auto

Tough to buy car with credit card

Terry JacksonDear Terry,
If you have the money in the bank, is it useful to buy a car with a cash-back credit card to save money on the total purchase price?
-- Stephen

a_v2.gifDear Stephen,
If I understand you correctly, you want to put the car on your credit card, reap the card's cash-back benefits, then pay off the card with cash. It's a nice idea, but I doubt many dealers would let you do this.

The dealer pays the credit card company as much as 2 percent of the transaction, so that's another 2 percent out of the dealer's pocket. Most dealers will let you put part of the car's price -- usually capped at $5,000 or less -- on a credit card and then pay the remainder in cash or by financing.

Here are this week's reader questions:
  • Car lots crammed with three model years
  • I co-signed -- how can I get rid of the loan?
  • Can I buy my car with a credit card?
  • How do interstate auto loans work?

 

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