Tough to buy car with credit card
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?
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?