Can I buy a car in Thailand with a Credit Card?

[kbelyeu]

Quite a few obnoxious responses here, as usual. No real surprise since my very first posts here were met with the same.

I will just comment on the economics, assuming a willing dealer and a 3% surcharge.

There are many, many U.S. credit cards that have no fx fees and in fact you get essentially wholesale rates, much better than moving cash to Thailand.

There are also many cards that have cash-back schemes, and 2% can be achieved on some no-fx cards. Add back the better exchange rate on the card transaction (vs moving cash), and you end up with a similar price and greater convenience. There are also rewards programs worth more than 2%. In fact, I value some of my credit card points at over 5% since they can be used to book business class tickets that would need to pay cash for otherwise (yes, I have done the math).

Some U.S. cards also have free interest periods or very low rates. Personally, I hadn't really considered the idea before, but I may actually check into purchasing my upcoming car delivery on a credit card, then simply pay off the balance immediately (don't want/need the financing).

So, despite all the vitriol in many responses, there are cases where purchasing with a credit card is actually financially prudent. As a pure financing scheme, using a card that has fx-fees, high interest rate, and no rewards? That's a different matter, but certainly a credit card would be my choice rather than going through the inconvenience, invasion-of-privacy (really humiliation) of applying for a loan from a Thai bank. Try to think outside the box, people.

I picked up 2 for 1 points on my card and when I was able to negotiate 30,000 off the list price of the vehicle and pretty much every accessory added free of charge.

Kurt

[WarpSpeed]

Buying a car with a credit card.....

Save up your money and pay cash, or buy a car you can afford now. Idiotic to do anything else.

I would agree with this.

Even after it's been proven several times to be a really impotent post? Hmmm.....Clueless must be a way of life for some?

Edited January 28, 2015 by WarpSpeed

[eastbay]

Uh oh- I just checked my bank, and THEY charged another 3% or thereabouts for a "foreign currency transaction fee".

So using the card wound up costing about $250 USD on a $4,000 USD purchase. I suppose that this would scale up or down in proportion, and be offset (or not) by points or whatever incentives the card is offering.

[WarpSpeed]

Foreign currency exchange rate is going to happen no matter what unless it's already in Thai baht, it has to be exchanged into Thai baht, throw away cost.

[eppic]

Uh oh- I just checked my bank, and THEY charged another 3% or thereabouts for a "foreign currency transaction fee".

So using the card wound up costing about $250 USD on a $4,000 USD purchase. I suppose that this would scale up or down in proportion, and be offset (or not) by points or whatever incentives the card is offering.

If you are planning to stay in Thailand (or anywhere outside the US. for that matter), you should really make the little effort it takes to get one or more cards with no foreign transactions fees. All of Capital One's cards, many from Chase and some from Citi and BofA avoid this fee....I have at least one card from all of those banks and they are used rather than moving money to Thailand or Singapore -- pays off in many ways (convenience, cost, points)...no reason to keep a card that charges a 3% foreign transaction fee...only worse thing you could do is choose to pay in US$ at checkout time, then you get screwed for yet another 3-5% (6-8% total).

[chill]

Just my 2 cents worth because I've never tried what you are suggesting. However if the amount is within your daily limit and your American credit card actually works in the dealership and the dealer does actually charge you the extra 3%, or whatever, card processing fee, ask him to put it on the invoice as a seperate item. In which case you can write to your bank with a copy of the invoice and inform them that you have been charged the extra fee and request a refund. A long time ago when I was involved in this sort of thing there used to be a clear cut agreement between the merchant and the bank that the merchant would bear those fees and not the customer. I am fully aware that Thai merchants will usually add the extra on but I suspect it is still against their contract with the bank and your agreement with the bank. Whether or not you get the refund I don't know but maybe no harm in trying. The worst that could happen would be extensive head injuries caused by suicide. But do remember that 1.9% monthly interest equates to about 26% interest per year which is pretty steep in these times.

[konying]

Just my 2 cents worth because I've never tried what you are suggesting. However if the amount is within your daily limit and your American credit card actually works in the dealership and the dealer does actually charge you the extra 3%, or whatever, card processing fee, ask him to put it on the invoice as a seperate item. In which case you can write to your bank with a copy of the invoice and inform them that you have been charged the extra fee and request a refund. A long time ago when I was involved in this sort of thing there used to be a clear cut agreement between the merchant and the bank that the merchant would bear those fees and not the customer. I am fully aware that Thai merchants will usually add the extra on but I suspect it is still against their contract with the bank and your agreement with the bank. Whether or not you get the refund I don't know but maybe no harm in trying. The worst that could happen would be extensive head injuries caused by suicide. But do remember that 1.9% monthly interest equates to about 26% interest per year which is pretty steep in these times.

