Car is one of the essentials of life as it makes commutation easy. Can you buy a car with a debit card? It is very costly, and it is not easy to make such a significant transaction at once.
Let us discuss buying a car with a debit card and things to consider. Besides this, you will also know how to buy a vehicle without a debit card.
Is it Possible to Buy a Car with a Debit Card?
So you are planning to buy a new car or a used car. It sounds great? Are you going to pay with a debit card? There are some restrictions on payment through debit cards.
When we swipe the card on the machine, there are some charges the leadership has to pay. Debit cards have a specific spending limit, and we cannot send a large amount in a single transition.
Thus, the dealer has to swipe the card 3-4 times, and on each transaction, a certain amount is deducted. Therefore the total fee can be hundreds of dollars.
When dealers sell a new car, they do not get much profit, and when you pay by debit card, a portion of their earnings is cut in the fee. Dealers make only a tiny portion of their revenues from selling a car.
Their primary source of earnings is repair, warranties, and financing. Thus, they fear loss, and if they start taking payments through debit cards, they have more chances of loss.
However, some dealers allow you to pay the amount of the car through a debit card.
Things to Consider if you are paying with a Debit Card
Your dealer has an issue with the debit card, and you will make payment through a debit card. Some people have not experienced it and do not know about taxes and registration charges.
There are some points that you should consider. Let us discuss them one by one
1. Daily Spending Limit
All banks have set specific rules and regulations. Similarly, banks have a particular limit of transactions. You can take only a certain amount, and if you try to make more money than your limit, the machine does not respond.
This function has many benefits. Suppose your card gets stolen, or someone hacks it, and they will not take away all money from your account due to the card spending limit.
However, you can ask your bank to remove the limit for a day and inform them that you will buy a car. Otherwise, you will not be able to buy a car because your payment will be incomplete.
Mostly bank spending limit is $2000 to $7000 per day.
2. Be sure you have enough Cash
You must check your account balance before buying a car as the price of the car is very high. Some people buy a car with money equal to the cost of the car.
However, you should have more money as there are other charges. For example, you have to pay the registration fee and other taxes.
Added the amount of all these expenditures are very much and ensure you have enough money.
The Benefit of Baking Payment through a Debit Card
When you buy a car with a debit card, you can save money. Read ahead to know how?
No Interest from the Bank
One benefit of paying for a car through a debit card is that you do not have to pay interest. Thus you can save money as money is transferred from your account directly.
However, few dealers accept a debit cards for payment as they do not profit.
What if you Cannot use a Debit Card?
Some people do not want to make payments through debit cards. If you also do not want to make payment for the car through debit, there are many other options, and you can choose any of them which is the most suitable for you.
1. Pay with a Bank Account
Your car dealer is not accepting cards, and you can make payments through a bank account. Arrange a money transfer from your bank or union to the dealer account.
However, this process is durable, and transactions may complete in 2-3 working days.
2. Use a Cashier’s Cheque
The other best option for a car payment is through a cashier’s cheque, and dealers know there will be no check bouncing. Worst of all, your account can hold if you pay through your cheque.
So avoid holding on to your account by paying through a cashier’s check.
3. Use a Money Order
The money order is the best alternative to the cashier’s check, as you can make a complete car payment. Moreover, you can send it to many places, for example, western union, and grocery stores.
4. Pay via Wire Transfer
The last debit card alternative for a car payment is a wire transfer. However, you have to pay $15 to $30 for a domestic wire transfer to transfer money through it.
However, it is best for dealer purchases only, and primarily private sellers disagree with this payment method as some people do not like providing much information.
Steps to Buy a Car with a Debit Card
Buying a car is always fun, and if payment is short, you enjoy it more, as some transactions take time. You can complete your transaction within a few seconds with a debit card.
Follow these steps to buy the card with a debit card
Check your Card Limit
First, check your account details on google or visit a nearby bank and ask them to tell you the card limit. If your card limit is enough to pay the amount of the car, you can proceed.
If your card limit is less, ask the bankers to remove the transaction restrictions for a few hours until you pay for your car.
Ask the Dealership if it Accepts the Card.
On each transaction, leadership has to pay 3% charges; thus, you must ask your dealership if they will receive payment via debit card. This fee rescues the total profit of the leadership that it was planning to earn.
Pay for the Car
Now they will count the total amount, including car price, tax, and registration. Now swipe your card, the transaction will complete in a few seconds, and you will get a receipt.
To Sum up
In a nutshell, it all depends on whether your dealership wants to receive payment through a debit card. If your dealership is not willing, you have multiple options.
If your leadership is willing to make payment through, check certain things. There should be a balance in your account, and you must check your card’s daily transaction limit.
If you still have difficulty making payments through a debit card, please contact us in the comment section below. Thank you for your visit!