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Planning to buy car on credit card - here are my calculations

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Deal Subedar
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Hi everyone

I'm planning to purchase Tata Curvv.ev Emp+A (22L ex showroom).

I am planning to buy it on Magnus Burgundy, completely on the card. 

I visited the branch because getting the burgundy is hard.
I threw some trump cards like last ITR of 70+L, 19L limit on ICICI card, salaried, etc. and the Axis guy seemed to drool.
I hope I get the card with a good limit.

Here are my calculations:

My cost:

Magnus Burgundy Fees: 30,000 + 18% GST = 35,400

Dealership MDR surcharge (considering 1.5%) = 1.5% of 22,00,000 = 33,000

Return:

12 Edge points per 200 upto 1.5L = 1.5L / 200 * 12 = 9000

35 Edge points per 200 above 1.5L = (22L - 1.5L) / 200 * 35 = 358750

Total points = 9000 + 358750 = 367750

Redemption:

Accor transfer at 5:4 (upto 2L points - Group A) = 2L * 4/5 = 1.6L Accor points

The Accor transfer limit (Group A) will reset in Jan 2025 (it is 2L per calendar year for Magnus burgundy)

So I can transfer the rest of the points (1.67L) in Jan 2025

Rest points 1.67L * 4/5 = 1.34L Accor points

Total Accor points by Jan 2025 = 1.6L + 1.34L = 2.94L

Each Accor point approximately has a value of ₹1.8

So, 2.94L * 1.8 = ₹5,29,200

So basically, I can book Accor hotels worth approx ₹5.3L by Jan 2025.

My total cost = 35,400 (card fee) + 33,000 (merchant MDR) = ₹68,400

So, I'm getting a return of ₹5,29,200 at the expense of an extra ₹68,400.


Please let me know if my calculations are correct.

This seems like an outstanding return rate.

I’ve mostly used lifetime-free or low-fee cards until now and such a return rate seems too good to be true.

I doubt I'm missing anything or any terms and conditions I should be aware of.

Thanks in advance.

Please let me know if there is any other card to get a better deal with a low chance of plan failure.

Also, please help me out with the following:

- The easiest way to know the merchant MCC code before the transaction

-  How to negotiate the best MDR rate for credit cards. Talked to several dealers and all of them seem to be quoting 2 or 2.5% (one of them said he can try up to 1.5%)

- Any other catch, things to take care of that might be missing.

Top Comments
Benevolent Benevolent
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Mostly txn will not go thru, once I tried to pay 4lacs at one place but after 1lac they blocked my card, called cc and unblocked yet next txn did not go thru, again called same result, finally gave up.

22lacs txn IMO its not possible esp for new card. 

Axis is unreliable, absolutely no support if anything goes wrong, they will never give back RP or CB. It would spoil new car fun.

Deal Lieutenant Deal Lieutenant
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okay i can give a suggestion, 




1) just buy some car wipes or cleaner from the showroom using your credit card :) 


2) and ASK THE SALES PERSON ABOUT THE SERIAL NUMBER OF THE POS DEVICE and note it down:)


3) wait 2 days for transaction to settle and check reward points and also call customer care to verify MCC


4) next time when you get to purchase the car,find this specific pos device and viola MCC is same


viola you succeeded


0) before all this check with your bank on how much quantum or capp of reward points applicable on lakhs of transactions

Investor Guru Investor Guru
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Why Tata btw???

Deal Subedar Deal Subedar
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If you'd have asked why electric, I would have an answer.

Why Tata? Lack of options in electric.
92 Comments  |  
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Avant Garde Avant Garde
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check any CAP on reward points (confirm over Email with CC)

Deal Lieutenant Deal Lieutenant
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image

Finance Mentor Finance Mentor
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kiski phati?
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Deal Lieutenant Deal Lieutenant
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Don't forget the 22L bill payment using Innopay, 11k cashback 😂

Just kidding, I didn't know that credit card is so much rewarding.

Deal Subedar Deal Subedar
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even I did not.. started researching and got this gold mine 😅
just want to be sure!
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Deal Subedar Deal Subedar
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Yes that is why looking for the best way to identify MCC code

View 1 more reply
Generous Generous
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car dealer wont allow this to happen , they will bring their personnal QR code or even relative card swiper 

- you may get done thing smoothly online on tata website , pay and collect the car from showroom , email TATA in advance see what help they can do 

-but for online i think u will have to do math again

Deal Subedar Deal Subedar
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Tata directly doesn't take payment for car.

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Deal Cadet Deal Cadet
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good calculation, hats off to you

Deal Major Deal Major
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70 lac ITR? Are you CFO in your company?

Deal Subedar Deal Subedar
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Nope. Redeemed some long term stocks. (but still earning well 🙂)

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Deal Subedar Deal Subedar
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bhai! remember you’re dealing with axis. they may close cards anytime stating silly reasons. all the best
Deal Subedar Deal Subedar
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sweat sweat
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Deal Subedar Deal Subedar
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Salute for your calculation but what if card gets devalued ? Significant amount of risk is involved .. risk se ishq hai to kood pado tata curvv lene sweat_smile

Deal Subedar Deal Subedar
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yes, there are multiple risks like devaluation, account blockage, wrong mcc (although will make sure I don't fall for this) and some capping.. and what not
Budding Star Budding Star
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Imo that much high value transaction on your new axis card will directly lead to card blocking and points forfeiture


Also don't forget to confirm max. Cap from higher customer support in writing in mail


Also do check out some posts from dd and technofino as you can get direct customer review.

