While it may be unconventional to the average consumer, there is nothing that legally prevents you from buying a car with a credit card. As long as your credit limit is high enough, you can put down a down payment or even a complete purchase with enough available credit.
With that said, many dealerships have a dollar limit on credit card payments. Merchants are charged a fee for credit sales, and those fees are a small percentage of the total sale. So on a large purchase, like a brand new car, the dealer could be spending hundreds or even thousands of dollars just on card fees alone. For this same reason, some dealers will place a 2-3% surcharge on credit card purchases to help offset the incurred costs. Exactly how much you can put on your card will be up to your dealer, but most will limit credit card charges to between $5,000 and $10,000.
The real question isn’t whether youcanbuy a car with a credit card; it’s whether youshould.There are several reasons it could be beneficial to use a credit card to purchase a vehicle. For instance, you can immediately get the title in your name and attain instant ownership without having a lienholder. Or perhaps you have an enticing reward offer from your credit card company that gives you some sort of appealing benefits for using it.
Regardless of the reason behind why you may want to use a credit card to buy a car, there are several factors you’ll need to consider before making a purchase.
Get the details about using a credit card to buy a vehicle by reading the full article.