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Use a credit card to purchase car?
Old 02-28-2019, 07:06 AM
  #1

Although I plan to keep my car til it dies, it is old so I am planning for a replacement. I have a credit card with no balance and a high limit.

Would this work:

Purchase car using the card so I get a ton of rewards points then pay it off in full when the bill comes.

It sounds like a no brainer. Am I missing something or is this the way to go?


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Old 02-28-2019, 07:15 AM
  #2

Possibly. Not all cards that give points give them on all things. Check with your CC company.

Also, not all places will allow CC to be used without fees. For example, universities will charge up to 4% of the amount put on CC to pay for tuition, fees, and boarding. The reason is that they are charged by the credit card company. So, they make you pay that fee for the convenience of using a CC rather than doing an electronic transfer from our bank account or using a check.

So, if there is no charge and your CC company gives points for anything, it will work if you are diligent and pay off the card on time.
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I don't know about buying a car
Old 02-28-2019, 07:15 AM
  #3

and don't know all the details of credit card use, but when my DD was in college I always paid the tuition with my credit card. Then paid it off in full from a savings account. I used the points for so many great weekend trips, etc. It worked for me.
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Old 02-28-2019, 07:19 AM
  #4

The dealership probably has a limit. When we bought our last car, we wanted to do the same thing since we get 2% back on our credit card and had the cash to purchase the car outright. The dealership would only allow us to put $5,000 of the cost on a credit card. So, we still got $100 back on our credit card but it would have been nice to be able to put the whole thing on a card.
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Old 02-28-2019, 07:27 AM
  #5

Yes, I think there is a limit to how much you can put on the card. But however much you can, I would totally take advantage of that!


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Old 02-28-2019, 08:39 AM
  #6

Yes, they usually have a limit. Also, in the case of paying college tuition with it ( or my property taxes) in both those cases I didn't use my credit card because the places charged a fee that was a % of the charge, which then wiped out the benefit of the cash back, just fyi.
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Old 02-28-2019, 08:54 AM
  #7

I know someone who did this, but it was years ago. They called the credit card company beforehand and it worked out. It was a used car, if that makes any difference. But it was a Range Rover.
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Old 02-28-2019, 11:22 AM
  #8

Yes, I've thought about doing that too, just as long as you can pay it all off on the 1st due date so no interest accumulates. That's a great way to get a TON of points. I don't see any roadblocks with doing it.
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Old 02-28-2019, 11:27 AM
  #9

My parents did that twice!

They bought a truck (new) and a car (used) using their Discover card to get the cash-back reward. They already had the money set aside to pay the vehicles in full, so they paid the card off the following month, so no interest paid.
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Old 02-28-2019, 12:37 PM
  #10

I recently had saved enough money to pay off a used car in full. The dealership let me put 5000$ on my credit card. I wanted points too!


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High limit
Old 02-28-2019, 04:50 PM
  #11

I never thought about this because I never had that kind of credit limit.
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I bought a
Old 02-28-2019, 04:55 PM
  #12

Nissan in June. My credit card company would only let me charge $5000 on it for points. I was bummed!
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2 credit cards
Old 02-28-2019, 05:14 PM
  #13

If your credit card has a limit on what you can charge on it, think about putting some more of the cost of the car on another credit card that you may have that has points or rewards. People often do something similar in stores when they have a gift card and are using a credit card to purchase something.
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Old 02-28-2019, 06:35 PM
  #14

I wanted to put my solar panels on my credit card and get points (about the price of a fairly expensive new car)- but the company that installed them would have charged a % fee for putting it on the card cancelling out any benefit of points.

I would call the dealership first and see if they would let you do it without extra charge. If so, then call your credit card company and see if they would allow it as well.
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Old 02-28-2019, 07:16 PM
  #15

My dealership only allowed $2,500.00. Tried the same thing...
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Old 02-28-2019, 07:19 PM
  #16

I just bought a car a couple of months ago and had the same idea. I looked it up and saw that "maxing out" your credit card impacts your credit, even if you pay in full. Now I was on a deadline and didn't have time to super research that to see if it's actually true, but that's what I read. I'm sure one time that is paid off quickly wouldn't have any long term impact, but I'm also looking at potentially buying a condo (first time buyer) and certainly didn't want even a blip on my credit report for that.
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