You can absolutely buy a car with a credit card. Although, it is not recommended since credit cards have higher interest rates than car loans. Nonetheless, your credit card could save you thousands on a new car.
TrueCar teamed up with American Express for AMEX Auto Purchasing Program, which saves members thousands on average. The vehicle-buying program claims to save cardmember an average of $3,272 off the manufacturer’s suggested retail price.
You must put at least $2,000 of the purchase on your card to take advantage of the AMEX Auto Purchasing Program.
You can put the entire car purchase up to your limit if you choose. AMEX also has an online widget to help you find your new car.
You can rack up a lot of points when you pay for your new car with your credit card. The Platinum Card from American Express will give you 100,000 points after spending $6,000 in the first 6 months.
The Capital One Venture Rewards card will give you 2 miles per dollar on every purchase. You can also receive 100,000 points if you spend $20,000 in the first year or 50,000 miles for $3,000 in the first 3 months.
You can take advantage of purchase-price discounts or bonus points without having to pay enormous interest charges. If you planned to take out a personal loan to purchase your new vehicle, you could use those funds to pay your credit card.
Car loans may have limitations on how you use funds since they typically hold the title until the loan is paid fully.