Charge Car on Charge Card?

[Anonymous]

Just wondering if anyone has experience buying a car with an Amex. I know most dealers only take a down payment with it but I have seen stories online of people flat out buying a car. 

[pizzadude]

I've seen that many dealers have a maximum amount that they will allow for a credit card transaction, which is usually much less than the price of a new car, like $5,000, etc....

However IMO you could probably dictate the terms of the deal if you wanted to negotiate it ~ and it might really be worth it for the MR points.....

[tcbofade]

I've never done it, but my former mother in law used to buy inexpensive used cars that way...

She'd use one of those 0% checks provided by her credit card...buy a cheap used car...pay off the card before the 0% deal expired.

[navigatethis12]

I personally have not but know people who have put it on a credit card. Merchants are not allowed to set a maximum purchase amount for credit card purchases. At least with Visa and Mastercard anyway. American Express sometimes leaves it up to the merchant. The dealer may not like it but they would rather pay 2-3% than lose the sale altogether.

[daveg38]

Since many of the used car dealers around here (Indiana) have the Visa/MC/AMEX logo on their window, I'd assume they get that type of business frequently.  If it runs over the amount of your credit limit, split between two points cards or have cash to make up the difference.

AMEX might have a coronary over a 10K charge, especially if you're a relatively new account holder.

[LS2982]

You might want to consult with the fine folks at AMEX before you pull that black one out and buy a car on it........

[Anonymous]

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@LS2982 wrote:
You might want to consult with the fine folks at AMEX before you pull that black one out and buy a car on it........

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Thanks for the feedback everyone. This black card is, im sure, the only reason im allowed to test drive now. Several months ago I wasnt even allowed to test used 5K cars. Im looking into a new car but even a 5K deposit on the card helps with MR points. I love points

[Anonymous]

In b4 someone says the dreaded "FR".

I'd first call AMEX and let them know what I plan on doing and then ask the dealer.

I've "heard" of people doing this when they had the cash to pay it off and I've read it on financial blogs, but who knows if any of those people are telling the truth.

[LS2982]

@FR +1

[Anonymous]

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@Anonymous wrote:

In b4 someone says the dreaded "FR".

I'd first call AMEX and let them know what I plan on doing and then ask the dealer.

I've "heard" of people doing this when they had the cash to pay it off and I've read it on financial blogs, but who knows if any of those people are telling the truth.

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I certainly let them know of the charge I intend to do the day before. I would rather use Amex over cash do to the points. If I can only do a deposit on Amex id still take that over fully cash. Im not to good with negotiations.