can you purchase a car with a credit card?

Answer 1

Most car dealers have a limit to what they'll accept with a credit card for a new car purchase. You need to check with the dealer as it varies from dealer to dealer.

Answer 2

The question isn't can you purchase a car with a credit card, the real question is why would you purchase a car with a credit card.

Yes, you can do it, but it is absolutely the wrong thing to do. The interest rates on credit cards are so high that you'd pay way more for that car than you would by going out and securing a loan for the car.

Answer 3

Theory's great and reality's scary.

The answer is "yes." But there are several big "ifs" attached.

People from all walks of life are inundated through e-mail or snail mail with long-term, low-interest credit card offers.

You know the type: 1.99 percent interest until the balance is paid off, or something similar.

Can you actually finance a car that way -- saving a small fortune in interest charges without taking a dealer's lowest rate and thereby letting you take advantage of any and all rebates?

Like I said, the answer is "yes." Yes, you can do it, and in theory it's a great idea. In practice, however, using credit cards to buy cars is fraught with pitfalls. Here are only a few:

Sometimes the fine print points out the offer is for an "introductory rate" that can rise after a few months and can hit 24 percent or more.
The "life of the balance'' offer often applies only to balances you roll over from competing credit cards and not to new purchases or cash advances. Of course, you could make the purchase on one card and then quickly transfer the balance, but things could go wrong there, too.
The "life of balance'' promise can change without warning -- if you're late with one payment, for example, the balance then can be jacked up to the highest rate allowed. Or, thanks to a common clause called "universal default," the credit card company can raise your rate sky-high if you are late with a single payment to some other credit card, or perhaps even to your cable TV service.
So, unless you are especially astute in managing your money and fastidious in paying your bills, a conventional auto loan, secured by the vehicle financed, is still the best and cheapest way to go. Short of paying cash, that is.

Answer 4

It's a dangerous idea. Let's say you buy this car at 3.99 percent and only pay the minimums payment on the card. That five year loan is stretched to ten or twentyy years. Do you really think that card will stay at 3.99 percent for ten or twent years. No way. 3.99 sounds like an introductory offer more than anything. In the end you pay more for the car then you would with a traditional fixed five year loan. Most cars loose something like 60 - 80 percent of their value in the first 4 years. Would you pay on something for ten or twenty years that looses 60 - 80 percent of it's value in four years. Bad investment. By the time you go to trade this car it'll be worth less than the balance on your credit card. Now you have a new car payment and a payment left over on your card. Bad idea. Don't do it. Save up enough cash to buy the thing. If you don't have the cash than buy a cheap used car and save for the new car. Buying a car with a credit card sounds like a good idea in the short term. If you look at the long term, you'll see it isn't. Imagine how much money you would have if you invested that credit card payment into a good mutual fund or money market. In ten or twenty years you'd be able to use cash to buy a car.

Answer 5

It's not wise. It's not wise at all, nonetheless, if you want to buy a car using a credit card, you should be able to. You may want to see if you can get a card with a very low interest rate.

Think about this though, if you buy a car on a credit card and you have to pay 19% interest on the loan, you are going to be paying SO MUCH for that car. An unbelievable amount extra, for that car.

Many car dealerships will not take credit cards because of the fees they will be assessed for accepting your card. If you do intend to purchase using a card, and you know that they take credit cards (maybe call ahead and ask, but don't tell them who you are), DO NOT let the salesman know that you're planning to make the purchase with a credit card, otherwise, he will not give you his best price. He will make sure that he has that 3% extra on the price he gives you, to cover the fees he's going to get whopped with when he charges your card.

Answer 6

It is against federal credit and lending laws to purchase a vehicle using a credit card, but it is a law that in most places is not enforced. An honest car dealer will tell you to go to a bank and get a cash advance and come back and pay for a car. A semi honest dealer might just take you card and process. This is not a big no no in the car industry.

Answer 7

I did.
Of course I paid it off in a couple of months, and it was only a 10 thousand dollar car (used)
If you can't pay it off very quickly, you should never use a credit card to purchase a car, because the interest rates on the credit card will be 2-3 times the interest you would pay on the auto loan you would get. Sometimes, the dealer has very low or zero interest auto loans as a special incentive. So, if you plan to pay it off longer than 3 or 4 months, go with dealer financing!!!!!!!!!!

Answer 8

That depends, most car dealers will put a cap on the amount, because the Credit Card companies, not only charge you to use them, but they charge the places that except them as well, what a sham, the credit card companies are making money on both sides of the transaction.

Answer 9

Several factors....

Many credit card holders do not have sufficient credit limit on your card. Check to make sure your cards are ok.

Many car dealers puts limit on how much you can charge on your credit card to pay for the purchases. This is done so that they don't have to pay the fee called a "discount rate." Some of my local dealers won't let you charge more than 6000 dollars. Ask your dealer.

If you are trying to use credit card so that you have better protection from fraud, mechanical problems, warranties, returns, etc, read your agreement. Almost all cards nullify those clauses for car or other transportation purchases. (ie. cars, bikes, etc)

If you plan on making payments, instead of lump sum payments, read carefully. Low introductory rates may not carry over to automobile purchases.

Personally, I wouldn't unless I plan on paying it off at billing date.

Answer 10

Sure you can. Not sure that you would want to though. It's better to put down a down-payment and get the financing deal that the dealer gives you. And you can pay the monthly payments with a credit card. But that 19%-25% credit card interest is a killer, so watch out.