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Scott,
Great web site! I read your article
on purchasing a car with credit cards. I couldn't agree with you
more! Money is money. And I want to borrow at the lowest possible
rate!
Mechanically, how are you completing the
transaction? I've heard some dealerships don't accept credit card
purchases (because of the CC discount?).
Assuming you used a convenience check, how
did you optimize that transaction? Did you quickly transfer the
balance to a 0% card?
Thanks,
Jon
Jon,
Thanks for your positive comments
about DebtSmart.com!
You are correct in that car
dealerships don’t want to accept credit cards for car purchases.
Specifically, they will not allow you to purchase the entire car on
your credit card because they have to pay the merchant a percentage
of that transaction. They will, however, accept some of that payment
with your credit card--the down payment, or some other payment say,
$1,000 to $2,000.
The way I use my cards to complete
the entire transaction is by cash advancing the money and depositing
it in my account so it’s available when I purchase the car. This way,
I can tell the salesperson, "If we can agree on a price, I’ll stop
shopping and write you a check in full right now!"
Of course, you want to make sure that
you are careful to take advantage of credit card offers that will
give you a good rate for the cash advance. A better rate than you
can get from a bank. And that the offer doesn’t charge any cash
advance fees (or at least a low cash-advance fee).
Creative financing using your credit
cards can save you thousands of dollars in interest charges, which
is why you always need to figure out if this option works in your
situation.
Regards,
Scott
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