Can you use your credit card to help with the down payment on a car?

Answer 1

That is a very foolish thing to do. You pay so much extra interest on credit cards it will drastically increase the amount you pay for your car.

There are so many deals to be had this time of year surely you can find one with a low or no down payment. If not, buy a lesser priced car and drive it for a year or so, then trade up.

Answer 2

You can but the interest rate may be higher than the actual interest rate that the bank/loaning company will give you. The average interest rate for credit cards right now is about 15-18%, even if you have good credit. The average rate for banks and auto companies is about 6-12% (much better). You can buy a car with zero money down but your payments might be a bit higher or you could buy a car that offers 'cash back' that can be used as your 'down payment.' Good luck, buying a car can be a long, confusing process!!

Answer 3

Absolutely Not! Use public transportation and save until you can afford a car. If you need to use a credit card for the down payment, sounds like you really cannot afford a car at this time. Save your money and when you get enough, buy a certified used car.

Answer 4

Yes you certainly can. I did this on my Amex Gold Card to get rewards. It is a charge card so I have to pay on time.

1. You should only do this if you fully pay your credit card bills every month. And you want to do this if you have a cash rebate credit card or a credit card that lets you earn reward points.

2. Call the credit card company to inform them of your intentions in advance and get approval. (I assume you know your credit limits as well).

3. Check with the car dealer how much payment will they accept on credit cards. On my last purchase, I was told they would accept up to $5000.

To sum up - definitely doable - and makes sense if you pay your card in full every month. Otherwise, get a pre-approved auto loan in advance before you even get to the car showroom.

Nick

Answer 5

Not any more - you used to be able to, but there were some lawsuits where people used a credit card for the downpayment and then put a "hold" on it that the credit card companies discountinued allowing that as a purchase, because it put too many dollars at risk. People would claim that there was some "defective" part in their car, so they wouldn't have to pay the bill - it was ugly.

Answer 6

Can you -- YES.

Should you -- No. Not unless you are quite comfortable paying about $300.00/mon maintaining the car (oil changes, insurance, and gas) and then the car note on top of that and THEN paying interest on the down payment you didn't have cash for.

You might want to try the Janet Jackson approach -- Tell the dealer "Let's Wait A While" as you gather up cash for the down payment OR you can flip a nipple to the dealer and see if he is interested in a fee-for-service arrangement.

Answer 7

Yes you can. But it maybe better to get a loan from the bank. Unless your interst rate on your credit card is really low, then do it.

Answer 8

ok let say you have a apr of 0-5 percent. you get a cash advance and make sure it is only going to be that percent and a small amount. but i dont recomend it as you can get a car for no money down.

Answer 9

Yes. If your credit limit is high enough you can pay for the whole thing with a signature.

Answer 10

I guess you could if you used one of those convienence checks they are always sending you but probably not a great idea because sometimes in the tiny print they say that it will be treated as a cash advance and your rate will be really high.