Is it possible to buy a car with a credit card?

robby · #1 (**permalink**) 02-18-2005, 03:43 AM

Does anyone know if it is possible to purchase a car with a credit card?

MrsChambers · #2 (**permalink**) 02-18-2005, 09:05 AM

I have some friends, and they wanted a car from a private party, so they took a cash advance on their credit cards to pay for the car. Turned out to be a BAD idea for them because the car turned out to be a lemon, and they still owed that money to the credit cards for a car that they couldn't drive.

are you talking private party here or at the dealership?

I would have to assume that the dealership indeed takes credit cards, so I would have to say yes, as long as they take credit cards.

miclason · #3 (**permalink**) 02-18-2005, 04:35 PM

but...wouldn't a loan for a car be much more sensible, talking about interest rates??
Here in ES, a loan for a new car has an interest rate of 5.X%, while the lowest credit card carries interest of about 19%...and, if you can't get a loan to buy the car, you probably can't afford it!...(my finances ARE a mess! I can't get credit right now, and I know that it's because I can't pay it back!)

Tree0164 · #4 (**permalink**) 02-19-2005, 05:05 AM

Yes I a credit card for the down payment for a car but was given a hard time at the dealership on this. Expensive from a fee perspective for the dealership.

I was waiting for the money from a huge bonus check and didn't have the cash in hard.

You are much better off from a financial perspective getting a car loan rather than credit card. You will look in most likely a lower rate even if you have bad credit. I beleive the interest is calculated differently as well-but do not quote me on that. Credit card rates may have teasers rates but remember they offer change.

robby · #5 (**permalink**) 02-19-2005, 12:56 PM

I'm interested in putting my down payment on my credit card to get the bonus awards that the credit card offers. I would pay it off the next month so I won't get any fees, but I had never heard of anyone doing this so I didn't know if it was possible or not.

Tammy · #6 (**permalink**) 02-19-2005, 01:34 PM

We just bought a car yesterday for cash - but yes someone was in there putting their new car on a credit card. They said they couldn't get a loan because their credit was bad, but had enough balance to do it through the cc......

Tree0164 · #7 (**permalink**) 02-20-2005, 04:46 AM

Robby if that is what you are doing for than I would do it. Do not let them know that you will be paying by credit card for a down payment because they may raise the price that you have decided on. That's illegal and they could lose thier agreement with Mastercard/Visa if they do that.

Armywife · #8 (**permalink**) 02-20-2005, 05:05 AM

A few years back hubby purchased a used pickup truck and made the down payment with the friendly "no fee for 6 months" credit card. We were in the middle of refinancing so he figured he'd pay the bill in full once we received our dispersement- boy what a nightmare that was! After a whole mess of bills wiped out our "dispersement", hubby was stuck paying the credit card. Long story short the credit card company went from charging 21.00 finance charge on the big balance to 236.90 balance in addition to minimum payment (307.12 being the "minimum payment"). This lovely inflated number was a result of a penalty APR since I had made ONE partial payment and didn't notify them in advance. They considered it a no no

Fortunately we've since paid the bill in full but I've learned my lesson. Unless you have the money to pay the bills in full at the end of the month, STAY AWAY from credit cards!!!!!

Barb

barbd00 · #9 (**permalink**) 02-21-2005, 09:15 AM

yes and if you have an amazing relation ship with your credit card company it might be worth it. Except for good credit a lot of car companies offer 0% or really low financing so it might not be the best way.

Back when new car interest rates were sky high (okay 10% for good credit) my mom had a platinum card with a $30,000 limit and 4% interest. She talked the loan company down to 3.5% so she wouldn't use her card

Just have to know your options

PennyPincher · #10 (**permalink**) 02-21-2005, 01:21 PM

Robby,

When I bought my new car just about 2 years ago, I put about $4000 on my credit card for that reason ~ to reap the rewards. I had the cash to back it up, and paid the downpayment off a month and a half later when the bill came, so I earned another month of interest on my money in ING. Good setup. I suggest it if you are wise with your cards & cash.

To share some good news: I paid off my 5-year loan in 23 months! I just paid off the car in full last week ~ nothing like getting a zero balance letter from the bank. And the title is on the way.

I worked so hard to do that because I want my only debt to be that of my home.

Good luck, and congrats on getting a new car!!!