Some may let you pay for your complete car purchase with a credit card. However, it’s more typical for dealers to accept a portion of it through a credit card, like a down payment. One of the best places to get a car especially used cars is on the buy here pay here .
Here are some things to know about using a credit card to buy a car if you’re in the market for a new car. If you decide a credit card isn’t the ideal option for you, we’ll also go through other payment options.
1. Accepting credit cards at vehicle dealerships?
It varies. Some auto dealers only take credit cards for the down payment on a car loan, while others allow them for the whole purchase price of the vehicle. It could be because a credit card processing fee, which normally varies from roughly 1% to 3.5% of the transaction value, must be paid by a dealer each time a credit card payment is accepted.
Processing costs on large orders can mount up rapidly. A 3% processing fee, for instance, would cost the dealership $900 if you wanted to use a credit card to purchase a $30,000 automobile from them.
Many dealerships accept cash, money orders, personal checks, cashier’s checks, and ACH transfers instead of the expensive credit card processing costs. Before you purchase your next vehicle, it’s crucial to carefully consider the advantages and disadvantages of each payment arrangement. If you choose to use a credit card to pay for the purchase of the car, or even just the down payment, be sure you have a strategy to pay it off as quickly as possible to save interest rates.
To make sure you’re getting the greatest price possible if you decide to acquire an auto loan, browse around and compare offers. Many lenders give you the option to apply for prequalification, which allows you to see the possible loan conditions and interest rates without having your credit scores affected. Just remember that prequalification doesn’t ensure terms or loan acceptance, and your loan rates and terms can vary once you submit a complete application.