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GG_The_Fly
02-10-2006, 12:27 PM
I was under the assumption that paying monthly lease payments by credit card was possible, but my father tells me that his mercedes lease cannot be paid with credit and must be directly linked with a checking/savings acct for monthly payments or be paid by check.

Is this true for BMW? I'm expecting delivery in the next month and am going to be majorly bummed if i can't get miles for the lease payments. . . :confused:

kyfdx
02-10-2006, 12:39 PM
I was under the assumption that paying monthly lease payments by credit card was possible, but my father tells me that his mercedes lease cannot be paid with credit and must be directly linked with a checking/savings acct for monthly payments or be paid by check.

Is this true for BMW? I'm expecting delivery in the next month and am going to be majorly bummed if i can't get miles for the lease payments. . . :confused:

Nope... no credit card payments... BMWFS makes their money off interest... No way they could pay 2 points every month to the credit card companies... they would go broke!

chuck92103
02-10-2006, 12:46 PM
Airlines miles are approx. 1% of cash purchases.

i.e. $10,000 dollars in charges yields $100 towards an airline ticket.

A typical domestic roundtrip ticket costs approx. $300. Yet you will use approx. 30,000 miles to get the free ticket plus some taxes thrown in. Assuming $30,000 dollars (1 mile for every dollar) charged to get 30,000 miles, times 1%, is $300.

Assuming your lease payment is $500 per month for 36 months.= $18,000

You are quibbling over $180 or $5 per month.

Someone has to pay the 1%, airlines miles are not free. Either you pay a higher money factor and get free miles or you don't. Simple as that. Companies who pay you airline miles charge you 1% more essentially to make up the cost.

Also, I would lose the airline miles card fast. No telling how much longer they will be valid.

My credit union gives me a free visa with 1% rebate, but I get to choose how to spend the rebate collected. i.e. Airlines tickets, cars, starbucks, clothes, etc.

Airline cards are so 1980's, get out while you can. You will be better off knowing that after you charge say $50,000, you can buy and airline ticket from any airline, or use the money for whatever else you chose that is listed in the cataloge. :thumbup:

pilotman
02-10-2006, 01:05 PM
I don't agree with your assessment of airline cards.

my card gives me a free domestic ticket at 24k (one mile per dollar). Domestic tickets include Hawaii and there are no blackout dates. Plus tickets are available on every major US airline through this card.

the interest rate is comparable to other credit cards and there is no annual fee.

I agree paying lease payments on a credit card is probably not worth it. However, buying your monthly essentials (gas, groceries etc) on a miles card is absolutely worth it *if* you have the right card.

You have to buy these things anyways, you might as well get some benefit. Also, using a credit card is much safer than using a debit/check card and offers you additional protections.

as long as you pay off the entire balance of the card every month, the card company doesn't get the juice and you get the float.

chuck92103
02-10-2006, 01:10 PM
I don't agree with your assessment of airline cards.

my card gives me a free domestic ticket at 24k (one mile per dollar). Domestic tickets include Hawaii and there are no blackout dates. Plus tickets are available on every major US airline through this card.

the interest rate is comparable to other credit cards and there is no annual fee.

I agree paying lease payments on a credit card is probably not worth it. However, buying your monthly essentials (gas, groceries etc) on a miles card is absolutely worth it *if* you have the right card.

You have to buy these things anyways, you might as well get some benefit. Also, using a credit card is much safer than using a debit/check card and offers you additional protections.

as long as you pay off the entire balance of the card every month, the card company doesn't get the juice and you get the float.

I agree with everything you just said. Except, use a card that gives you points to spend however you wish. That was all I said in my previous post. You don't need airline specific cards as you will get miles for the purchase of the ticket anyway. So keep frequent flyer plans, but use a generic diverse card that gives you options. The cost to use miles is only going up, the opportunity to use them is only going down, and the airline industry is on its last legs since there are so many airline miles on the books.

whiskey.org
02-10-2006, 01:12 PM
you can't pay a loan with another loan

chuck92103
02-10-2006, 01:16 PM
you can't pay a loan with another loan

Except in the case of a refi cash out on a home of an equity line of credit.

I do not advocate buying a car with a 30 year mortgage.:tsk:

pilotman
02-10-2006, 03:05 PM
I agree with everything you just said. Except, use a card that gives you points to spend however you wish. That was all I said in my previous post. You don't need airline specific cards as you will get miles for the purchase of the ticket anyway. So keep frequent flyer plans, but use a generic diverse card that gives you options. The cost to use miles is only going up, the opportunity to use them is only going down, and the airline industry is on its last legs since there are so many airline miles on the books.


then we're in agreement!

You prefer a card that has different types of rewards, but we both agree the cards are useful. I don't know that the airlines are having trouble because of mileage, they have all kinds of problems apart from that!

nowonder
02-10-2006, 03:47 PM
First I'll go on record saying CC's are evil, and should be avoided.

With that said, there are ways to do what you want...

idea 1: Some cards (like amex) offer billpay, and allow you to retain all the reward points.

idea 2: You CC, don't they mail you checks periodically?

--nw

HW
02-10-2006, 03:58 PM
i like my CIBC visa w/ 1% dividend (cash back) and CC's are good for keeping track of monthly expenses. plus they have the added benefit of extra warranty on goods purchased. unless there's some extra deal w/ paying by cash, i would always choose to use my CC.

chuck92103
02-10-2006, 04:56 PM
First I'll go on record saying CC's are evil, and should be avoided.

With that said, there are ways to do what you want...

idea 1: Some cards (like amex) offer billpay, and allow you to retain all the reward points.

idea 2: You CC, don't they mail you checks periodically?

--nw

Mine does not. It collect in your account like frequent flyer miles. You cash them in whenever you wish. For cash or purchase.

FalconGuy
02-10-2006, 05:28 PM
Once as a AAA member I discovered they gave free money orders, for travel I would imagine.

I thought maybe this would work, I got a $500 money order, put it on my Citibank Credit card. When the bill came I just made the money order out to Citibank and paid the bill.

Over the course of the next year or two I must have done 40K this way, then the dunning letter arrived, you will no longer accrue points in this manner and stop. I had a AAA office right next to where I work, it was so easy, so convenient. Shame it had to end. The people at AAA knew exactly what I was doing, every month 3-4 K in money orders......

They never took the miles back though:rofl:

Gotta hand it to cheapskates on the net for sharing that tip, maybe 1990?

Jspeed
02-11-2006, 02:08 PM
i like my CIBC visa w/ 1% dividend (cash back) and CC's are good for keeping track of monthly expenses. plus they have the added benefit of extra warranty on goods purchased. unless there's some extra deal w/ paying by cash, i would always choose to use my CC.
I use that too. Just keep in mind that you start getting 1% after $3000 for the year. You get one quarter to half a percent for the amounts below that.

HW
02-11-2006, 07:21 PM
I use that too. Just keep in mind that you start getting 1% after $3000 for the year. You get one quarter to half a percent for the amounts below that.
:eek: i had no problems reaching 3k/yr and i ended up getting back a pretty good $ figure. :yikes::cry::tsk: i didn't know how much i spent using the CC until i saw the amount that i got back at the end of year. not sure whether to be happy or sad... :bawling: