When consumers want to finance a vehicle purchase, they typically do so with a loan offered by the dealership or through their own bank. Some men and women like the idea of buying a car with a credit card at Auto Sales in South Bend IN. At least, they might make a substantial down payment with the card. Is this a good idea financially?
Better Control Over Finances
Some consumers do not want to take out a loan, especially if they have other loans they are paying off. Paying down the credit card balance makes them feel more in control. They can do so at the rate that works best for them. One month they might pay the minimum due and in another month, they might pay three times that amount. The decreasing balance means they have more credit available if they really need to use it.
A Problem Credit Score
Some men and women know their credit score is not great. They will be denied traditional car financing at Auto Sales in South Bend IN, making their only other option a higher-interest loan through a dealership offering those opportunities. The interest might not be any higher than they pay on the credit card, but it limits their options for available vehicles.
Introductory Card Benefits
An excellent reason for this choice is when someone has just received a credit card with 0-percent introductory interest for 12 months or longer. Also, with a rewards card, the buyer now can actually earn a cashback bonus with this purchase. In addition, some cards offer a sign-up bonus for spending a certain amount within 90 days. Buying a car is an easy way to reach that amount
Considerations
For various reasons, not all dealerships accept credit cards for these transactions. Businesses that focus only on pre-owned car sales are more likely to do so. They might accept a card for the down payment with the rest financed in a more traditional way. Another option might be to pay part of the price at a dealership like S&H Motor Sales with a credit card and the rest in cash.
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