99% of all dealers will only allow you to put a maximum of $5000 on a credit card towards the purchase of a car. Remember they also have to pay 1-~4% merchant fees.

Doesn't matter if you have a debit card or centurion.

 

But I've never seen a card with a fixed 0% rate. The most is like a year of 0% and then jumps to around 20% or so.

 

That's what I said above, the idea is getting a card that has 0% to lower the loan interest and pay off the card in 10 months

 

Also, if you were to charge a car on a credit card, you could do a "chargeback" and say that the charge was not legitimate and the dealership could get focked big time. That is why there are limits on what you can charge on your card for a car. At the dealership that I bought my coupe from, the limit was 2,000.

 

How's that different from not making your payment though?

 

I'm not an expert, but I would think that if you buy a car on a credit card, there is no lien on the car, like a bank would put on the car if you take out a loan. So, (once again, i'm not an expert) if you would charge it back and somehow or other would win the chargeback, you could, in essence, have a free car, and the dealership would be out a TON of money.

 

Except that that's fraud, you would get sent to prison and have the car reposessed. You don't think your signature all over the paperword would be proof enough that you were the one that bought the car?

 

Obviously you have never disputed a charge before. This would never happen unless it was a fradulent charge and no dealer would allow this to occur, of course if it was someone who was working at the dealer but it wouldn't play out how you think. In short, your theory makes no sense.

 

Any charge on a credit card is an unsecured loan. This is different than an actual bank loan, which is secured. In other words, if you don't make your loan payments to the bank, they have the right to repo you car, and rest assured they will. But if you don't pay your monthly credit card bill, they can only send you to collections, then eventually take you to court, and then likely settle. In any case, they can never touch your car.

A friend of mine had a card with a $50k limit and 0% interest GUARANTEED for 12 months. He had a few grand of crap charged on there and only made his monthly minimum payments. No matter, because he had no finance charges. After 11 months, he did a balance transfer to another card with 0% interest for another 10 months. Now let's assume he wanted to buy a $40k car and actually had the cash to pay for it. Then let's assume he bought the new car with his card. He would essentially have a 0% loan for 22 months, gotten all sorts of incentives from his card, and put the $40k to work in some sort of interest bearing account for 22 months. In the end, his cumulative savings could be significant. But, as has been stated, no dealer (at least not one I've seen) will let you charge more than $10k - maximum on a purchase; if they did, and all the other ingredients were there for the taking, it would be a no brainer.

 

If it's the 0% rate on the credit card that you're going for, just finance the car with whatever loan you get, and do a balance transfer to that loan afterward (assuming your limit is high enough)... at that point, you get what you want, the only thing to watch out for is the balance transfer transaction fee at that point.. be careful, right now most are about 3% uncapped. you're probably better off financing throught the dealership unless your credit is shot and you have a credit card with a high enough limit that'll give you like a 1.9-3.9 for the life of the loan... just don't be late.. lol

 

I am trying to avoid doing balance transfer due to the 3% fee. My FICO is 800 and with 6 years of credit history. I was asking for this to put down a little more down payment to bring down the monthly and less interest charge. Trying to using money to its fullest potential...

 

I just closed a lease & the finance guy let me put the $2200 down on my card. I get points on my rewards card. Transfered the cash a few days later. All is well.

 

we've put a few things on credit card-- we'll make people sign authorizations sometimes along w/ the charges so it can't get disputed. fraud is a big thing now a days which does happen

 

Well fellas, contrary to popular opinion on this thread, you can pay for the total value of the car on a credit card. A friend of mine bought a $40K 3-series on a Mastercard, and I put all $35K on a Visa when I bought my G37. I had the cash, and I was going to write a check, but I really wanted the points on my credit card. I had to call my credit card company, go through some red-tape to allow such a large transaction, and the dealership had to verify the transaction with the credit card company. It took a few phone calls and a little extra time, but in the end it went through. I paid off the card at the end of the month, so the interest rate didn't matter to me (I honestly don't even know what my interest rate is on my card; never carried a balance).

Anyway, just FYI, it can be done. You just need to have an awesome relationship, and be in good standing, with your credit card company and work with a very understanding dealership.

 

And on a side-note, I just spoke with my parents. They paid my private college tuition, and my sister's, with a credit card. It's safe to say that two tuition payments were probably larger than a G37. He said after putting two kids through college that way, I they flew to Europe and back for free!! And had more miles left over a trip to Vegas (to celebrate never paying for anything for their kids again ).