Total Motorcycle Community Forums

Some states have "consumer protection" laws that prohibit retailers from charging more for a credit card purchase than a cash purchase - in those states, it would make sense for a retailer to not take credit, since that cuts 3% of the purchase price out of their margin. However, if they say they take credit cards for any purchases, the customer service approach seems like a reasonable way to try to persuade the dealer to not exclude large purchases.

macdaddy wrote:Some states have "consumer protection" laws that prohibit retailers from charging more for a credit card purchase than a cash purchase - in those states, it would make sense for a retailer to not take credit, since that cuts 3% of the purchase price out of their margin. However, if they say they take credit cards for any purchases, the customer service approach seems like a reasonable way to try to persuade the dealer to not exclude large purchases.

NJ is one of those states. You cannot charge a surcharge for credit. BUT, you can discount for cash. The end result is the same. You pay less using cash.

The CC companies don't want people thinking there is a surcharge. So that is why the advertisements and law are the way they are here.

mydlyfkryzis wrote:

macdaddy wrote:Some states have "consumer protection" laws that prohibit retailers from charging more for a credit card purchase than a cash purchase - in those states, it would make sense for a retailer to not take credit, since that cuts 3% of the purchase price out of their margin. However, if they say they take credit cards for any purchases, the customer service approach seems like a reasonable way to try to persuade the dealer to not exclude large purchases.

NJ is one of those states. You cannot charge a surcharge for credit. BUT, you can discount for cash. The end result is the same. You pay less using cash.

The CC companies don't want people thinking there is a surcharge. So that is why the advertisements and law are the way they are here.

Thanks MYD,

I thought that was true here in NJ but I wasn't sure. I'm not out to give anyone a hard time but I certainly don't like being pushed into something unnecessary.

I'm going to work it out with them on the phone today.

jonnythan wrote:If the place has an AmEx sticker showing somewhere, and they don't let you pay up front with your AmEx card, whip out your cell phone and call AmEx customer service right there in front of them.

Chances are that they'll give in before you even talk to anyone on the other end. If they don't, AmEx will make sure that they will be accepting the AmEx card for payment. Guaranteed.

Hi Johnny,

Yeah that's what I like about Amex. It hasn't happend often but maybe twice in my lifetime (once for me and once for my fiance`) we got ripped off by a merchant and they refused to credit us back for whatever reasons (long story) and Amex has always given us our money back even if it was out of their pockets and not the merchants.

I'm not out to give anyone a hard time or put any business under any undo pressure here. But I don't like being told what I can and can't do. If they just said "We'd really appreciate it if you paid in cash" well that'd be fine then.

I dont think it is a scam they are trying to pull. It is simple numbers. Amex is around a 5% charge for use. Visa or MC is around 2.5%

If you go into a dealership and grind down to the best price you can get, then try and use a credit card, you are essentially asking for between a 2.5 to 5% further price cut. You dont see the reduction of profit to the dealership, but the dealership does. Most dealers will tell you no, you cant have it, finance, pay cash or go somewhere else. I have seen that exact scenario play out numerous times.

Just as an update I'm paying with a Bank Check tomorrow

Does anyone know if I need to have my insurance ready when I buy the bike? Or can I get that afterwards since the bike is being delivered to my house?

Thanks!

In that case my biggest question would be who covers it while it's in transit to your house if something happens. That might help you decide assuming no laws where you are that require your insurance for the dealership to register the bike in your name.

that is a cash deal. The dealership will only need insurance so they can do your title work. If you are registering your own bike at the MVD, they wont need anything.

Your lender (the bank) may require insurance, but the dealership wont. Personally I would get insurance. New tires have the mold release compound on em and its a new bike.