Buying a new car for many is the largest purchase in their life. As a rule, each conducts extensive research before visiting a dealership. Everyone wants to make sure that the car has all the necessary functions and that it will be as safe as possible for us and our family. But most of all, we all want to make sure we get the best price.
Some people will not make a purchase decision until they have accumulated enough to buy a car for cash. But most do not have such an opportunity and they have to use tools such as a car loan, consumer loan or a loan to make a purchase. But what if there is another way to pay for the car that suits you? Perhaps there is a way to use a credit card and get rewards on it for a big purchase.
Do I need to use a credit card to buy a car?
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The answer to this question can be both “yes” and “no.” The fact is that some dealers may allow you to pay with a credit card, and some will not accept it. Some merchants may accept a credit card, but will limit the amount that can be paid in this way. As a rule, this amount is not more than 300 000 rubles. True, there are stories that some manage to circumvent this limitation by making several payment transactions. But, still be prepared for the fact that even if the dealer agrees to accept a credit card, he will insist on the limit.
In any case, be careful when buying a car. Always read the contract to the end because some sellers may add their bank charges for each transaction to the value of the car. You can go for a little trick and try to negotiate a price before the dealer finds out about your method of payment. Thus, you designate a specific amount that can no longer be adjusted to cover the dealer’s expenses on using a credit card.
But, nevertheless, even if you have the opportunity to buy a car by credit card, this does not mean that you should do this. Perhaps this method is not quite right for you. Weigh the pros and cons to see exactly what is the best way for you. Let’s try to figure it out together.
Do you have cash on hand and want to get bonuses by credit card?
If you have the full amount to buy a car, and you can buy it right now, this can be a great opportunity to get a large number of bonuses on the card. Buy a car using a credit card and then repay the loan before the grace period ends. Then you get bonuses and do not have to pay interest on the loan. But be careful! The longer the bank provides an interest-free period, the higher the rate of waiting for someone who does not have time to repay the loan, until interest began to run. In addition, most banks charge the first payment interest for all the months you did not pay. If you still do not have time, you will receive an extract with the first payment in advance, it may be more profitable to take a loan for the missing amount in order to close the credit card and pay less interest.
Do you have a good credit history?
The best credit cards are generally available exclusively to borrowers with a good credit rating. If your score is 700 or higher, this may be the best time to get a new credit card with decent bonuses. Thus, you will not only receive a reward for the purchase, but also get good conditions for the loan.
Although buying a car with a credit card sounds a bit strange, such methods are practiced in our country. After all, dealers are interested in selling as many cars as possible and are ready to make many concessions. But you, as a buyer, need to proceed with caution! This method is good only if you are sure that you have the necessary amount in your hand, or it will be in your pocket in the near future.