So you suggesting fraud?

[eastbay]

Uh oh- I just checked my bank, and THEY charged another 3% or thereabouts for a "foreign currency transaction fee".

So using the card wound up costing about $250 USD on a $4,000 USD purchase. I suppose that this would scale up or down in proportion, and be offset (or not) by points or whatever incentives the card is offering.

If you are planning to stay in Thailand (or anywhere outside the US. for that matter), you should really make the little effort it takes to get one or more cards with no foreign transactions fees. All of Capital One's cards, many from Chase and some from Citi and BofA avoid this fee....I have at least one card from all of those banks and they are used rather than moving money to Thailand or Singapore -- pays off in many ways (convenience, cost, points)...no reason to keep a card that charges a 3% foreign transaction fee...only worse thing you could do is choose to pay in US$ at checkout time, then you get screwed for yet another 3-5% (6-8% total).

Thanks eppic, I'm going to work on that. I use Wells Fargo (or they use me I should say!), and they seem to be about the worst for everything. I've been meaning to get away from them for years but.......

Edited January 30, 2015 by eastbay

[GOLDBUGGY]

You can draw Cash from your Credit Card at most banks. Rates are reasonable and only a few points below your Official Exchange Rate. The Maximum Daily Limit for a cash withdraw is 150,000 Baht. You can do this 2 days in a role but there is also a weekly limit on your Credit Card. So if you need more you will have to wait another week to do this all over again.

I am not sure if the weekly limit is the result of the Bank Rules, or Credit card Rules. But easier and better than paying a 3% Surcharge.

[WarpSpeed]

Like mentioned already cash from a credit card is the worst way possible, high interest, foreign exchange fees etc. on top of no bonus rewards.

[Swiss1960]

You can draw Cash from your Credit Card at most banks. Rates are reasonable and only a few points below your Official Exchange Rate. The Maximum Daily Limit for a cash withdraw is 150,000 Baht. You can do this 2 days in a role but there is also a weekly limit on your Credit Card. So if you need more you will have to wait another week to do this all over again.

I am not sure if the weekly limit is the result of the Bank Rules, or Credit card Rules. But easier and better than paying a 3% Surcharge.

- if your card has limits per transaction / day / week, then these are limits set by your card company.

- some card companies also set a limit of i.e. 40% of your total credit line for cash advance

- Mostly, if a transaction is within your limit, it will be approved

but what you have to check with your bank

- some banks have very high cash advance fees

- some banks have a "mark-up" for the exchange rate set by VISA / MasterCard / other brands

- some banks have horrendous APR on outstanding credit that is only limited by the law...

[Swiss1960]

Just my 2 cents worth because I've never tried what you are suggesting. However if the amount is within your daily limit and your American credit card actually works in the dealership and the dealer does actually charge you the extra 3%, or whatever, card processing fee, ask him to put it on the invoice as a seperate item. In which case you can write to your bank with a copy of the invoice and inform them that you have been charged the extra fee and request a refund. A long time ago when I was involved in this sort of thing there used to be a clear cut agreement between the merchant and the bank that the merchant would bear those fees and not the customer. I am fully aware that Thai merchants will usually add the extra on but I suspect it is still against their contract with the bank and your agreement with the bank. Whether or not you get the refund I don't know but maybe no harm in trying. The worst that could happen would be extensive head injuries caused by suicide. But do remember that 1.9% monthly interest equates to about 26% interest per year which is pretty steep in these times.

That is complete bullshit and you definitely have never been "involved" in the credit card area in the past 30y that I am...

• The Thai merchant has a contract with his Thai acquiring bank that defines the commission the car dealer has to pay for each transaction. If the car dealer recoups this fee by adding it to your invoice, his Thai bank could not care less... actually they will be happy about that, because the higher your payment amount, the more commission they get.
• Your home issuing bank that gave you the credit card has no whatsoever means to be involved into this business, the regulations of the credit card schemes (VISA / MasterCard) do not have any such provisions in them. Actually, your home issuing bank is also happy the higher the purchase amount, because THEY get more commission (called interchange) from the Thai acquiring bank, the higher the purchase amount...

some COUNTRIES have laws that would not allow the merchant (i.e. car dealer) to add the commission on top of the price, because they see it as "discrimination" of credit car buyers versus cash buyers, specially if such a top-up of the price is not officially published... but in most countries, therse laws allow the merchant to give a rebate for cash payments against the published price which gives the buyer a handle to negotiate...