unbelieveable BMW card story :-o
12-29-2005, 05:42 AM
#21
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This is a common issue with credit cards.
It basically comes down to understanding the legal side of how credit cards work. I remember studying this back in high school.
When a credit card is stolen, and purchases are made by the thief... the card holder may dispute those charges. Furthermore, it is federal law that in such cases... the cardholder is only liable for the first $50 of charges made.
This means that the credit issuer, be it a bank or in this case BMWFS, becomes liable for the rest of the charges beyond that initial $50. So, needless to say, credit card companies are terrified of the potential losses that arise from credit card theft. They will try to say they are protecting you, but this is false.... because the federal government is giving you all the protection you need. They are actually trying to protect themselves. If someone snags your card, and spends $8000 on it.... you only lose $50, and the bank loses the rest.... unless they prosecute the guilty party and collect damages somehow.
This is different than a Debit Card. A debit card takes money directly out of a bank account, and if stolen... the cardholder does not have the same federal protection from losses. That is why I will NEVER have a debit card. I use a credit card, and pay the balance in full every month. I even get frequent flyer miles with it.
It basically comes down to understanding the legal side of how credit cards work. I remember studying this back in high school.
When a credit card is stolen, and purchases are made by the thief... the card holder may dispute those charges. Furthermore, it is federal law that in such cases... the cardholder is only liable for the first $50 of charges made.
This means that the credit issuer, be it a bank or in this case BMWFS, becomes liable for the rest of the charges beyond that initial $50. So, needless to say, credit card companies are terrified of the potential losses that arise from credit card theft. They will try to say they are protecting you, but this is false.... because the federal government is giving you all the protection you need. They are actually trying to protect themselves. If someone snags your card, and spends $8000 on it.... you only lose $50, and the bank loses the rest.... unless they prosecute the guilty party and collect damages somehow.
This is different than a Debit Card. A debit card takes money directly out of a bank account, and if stolen... the cardholder does not have the same federal protection from losses. That is why I will NEVER have a debit card. I use a credit card, and pay the balance in full every month. I even get frequent flyer miles with it.
12-29-2005, 05:43 AM
#23
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My dealer capped the CC payment to $2500. I paid ~$14K down on the car and I figured that if I charged the amount on the CC and get 1% (~$140) back, it would not be better than cutting a check. But noooooo, the dealer would not take anything > $2.5K on the CC.
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Yup, same here - I was looking to put about 5K on and they scoped it to around that figure. I was a little bit pissed for a second or two - it was a Platinum Amex, but they explained the fees would kill them. Fair enough.
12-29-2005, 06:02 AM
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Originally Posted by Cabrio330' post='216725' date='Dec 29 2005, 06:53 AM
I tried to put the total difference between my trade in and the new car on my American Express. Amex approved the charge beforehand (I called them to be sure they would accept such a large amount). The dealer balked, and he said it was because of the fee they would have to pay Amex. That makes sense, so I dropped the idea.
It is possible the thread starter's problem was because his sales guys said yes to the credit card, but the manager said no and they just blamed it on the credit card company. He should call the credit card company directly to see what they say, although if he has canceled the card that may be pointless.
It is possible the thread starter's problem was because his sales guys said yes to the credit card, but the manager said no and they just blamed it on the credit card company. He should call the credit card company directly to see what they say, although if he has canceled the card that may be pointless.
12-29-2005, 06:07 AM
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My Ride: '04 545iS 6 spd, bought new via eBay, 11/05; Blk/Gry, Cold, L7, PDC, BMW Rear seatcover for pets.
First "Bumwa" was a new 1971 2002. High performance 5s since 1987. Beamer motorcycles too, currently on an 07 BMW K1200 GT; also a Moto Guzzi 1000 SP III.
Sounds like cheap dealer SOP to me. FWI my BMW motorcycle dealer has a prominently displayed sign saying he will not accept CC payment for a bike; but that's fairly easy to understand, given bike prices, crazy-high CC limits even for kids, and percentage fees paid by the merchant.