Deal Subedar Deal Subedar
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multiple people saying account block is now adding some fear 😪

will RBI ombudsman help (given that I'm genuinely making the transaction and not gaming the system)
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Benevolent Benevolent
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Do check the MCC code at dealer end..

These days some are using Rent or Fuel MCC codes...😂

Finance Mentor Finance Mentor
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ee kya bolat ho? car ke jagah petrol milga?
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Benevolent Benevolent
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Mostly txn will not go thru, once I tried to pay 4lacs at one place but after 1lac they blocked my card, called cc and unblocked yet next txn did not go thru, again called same result, finally gave up.

22lacs txn IMO its not possible esp for new card. 

Axis is unreliable, absolutely no support if anything goes wrong, they will never give back RP or CB. It would spoil new car fun.

Deal Subedar Deal Subedar
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I'll pay next day.. no hurry getting the delivery.. 

and blocking the card with just 1lakh .. that is unheard of..
1 lakh is a common value.. 
there must be something else.. 
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Blaze Blaze
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First make a small transaction like 10K and wait for bill generation to check actual reward point calculation.

Blaze Blaze
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I made 5L transaction for My Car booking yesterday by CC

Deal Subedar Deal Subedar
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which card? 

Can you share your calculations?

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Deal Subedar Deal Subedar
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I think card joining benefit is missing in your calculation

Deal Subedar Deal Subedar
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yes did not take that into account.. that is not much
Deal Cadet Deal Cadet
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technofino is getting promoted here.. 😂
Benevolent Benevolent
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Whoa! I was unaware that a credit card could be used to purchase a car. flushed Just a random query, what's your CIBIL bro?

Deal Lieutenant Deal Lieutenant
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People are buying apartments here with credit cards not just car -bike.... And yeah limited to some builders 


And overseas a guy purchased a FULL COMMERCIAL BUILDING with Credit card approx 600 crore 😤🤨


While a Chinese one bought something like 1400cr worth from credit card.... 🤑🤑



It's just a car here or a apartment


View 9 more replies
Investor Guru Investor Guru
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Why Tata btw???

Deal Subedar Deal Subedar
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If you'd have asked why electric, I would have an answer.

Why Tata? Lack of options in electric.
Comrade Comrade
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What a calculation

Mobile Guru Mobile Guru
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Are they not levying 2% on CC payments?

Deal Subedar Deal Subedar
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Please check again. I've added 1.5% in calulcations. (being optimistic)
View 17 more replies
Hotshot Hotshot
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You can check my thread .I bought brezza for 14 lakh without any mdr charges. you have to negotiate. I payed through 3 cards as my max limit was around 9 lakh in diners /neu. .got neu coins at 1.5%. they had sbi pos where diners failed.

https://www.desidime.com/discussions/buying-car...

Deal Newbie Deal Newbie
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Max loss if your calculations completely fails is 1 lakh and reward is upto 5lakh . You wants a car because you have enough cash to pay upfront then ok.

Deal Subedar Deal Subedar
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yeah risk is there.. just trying to minimize that as much as possible
Deal Cadet Deal Cadet
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I have SBI cashback card. I wanted to buy jupiter  and total cost was within the limits.  But the dealer said No. Not possible thorugh credit card.  😌

Deal Subedar Deal Subedar
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Two wheeler-dealers can be finicky.
Car dealers openly accept card when MDR is paid by customer
Deal Newbie Deal Newbie
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U can negotiate MDR charges also

Deal Subedar Deal Subedar
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will try but the dealers are quite adamant on new car launch with nothing to offer from their end. 
they are like "lena hai to lo nahi to jao"
Helpful Helpful
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I read to post and only one question came to my mind -

what this person is doing on DD?
Deal Subedar Deal Subedar
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haha..  bhai desidime is a great community! I started from a very humble background.. old habits die hard - once a chindi.. always a chindi 😂
Deal Captain Deal Captain
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You can buy a Nexon and save some money instead of going for the coupe suv ki lehar.

Deal Subedar Deal Subedar
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There are major upgrades that curvv provides over nexon.. I don't find coupe is a hype and not going for curvv only for design.

  • 55khw batter (+15kwh from nexon)
  • faster charging (70kwh peak, may be a bit less)
  • bigger trunk
  • ADAS
  • new acti.ev platform
  • design is great of course 
I think the extra money being asked for is totally worth it
Deal Newbie Deal Newbie
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So no flights, only accor points ?

Deal Subedar Deal Subedar
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flights might not give that kind of value return
Deal Newbie Deal Newbie
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I did a transaction on showroom for my items

i got an eligble 1.5%for ASL motors

see if that helps .. also let us know how did u proceed finally?

IMG1587

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