I am looking at purchasing a new vehicle. Currently the interest rate on my credit card is 4.9% and the interest on a new auto loan would be at least 6.9%. Can I use the credit card for a new auto purchase or at least a substantial down payment?
2006-09-27 04:19:35 · 13 answers · asked by Russell B 1 in Cars & Transportation ➔ Buying & Selling
Yes, most dealers will accept credit cards. Ask before purchasing.
2006-09-27 04:22:32 · answer #1 · answered by hsueh010 7 · 0⤊ 0⤋
Sure, if your credit limit on the card is high enough, you could put the whole thing on the card. But beware. Read the fine print that takes away what the big print gives. Often times they (credit cards) will offer a very low percentage rate, but then limit how long it lasts, so you might find yourself paying higher that the 7% after a time period. Also be aware that some credit cards will put the interest rate to a default number, sometimes as high as 12 to 18% or more if you miss a payment for any reason during the term of the loan, which would be until your card reached a zero balance again.
I constantly get offers from credit cards, starting about now, that I'm good a loan of up to (some high figure) at only (some low rate) until next year. Then you realize, next year is about on us.
Christmas is 89 days from now, new year's eve 96. (as of Sept. 27)
2006-09-27 04:31:30 · answer #2 · answered by oklatom 7 · 1⤊ 0⤋
We recently purchased a new car and wanted to put the entire down payment on credit card because the money I was to use for the down payment would be tied up for another 3-4 days. The dealership only allowed us to put 2500 down on the credit card because of the service fees they would have had to pay otherwise.
If you are interested in purchasing a car, check with the dealership on their cc policy. I saw a few other answers on here that state that the dealerships do allow it.
Just remember the promo rates on cc's can be very tricky. Even if you have excellent payment history but forget to pay the bill by one day you may be considered in default, at which time your rate will automatically jump to 12-15% or more. I just received an AMEX offer with that in small print. We pay all our bills on time, but sometimes you just forget by a day or two.
Also, be sure to check out any promo rates from the dealers on the car you're considering. Sometimes they are even better than the 4.9% rate on your cc.
2006-09-27 05:58:16 · answer #3 · answered by Stumpy 4 · 0⤊ 0⤋
Yes, but most dealerships are going to have a limit as to how much you can charge. My dealership has a limit of $2000. So if you want a cheap car, there you go. I would say if you have to charge the down payment. Don't do it, You will be paying interest on it and you would be paying interest on the money if it was included in the loan. Usually $1000 on a 60mo loan is about $20 worth of financing. Now this all depends on your credit. But do you want to be making payments on a credit card and a car loan??? I wouldn't.
2006-09-27 08:28:10 · answer #4 · answered by cargrl 3 · 0⤊ 0⤋
Sure could. I know people who have purchased Lamborghini's online, so I figure you could purchase a vehicle as well. But watch out for all that interest buddy, it could be cheaper to just deal in cash to avoid the 6.9 interest rate on repaying that credit card.Youo obviously have credit...apply for a loan at a decent bank, the interest rate will be cheaper than the rate for the card...saving you bigtime.
2006-09-27 04:24:55 · answer #5 · answered by Ronijn 4 · 0⤊ 0⤋
I used my American Express to put over $5K down on my new car when I bought it, so the chances are that you will be able to do the same. Just make sure the interest rate is not an introductory rate, because you would hate like hell to have it jump up on you.
If I remember correctly, the rate I got on my auto loan was down around 4% or so. It all depends on your credit rating and how much you put down.
2006-09-27 04:34:29 · answer #6 · answered by JSalakar 5 · 0⤊ 0⤋
It sounds good but I wonder if such a high balance on a revolving card would affect your credit score. I used an American Express card once but I paid it off in 30 days.
The other problem is will the auto dealer accept it. He may have to pay up to a 5% fee.
2006-09-27 04:25:07 · answer #7 · answered by Barkley Hound 7 · 0⤊ 0⤋
Yes you can.....AND you dont have to worry about your credit rating...the only thing you need to know is that you want to keep your total balance at 75% or less of your total credit limit. Even with that really....it doesnt make a difference...I would do it also
Good idea
ps..
we have people coming in to my dealership all the time buying vehicles on credit cards....we do charge 2.5% surcharge because of the charge to us and the customer usually understands that.
BUT...you have a choice to AVOID that surcharge....just get a CASH withdraw off your credit card....this way the dealership doesnt have to deal with that 2.5-5% surcharge
2006-09-27 04:52:32 · answer #8 · answered by B_Auto 2 · 0⤊ 0⤋
Yea you can...you can buy on your credit card if you have the limit.
my husband works at a car dealer..MANY people buy with credit cards..or put a substantial down payment on there credit cards and finance the rest
2006-09-27 04:31:29 · answer #9 · answered by mommy2savannah51405 6 · 0⤊ 0⤋
Yes most dealers take credit cards now.
2006-09-27 04:28:37 · answer #10 · answered by BUPPY'S MEME 5 · 0⤊ 0⤋