buying a car on a credit card

**Cucumber** · 9:10 pm

Out of curiosity I wonder what would happen if you try this. If you're one of the fortunate few that have that kind of money to pay for a car in full, wouldn't it be better to put it on your credit card and earn points instead of writing a check? plus even if you can't afford to pay in full a lot of CC rates are less than auto loans so i think i would pay with a card anyway.

I heard in New York state it's against the law to do this and to put more than $2500 on a CC for a car purchase. All the major CC don't allow minimums or maximums so if the dealer accepts credit cards to pay for repairs and oil changes they should be required to accept it for payment of a car. I know the dealer will be paying $$$ for the fees but if they don't want you to use a CC they should off you a 1% or 2% cash discount.

**Multi-Purpose** · Aug 29, 08, 1:38 am

You figure someone buys a $30 thou car and if they're paying with a rewards card that is probably 2.5% and that's $750 in credit card fees for the dealer. i don't blame them for refusing to accept the card as payment even if that is against their merchant agreement.

what credit cards should do is set a maximum cap for fees on bigger purchases. make it a max of $100 in fees per transaction.

**bikermike** · Aug 29, 08, 10:04 am

This is what I would do-

Try and use your credit card to pay for the car. If they take it great you get rewards. If they don't have a printoff of the Visa/MC/Amex rules about limits on purchases being prohibited. Say you will pay with a check if they knock off another $300 from the price. That's 1% on $30,000 they would still be paying less than the credit card fees.

**Mogul of Pineapples** · Aug 29, 08, 7:48 pm

I've had the same car since '00 and I was planning on finally buying a new car, the new Prius, when it comes out next year - assuming I can still afford ot do that. I was thinking of putting it on my card too. I have the American Express Simply Cash credit card and the limit on that card would work so it would be enough to put the entire purchase on the card. I would prepay part of that amount though so the charge wouldn't take up more than 30% of my credit limit.

It should work but like you've pointed out they may hassle me either way. I'll try the negotiating method of asking another $300 be knocked off if they won't allow a credit card.

**AnthonyBarone** · Aug 30, 08, 5:50 pm

Whoever said that was a law in New York state is trying to pull a fast one. I live here and I can tell you there's no such thing that puts a max on credit card purchases for cars or anything else.

I'm financing my next pickup with a credit card because the rate is cheaper than an auto loan from my bank.

**jhudson** · Sep 5, 08, 12:03 am

Yup Im gonna go buy my Lamborghini on my black card

**Rajeta** · Sep 6, 08, 9:01 am

Plenty of people have 30 thousand dollar or over limits on their cards. They won't let them charge a 20 thousand dollar car? I never heard of a 2500 limit in NY. Where did you hear that?

**Cucumber** · Sep 6, 08, 12:39 pm

I had heard it from a friend and a dealer told him that.

It sounds like he was trying to make an excuse to not accept credit cards for payment. If I was buying one this way my worry is I would spend my time negotiating a good deal and then it would fall apart because of the credit card issue. If I got a really good deal I would let that make it or break it.

**fffresh** · Sep 13, 08, 8:59 pm

I bought furniture today and the same thing happened the guy insisted I only pay with cash for the deal. I was haggling between a few stores and this was the best deal so I went ahead and agreed to do cash anyway (and pay when it's delivered).

Get this - he wanted to put a deposit on my card since I carry no cash on me to even pay for that. I hand him my Amex and he tried making an excuse about their cards have "5 numbers" so it won't go through and to give him a Visa or Mastercard. That was BS he just didn't want to use Amex because the processing fees are higher. I insisted he slide it because my debit card I had on me I don't know how much is in the account. He finally did an sure enough it went through. It was a mom and pop shop so I guess we should just expect unprofessional behavior from these unprofessional people.

How cheap is that - I buy $800 in furniture and and on the $100 deposit he tries haggling for Visa to save him an extra 50 cents to a dollar on processing fees.

**Floppster** · Sep 30, 08, 7:09 pm

Unfortunately I have never seen a car dealership offering you to pay a car with the credit card. Maybe when you pay sticker but that is probably the only chance. Then they'll make 20-25% profit anyway so it is ok for them.

I had the pleasure of meeting someone who wanted to pay his 996 GT2 with a Cent and they pretty much told him that he needs to call his bank to wire the money or he has to walk home !

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