Assuming that you, the buyer of a car/truck has negotiated an OTD price on a vehicle for a cash price ... how would you pay for it to maximize any possible credit card/bank incentives? Example: If you CC give 1% cash back on all purchases (and assume that you have a $10K credit limit) ... could you not make you already-negotiated price even better by putting $10K of the vehicle purchase on the CC and get the benefit of the CC rewards while paying the rest of the purchase price by cash or check?
I may be buying a new vehicle soon and am curious as to how to maximize any possible buying rewards if paying with cash for an OTD price. Thank you ...
In summary: There are very few dealers which will let you put an entire vehicle purchase on your credit card, but they do exist. Most will let you use a credit card for a deposit of a few grand, though.
This is a great opportunity to meet minimum spend requirements for a new card sign-up bonus. At the very least pick a card with more than 1% cash back!
Seriously, your best bet may be to take the dealer financing and get an even better deal. Do some research and see if there is extra cash back on the table for manufacturer financing. Pay it off a month or two later.
DUDSTER said: Example: If you CC give 1% cash back on all purchases (and assume that you have a $10K credit limit) ... could you not make you already-negotiated price even better by putting $10K of the vehicle purchase on the CC and get the benefit of the CC rewards A lousy 1%? Have you learned nothing here?
DUDSTER said: Assuming that you, the buyer of a car/truck has negotiated an OTD price on a vehicle for a cash price ... how would you pay for it to maximize any possible credit card/bank incentives? You answered your own question in the first sentence. Make a large CC payment a negotiated characteristic of the offer. Too late for that now? Follow dcwilbur's advice and research if there's a way to get even more money off by financing through the dealer. Then every part of the deal is open for renegotiation and you can make a CC payment a large part of the deal.
zonacat said: Last place I bought from was a Mazda dealer that allowed us to put 5K on credit card of our choice and finance the balance for an additional $500 mfg. Incentive.
They knew we wanted to pay cash but offered this option and only asked us not to pay off the loan for 60 days because if we did the mfg. Would claw back the $500.
Netted about $475 after paying the small amount of interest for 60 days plus the credit card cash back on the 5K. We couldn't think of any better way to do it that would get us any more.
Several years ago, same exact thing was offered by Mazda, and also told about having to maintain the loan for 60 days. It was just BS. I had it a week until the loan was properly recorded and I could see it in on the web site. Call in to inquire about closing the loan and what penalties, and there were none. Paid it off, and moved on...
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