Has anyone here ever tried putting a down, or even buying a car, using their credit card, ex. AMEX. Thinking of putting a $20K down using my AMEX to earn air miles or points. I do intend to pay it off before interest gets tacked on to it. Do dealers accept these? I think it should work with a AMEX since there's no limit on it. What do you guys think?

 

Amex Is Okay By Most Dealers

 

If your AMEX card offer lower rate i would do it...

 

dealers are limited to $3000.00 on a credit card by most state laws. i don't know about amex since it is technically not a credit card. also, you can use a debit card for the whole amount, but the dealers are required to file a cash form with the irs...same as a cash transaction.

 

he is right I 3000 down on my amex for the points and thats all the dealership was allowed

 

If it's $10,000.01 or more

 

yup, $3000.. Amex is considered credit card, no? since business owners are paying interest, transaction fees, etc.

 

like others said, i think $3000 is max. When i got the car, the dealer only let me put the $3000 on my card (Mastercard) and the rest by check. When my friend bought her mini, they only let her put down $2000. So it can depend on the dealer as well, since they get charged a percentage of the amount i think.

 

I bought a pickup from a car lot, not a franchise dealer, and it was a little over 6 grand out the door. Paid the entire balance on my VISA.

 

Nothing to do with what fees they get charged it has to do with your dept to income ratio. If you are using a credit card for a down payment when they pull your credit report it will not show the $3,000 charge. If they allow you charge more than $3,000 on the credit card you are essentially getting approved on an incorrect credit analysis.

 

Grubbs let me do it for the full purchase price if I wanted when I purchased my last car from them

 

that's different from you when you are financing remaining balance you don't charge on your credit card.

 

Most dealers in Illinois are happy to let you put whatever amount you want on the card. My guess is some dealers have their own policies to mitigate credit card fees. One way to put some pressure on them is say "Oh I forgot my checkbook I will come back tomorrow." I know tons of people who have put the entire car on their card. IMO is foolish not to considering the perks you get.

 

Another possibility is getting a check from the credit card company, like a lot of them are offering these days (fill in the check yourself). There may be limits on those as well, but it also may be a way around the $3k limit running through the machine.

 

I did it on my old integra, both it for 17K. If you have a high credit line and low APR it's worth it, plus you'll probably get lower interest on credit card than getting a loan if you have excellent credit.