Using credit cards to buy a car...

[mataspeed]

Has anyone ever used a credit card to buy a car? I mean using the credit card for the whole amount of the car?

I've heard dealers only let you use up to a certain amount to finance the car but if you had a credit card with a high enough CL shouldn't it be possible to buy a car with just the credit card? Imagine the cash back I would get if I could use a cash back card to buy a car that's 15k or more...

Of course I would pay it in full right after and avoid getting hit with crazy interest rates. But I was thinking what if I can get a card with no interest for 12 months. Use it to buy a car assuming it's about 15k, then use the 15k and put it in a high interest CD for let's say 5%. That's 750(less taxes) of interest earned on. That's like getting a free car for a year no? Or heck if it's a cash reward card with no interest for 12 months, get cash reward on that + put it in CD for a year.

Is that possible?

[haulingthescoreup]

It's supposed to be possible, and I think I remember reading that someone (ozgirl?) did it. I tried paying for my new-to-me Accord last month with my AmEx. The salesman blanched and said that they couldn't do it because the transaction fees would kill them, even if it had been Visa or Mastercard. They might be in violation of their card arrangements, since they do take cards for repairs, parts, etc., but he said that sales and the shop were two different business entities.

My husband looked at me as if I had just escaped from the Special Place a few miles down the road.

[Anonymous]

that is funny....
high priced items like cars should give them a break on fees....

my boss owns a restaurants and his distributor accepts credit cards to pay off his invoices every time, totaling to about 20-25k a month.....so basically that gives my boss like 12 free tickets wherever he wants to fly every year.

high priced items should be deemed as qualified high priced items, which the percentage taken off the sale is possibly less than 1 percent of the total.

considering losing 1 percent and possibly losing a sale...which would they choose?

too funny.

[Anonymous]

If the dealership tells you that sales and parts/service are 2 different businesses have them show you both sales tax permits.

[Anonymous]

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mataspeed wrote:
Has anyone ever used a credit card to buy a car? I mean using the credit card for the whole amount of the car?

I've heard dealers only let you use up to a certain amount to finance the car but if you had a credit card with a high enough CL shouldn't it be possible to buy a car with just the credit card? Imagine the cash back I would get if I could use a cash back card to buy a car that's 15k or more...

Of course I would pay it in full right after and avoid getting hit with crazy interest rates. But I was thinking what if I can get a card with no interest for 12 months. Use it to buy a car assuming it's about 15k, then use the 15k and put it in a high interest CD for let's say 5%. That's 750(less taxes) of interest earned on. That's like getting a free car for a year no? Or heck if it's a cash reward card with no interest for 12 months, get cash reward on that + put it in CD for a year.

Is that possible?

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I purchased a car using a balance transfer check that posted to my credit card.  I did not go to a dealer and have a salesperson "swipe" my credit card for the purchase. 

You do have to remember that 0% interest for 12 months does not mean no payments for 12 months.

In addition, I don't know of any CCC that has a rewards program that has an "automobiles" category.  So in terms of cash rewards, you'd probably only be receiving no more than 1-1.5% cash back on this type of purchase.  On a $15,000 purchase, that's only $150-$225. 

Message Edited by psychic on 02-22-2008 08:35 PM

[Anonymous]

If you can get rewards on a bt, arrange a car loan thru a bank before hand and make sure that they will let you use the car loan to pay off the purchase of your car on your credit card. Just make sure it is not the same bank that issued you the cc and that you are now trying to get the car loan thru.

Also was this a convience check and not a balance transfer check?

[Anonymous]

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cowpaddi wrote:

Also was this a convience check and not a balance transfer check?

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I used what I now call a "balance transfer check."  At one time, I thought that a special rate check used for purchases was called a "convenience check."  However, a BoA rep once told me that the term "convenience check" is used for a check at a standard purchase rate.  On the other hand, a "balance transfer check," has a special, lower rate.  So, even though I did not transfer a balance, I used a "balance transfer check."

Message Edited by psychic on 02-22-2008 09:13 PM

[MidnightVoice]

My local Toyota dealer has a $1,000 maximun on CC transactions

[FretlessMayhem]

I threw my down payment of $1000 on my Amex when I bought my Infiniti last Saturday. They asked if it was going to be check or credit.

[Anonymous]

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@MidnightVoice wrote:
My local Toyota dealer has a $1,000 maximun on CC transactions

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That's it? What about repairs/service? They must frequently have transactions higher than that.