I am not interested in the wisdom of financing a car on a credit card. I am well aware of the risks and implications of financing a vehicle long term on a credit card, and that is not the issue at hand.
I recently had a conversation with a business associate about using a charge card to purchase a vehicle, primarily to benefit from credit card rewards programs and purchase protections. We both have no-limit Amex charge cards, and the capacity to make such a purchase without incurring revolving debt.
He attempted to purchase a new truck for his business with his card, with the full intention of paying it off when the bill came. When he attempted to make the purchase, though, the dealership said they were not allowed by law to sell him a vehicle on a credit card, regardless of his ability to pay for it, and alluded to some anti-drug trafficking or money laundering law that they were unable to reference.
I have been unable to locate such a law, and would like to know if anyone else has heard of it or can reference it. The amount charged to his card was capped at $5 or 8K, I don't remember which.
Is there law to back this up, or was it a dealership trying to avoid credit card transaction fees?