But it's usually the cheesy dealer: When I bought my 540iS off the floor, I added the 6 CD changer (from their parts stock) after we'd written the deal, so I flipped them my Amex card. They visibly balked (3 of them: SA, Parts, and F&I Clown standing around) but walked away with it, and then came back and said the charge machine was down in the service dept and they couldn't do it; "please write a check." I suggested that they either hand write an AMEX charge ticket the old-fashioned way, for the lousy $600, or I was driving my old 92 home. They figured out a way to do it.
Finally, I'd be willing to bet that BMWFS doesn't own that card--probably Chase or somebody who has the no auto purchase transaction (read: lien) rules. But BMW FS ought to be made painfully aware of your Ultimate Driving Machine displeasure (assuming they weren't convering for the dealer). Heck, maybe you'll get a set of floormats out of them...
Oh well, maybe this is just that one, unexpected glitch, that we all encounter in such transactions, and if so, it should be smooth sailing from here on out.
Ray Hull
But it's usually the cheesy dealer: When I bought my 540iS off the floor, I added the 6 CD changer (from their parts stock) after we'd written the deal, so I flipped them my Amex card. They visibly balked (3 of them: SA, Parts, and F&I Clown standing around) but walked away with it, and then came back and said the charge machine was down in the service dept and they couldn't do it; "please write a check." I suggested that they either hand write an AMEX charge ticket the old-fashioned way, for the lousy $600, or I was driving my old 92 home. They figured out a way to do it.
Finally, I'd be willing to bet that BMWFS doesn't own that card--probably Chase or somebody who has the no auto purchase transaction (read: lien) rules. But BMW FS ought to be made painfully aware of your Ultimate Driving Machine displeasure (assuming they weren't convering for the dealer). Heck, maybe you'll get a set of floormats out of them...
Oh well, maybe this is just that one, unexpected glitch, that we all encounter in such transactions, and if so, it should be smooth sailing from here on out.
Ray Hull
12-29-2005, 06:27 AM
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I have not written a cheque (Canadian Spelling) while leasing any of my last five vehicles. Always put the down payment and security on AMEX. The delaer has a $5k max on cards for the reasons discussed here. In my case, they let me go up to 10K becasue of my past dealings with them.
I would imagine it varies from shop to shop all depnding on what their business policies are.
I would imagine it varies from shop to shop all depnding on what their business policies are.
12-29-2005, 07:59 AM
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Originally Posted by stream' post='216629' date='Dec 29 2005, 12:35 AM
They don't want to accept that large a credit card charge because they don't want to pay the credit card fee on it. Most dealers will let you charge up to $5K as a deposit or part of actual payment. When you consider that BMWs have ~9% margin at MSRP (not including holdback), to pay a few points to a credit card company cuts into their profit.
12-29-2005, 09:07 AM
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FWIW, I've had nothing but good experiences with the BMW Ultimate Card. I've had this card for a good number of years now. That is the only card along with my Amex that I would keep if I had to cut all but two. The only time I've been questioned on a purchase is when the card was new and I didn't establish a buying pattern. Or when I purchased something much higher than my normal pattern.
12-29-2005, 10:06 AM
#29
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guys, the dealer WANTED to take my credit card, regardless of the fee. it was my credit card company, aka BMW FS that would not allow me to make the transaction, even though I authorized it and had limit.
fast forward 12 hours - I called USAA (a REAL bank) and they authorized the purchase on my USAA Mastercard and the dealer processed it this AM, no thanks to BMW FS.
fast forward 12 hours - I called USAA (a REAL bank) and they authorized the purchase on my USAA Mastercard and the dealer processed it this AM, no thanks to BMW FS.
12-29-2005, 10:14 AM
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Glad to hear it worked out finally. I don't understand why people keep saying/blaming/explaining why dealer didn't want to take the CC while it is the BMW FS that didn't authorize the transaction.
Originally Posted by ky_soldier' post='216883' date='Dec 29 2005, 02:06 PM
guys, the dealer WANTED to take my credit card, regardless of the fee. it was my credit card company, aka BMW FS that would not allow me to make the transaction, even though I authorized it and had limit.
fast forward 12 hours - I called USAA (a REAL bank) and they authorized the purchase on my USAA Mastercard and the dealer processed it this AM, no thanks to BMW FS.
fast forward 12 hours - I called USAA (a REAL bank) and they authorized the purchase on my USAA Mastercard and the dealer processed it this AM, no thanks to BMW FS.