchant, but AFAIK a small fixed fee, not a % like credit cards.

 

[ahimberg]

I love the straight debit card too (except having to explain it at small retail shops who think all debit cards should have a visa logo on them -- they learn). As of Oct 2011 -- Banks will be allowed to charge merchants $.21 for each debit card transaction, plus .05 percent of the purchase price for fraud protection http://www.smartcredit.com/blog/2011/08/12/new-law-on-debit-card-swipe-fees-effective-october-1-2011/

 

[jerry33]

I agree with Neroden. Debit cards are like cheques. The problem, besides the ones mentioned, is that if the billing process goes wild you can get multiple charges on your account and that can cause your cheques to bounce. You won't ever get the overdrawn fees back. If that happened with a credit card the merchant would just reverse the charges and no harm done. The only thing debit cards are good for is ATM machines.

Mostly I use cash for local purchases. However, 90% of all my purchases are online. Only gas and food are local. And because this is Texas, there aren't any coop stores.

 

[Brian H]

I agree with Neroden. Debit cards are like cheques. The problem, besides the ones mentioned, is that if the billing process goes wild you can get multiple charges on your account and that can cause your cheques to bounce. You won't ever get the overdrawn fees back. If that happened with a credit card the merchant would just reverse the charges and no harm done. The only thing debit cards are good for is ATM machines.

Mostly I use cash for local purchases. However, 90% of all my purchases are online. Only gas and food are local. And because this is Texas, there aren't any coop stores.

Never had that happen, and rarely use cash. If I have any, I have to remind myself to use it.