Buying a car can be a tricky process for money, it is definitely a costly thing to do, and not many people can buy a car without some sort of financing. Sure, there are some people that can go ahead and buy a car completely on cash, but the number of those people is fairly small. Amidst all these buying options, there is one that is overlooked, and that is the process of buying a car using a credit card; it does sound tempting and could result in you earning a lot of points as well, so it is a win-win situation.
However, whether you can buy a car using a credit card or not is situational. There are different factors that come into play. For starters, the dealer that you are going to buy, as well as whether the bank you are using will allow a purchase that big. Normally, you are capped at $5,000, which is enough to buy a car.
Not All Dealers Will Accept It
There will be a small fraction of dealers that will let you charge the credit card for the entire amount of the car. However, these dealers are few and far between. The most likely situation would be finding a dealer that is affiliated with your bank.
Balance Transfer Checks is Another Option
Another option that you have involves the balance check transfer that you can use. This option will certainly strip you of the reward points, but you can use this feature to get the car. Normally, this feature is offered to the customers if they have to pay off their debts, but it can also be used in this situation.
Only Charge The Car When You Are Going to Pay Back
Most people only use credit cards to charge a card and never pay back. Never be that person because it is only going to end up in a lot of issues from your bank, and could possibly result in the car being taken away. So, in order to avoid that situation, it is best that you set aside the money that you intend to payback for the car. That way, you can keep paying the money back, and not have to worry about losing your car.
Should You Buy a Car With a Credit Card?
Now comes the important question; should you buy a car using your credit card? It depends on a few factors; if you can find a dealer who will allow such a transaction, and if you can pay back the bill in full or in installments whenever the bill is due, then going for a car on a credit card is really a smart idea because it will allow you to earn a lot of reward points. Additionally, it will allow you to have a car without having to wait a lot.
Just make sure that you are able to pay back the amount on time.