Hi wak,
Thanks for this interesting question.
My answer to your question is that you can purchase new car on cash
using your credit card only when your credit limit allows you to do
so. Since you are planning to pay by cash in a single transaction, you
need to have a real high limit. Cash limits are not your credit
limits. They are a percentage of your actual credit limit. For
example, if the credit limit is $10000 then the cash limit could be
$3000 or $4000 but it will not be $10000.
If you are not sure of what is your cash limit, you can contact your
master card customer service centre and they will give you the exact
details about this.
One more thing, when you withdraw cash from your card, a transaction
fee will be charged to you. This fee generally depends on the card and
varies from 1.5% to 5% of the amount withdrawn. And also the APR on
this cash transaction will be higher than your normal card
transaction.
I asked this question to a friend of mine who is working for a Credit
card company and he suggested that the best option for you is if you
can go for swiping the card instead of the cash from card. It means
that if the dealer of the car is having a credit card processing
system, then you should not pay case and rather pay by card.
But this again will depend on the credit limit assigned to your card.
Now if you know your credit limit and its not enough to purchase a
car, you can call your credit card centre and ask them to increase
your credit limit. You can tell them that you want to purchase a new
car and want to pay by cash. They will then check your credit history
and also many other things and depending on the case, they may or may
not increase your credit limit. You can ask for a temporary increase
in limit or a permanent increase. But just to let you know that
permanent increase is most time consuming and difficult to get. Once
you get your credit limit increased, you can complete the transaction.
So the whole summary of this answer of mine is that your cash purchase
in a single transaction will entirely depend on your credit limit. If
your limit doesn't allow you to withdraw sufficient amount, you can
ask your credit card centre to increase the limit.
I hope this answers your question. Feel free to ask for any
clarification and if you find this satisfactory, feel free to rate it.
Regards,
netcrazy |
