Buying a used car from a dealership with a CC?

[B335is]

Every dealership I've dealt with has gladly accepted credit cards for down payments and even whole vehicles, it's not as uncommon as people think.

If I was looking for an old pickup for under $5k I would consider using a card only because I already have an auto loan and don't want two auto loans reporting on my CR and I could pay off $5k quickly if I needed to.  It really depends on the individual circumstances if you were going to pay for a car with a credit card, so I can see both sides to the argument.

[duyen28262]

We went to a wholesaler last week and bought a used car for $3,500. I split it into 2 cards ($2,000 and $1,500) on last Tuesday, no problem at all and the balance cleared in my account on Saturday. No additional charges from the dealer. We took the title and paid tax/fees/plate etc. at the DMV.

This dealer uses a local financing (Tico credit) and he said APR is about 29.99% !!! We did not want to deal with this and rather paid with a CC, took the title, and pay overtime

[user5387]

Buying a car with a CC rather than with a regular auto loan implies that you are taking on revolving debt rather than installment debt.

These two kinds of debt are scored quite differently.

Also, because an auto loan is secured, the APR is typically quite a bit lower.

[thatoneguy28]

i bought a used car today for my brother.the car dealership was a buy here pay here lot.i put the whole amount which was 1500 total on my discover card and i didnt have a problem with it at all.

[Blodreina]

Sounds like a brilliant idea to me.  Saves you from multiple HPs and if, as others have stated, you follow through on paying before intro ends and the dealer allows it, then go for it.

Auto loan HPs still hurt you, even if Fico technically scores them as one.  I've read many times, here and other forums, where people have to recon CC (and other?) applications to explain their inquiries.

[Carrie_in_Pa]

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@thatoneguy28 wrote:

i bought a used car today for my brother.the car dealership was a buy here pay here lot.i put the whole amount which was 1500 total on my discover card and i didnt have a problem with it at all.

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Wanna get one for me too? lmao

I plan on doing this eventually... first i have to make sure i can actually make the payments.

[EddieK]

I've never had an issue with this.  Back in '07, put 5K down with a CC on an Acura TL with no issues.  My dad put the entire amount (19K) on a new Toyota Camry back in '08 on a CC with no problems.

[ecocredit]

Thank you all for your inputs! I am considering putting ~6K on my CC which I can confidently pay off over a year or so.