Can You Buy A Car With A Credit Card?

Most shoppers know debt is essentially a catch-22. Used properly and you’ll enjoy every benefit of being a card holder. Take things too far and you’ll be wishing you never got ahold of the unlimited spending or high credit limit. The truth is — there are benefits and detriments to credit card spending no matter which way you look at it. It’s all about having balance, and in today’s world, that’s easier said than done. If you’re an avid shopper like many Americans are, a credit card is truly a blessing. Cash back? We all like the sound of that.

Credit cards are even a solid payment choice for buying your next car. Sound crazy? We couldn’t agree more. Most buyers would be surprised to know the number of people that invest in luxury vehicles, EV’s, and specifically Tesla models are using their go-to credit card as payment. Although most would assume you can buy any car with a credit car, the question becomes whether or not it is a smart buying decision.

Read on to discover the logistics of buying a car with a credit card, including if it’s truly worth it or not.

Can I actually buy a car with a credit card?

Sometimes life throws you punches and your credit card offers the immediate relief you need. Sometimes buyers are so addicted to the benefits of priority card services, travel points, and discounts on Amazon, that any other payment option is simply unjust. Basically, credit cards come in handy for a number of reasons, especially when the time comes to invest in a new vehicle.

You can 100% take the plunge and buy your next vehicle with a credit card. Of course, if your credit card limit allows. Whether you pay for it outright or make a serious dent in a down payment, a credit card is a stress-free option for most buyers. Not to mention it could help you hold onto to your cash a little bit longer. Perhaps even delegate your savings in different ways that are both beneficial to your car purchase and other life expenses.

Is it the right move?

There is nothing wrong with making the decision to buy a car with a credit card. Just keep in mind your credit limit and certainly make sure it’s high enough. For instance, you don’t want to make a $5,000 down payment with a $5,000 credit limit. That’s just asking for a disaster. If you have a $50,000 limit and buy a $25,000 card, you’re sitting pretty.

In fact, many buyers enjoy using a credit card because they earn significant points and cash back opportunities. If you have the funds to pay it back fast without taking on a considerable amount of interest, it ends up being a win/win scenario.

Moreover, it also makes perfect sense to look into a low-interest auto loan. As a well-qualified buyer, you can take advantage of 0% financing which is a game-changer.

Final run-through of buying a car with a credit card 

Credit car spending is a slippery slope for many Americans. Yet, if you knowingly put yourself in debt to purchase a new car, make sure you have the funds to pay it back quickly. Otherwise you’ll put yourself in a vulnerable financial state. While it might not be the smartest option, its definitely an option. One that more buyers can consider down the road.

Here are top three tips to follow when deciding to buy a car with a credit card:

1. Don’t take on more than is financially feasible.
2. High credit is a must. Stay mindful of credit utilization too.
3. Notify your credit card company beforehand.

Once you’ve made your decision to buy a car with a credit card, just make sure you take these valuable tips into consideration. As we always emphasize, saving money is the primary goal when it comes to car buying decisions.