Can You Buy a Car With a Credit Card? Are Times Changing?

Many dealers are coming around to a compromise on plastic, though: accepting a credit card for a down payment, often with a maximum of between $2,000 and $5,000, is more common. If you have the money in the bank and can immediately repay it to avoid interest charges (which are often high on reward cards), a credit card down payment could put a few dollars back in your pocket. You can use a cash-back credit card, or add miles or points to your account balance. American Express partners with TrueCar in a car-buying program that allows customers to put at least $2,000 of the car price on an American Express card, and there are programs for new and used cars. Mike Rabkin, owner of From Car to Finish, a new-vehicle negotiating service, said that’s what he did. “I charged $5,000 on my last car (the limit they allowed), and got 2% back in cash – so (I) earned $100 for doing it this way rather than with a check,” he said in an email. A possible caveat: If a charge of this size would bring your credit usage up to more than 30% of your credit limit, it could hurt your credit score. A solution? Pay off the purchase online immediately.