Car on Credit Card

[FalconSteve]

I know that many dealerships do not allow you to use credit cards to pay for part or all of a car, but if you but from one that does, which cards would allow this and still pay the standard everyday cashback?

Examples:

1. Citi Double Cash (1+1% cashback)
2. SoFi/ TBoM (2% cashback)
3. AmEx Cash Magnet (1.5% cashback)
4. BB&T/Truist Rewards (1/1.1% cashback)
5. Wells Fargo Propel (1% cashback)
6. Discover IT Cashback (1% cashback)

If you were just paying cash instead of financing with an auto loan, this seems like it would be better

[K-in-Boston]

I'm not aware of any card that would exclude them from rewards.  Auto dealers have MCC codes and vehicle purchases or down payments are considered purchases.  Many dealers will cap the amount they will accept on credit cards (in my experience that number has been between $5k and $12), but if there's an opportunity to earn rewards, take it.

[ptatohed]

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@FalconSteve wrote:

I know that many dealerships do not allow you to use credit cards to pay for part or all of a car, but if you but from one that does, which cards would allow this and still pay the standard everyday cashback?

Examples:

1. Citi Double Cash (1+1% cashback)
2. SoFi/ TBoM (2% cashback)
3. AmEx Cash Magnet (1.5% cashback)
4. BB&T/Truist Rewards (1/1.1% cashback)
5. Wells Fargo Propel (1% cashback)
6. Discover IT Cashback (1% cashback)

If you were just paying cash instead of financing with an auto loan, this seems like it would be better

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I bought my wife/kids a 2022 Telluride in Fall of '21.  I asked the Kia dealer what the max I could charge and they said $4,000.  I talked them into $6,000.  The thing that was a 'bummer' for me is this was at the tail end of my Citi DC before its retirement, just before my AOD arrived.  Lost out on $60.  Doh!   But to answer your question, I think they would all pay out at their normal CB rate.  

[bigseegar]

Back in 2000 the HD dealership in ATL,GA allowed me to put the entire amount of a $31,000.00 Harley Davidson motorcycle on my then AmEx Platinum card. That is of course very unusual but they did. In 2008 a local Ford dealership allowed me to use my then NFCU Visa for a $10K down payment on a new car. Neither charged any points/service charge/credit card fees back to me either. Most do now a days as I have read.

[GatorGuy]

The issue has never been with the credit cards but rather the dealers. I have used Capital One Venture and Chase Freedom Unlimited with no problems getting rewards.

[Kforce]

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@K-in-Boston wrote:

I'm not aware of any card that would exclude them from rewards.  Auto dealers have MCC codes and vehicle purchases or down payments are considered purchases.  Many dealers will cap the amount they will accept on credit cards (in my experience that number has been between $5k and $12), but if there's an opportunity to earn rewards, take it.

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^^^ This

From your list the Citi DC would be my pick

[K-in-Boston]

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@bigseegar wrote:

...Neither charged any points/service charge/credit card fees back to me either. Most do now a days as I have read.

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Some dealers may, but I have not encountered that.  It's probably also an important point to agree on a price for the vehicle before whipping out the credit card for a down payment or purchase price.

I also had a similar experience as potato a few years ago.  Cap was $6000, and since I was putting $12k down I though I would do half check and half credit card.  Finance manager asked some questions about the Delta Reserve card I had just used and when I grabbed the checkbook, he offered to just run a 2nd $6000 charge so I "could get the miles."  In hindsight, maybe I missed an opportunity for a referral bonus but at least I got another 6000 SkyMiles and hit a spend threshold for more!  😂 

[OmarGB9]

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@GatorGuy wrote:

The issue has never been with the credit cards but rather the dealers. I have used Capital One Venture and Chase Freedom Unlimited with no problems getting rewards.

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This.

[Taurus22]

I hope you aren't talking about carrying a balance on said credit card. Auto financing would afford much better interest rates than any credit card. And credit card interest rates would negate any cashback returns.

[ptatohed]

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@Taurus22 wrote:

I hope you aren't talking about carrying a balance on said credit card. Auto financing would afford much better interest rates than any credit card. And credit card interest rates would negate any cashback returns.

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I guess it was never clearly stated but I think the strong assumption is to use a credit card, receive a healthy reward, pay in full.  Otherwise, yes, you are right.