Did you know that choosing the right credit card can help you save money and enjoy additional benefits when purchasing your next car? That's right, not all credit cards are created equal when it comes to making a major purchase like a vehicle. In this article, we'll explore the best credit cards for buying a car, showcasing the top options that will give you the most value and make your car buying experience as smooth and rewarding as possible.
Best Credit Cards For Buying A Car Table of Contents
Why Use a Credit Card for a Car Purchase?
Before we dive into our top credit card picks, let's discuss the benefits of using a credit card to buy a car. These include:
- It can offer additional rewards and cashback, giving you more value on your purchase.
- You may be able to enjoy added consumer protections that come with some credit cards, such as extended warranties or purchase protection.
- Using credit instead of cash can help you build credit history and improve your credit score, as long as you make on-time payments.
Important Note:
While these benefits may sound enticing, it's important to clarify that not all car dealerships accept credit cards as forms of payment or may limit the amount allowed to be charged. Be sure to check with your dealership before making any decisions.
Top Credit Cards for Car Purchases
Here are our top picks for credit cards that offer the best benefits and rewards for buying a car:
1. Chase Sapphire Preferred Card
With a generous rewards program and additional perks, the Chase Sapphire Preferred Card is an excellent choice for car buyers. Here are some features that make it stand out:
- 2x points on travel and dining purchases, and 1 point per dollar on all other purchases.
- 25% more value when you redeem points for travel and transportation through Chase Ultimate Rewards.
- No foreign transaction fees, making it a great choice for those purchasing vehicles abroad.
2. American Express Blue Cash Preferred Card
This card offers attractive cashback rates, especially for those who are interested in purchasing new cars. Here's what you can expect:
- 6% cashback on purchases made at participating US supermarkets (up to $6,000 per year); 3% cashback at US gas stations and on transit, including taxis, parking, tolls and more; and 1% cashback on all other purchases.
- A $0 introductory annual fee for the first year, then a $95 annual fee.
- 0% introductory APR for 12 months on purchases.
3. Capital One Venture Rewards Card
If you're a fan of flexibility, the Capital One Venture Rewards Card offers competitive rewards and redemption options. Here's what you can look forward to:
- 2 miles per dollar spent on every purchase, every day.
- Fly on any airline, stay at any hotel, at any time - with no blackout dates.
- Redemption options include flights, hotel stays, car rentals, and more.
Best Credit Cards For Buying A Car Example:
Now, let's look at a realistic example of how using a credit card to purchase a car can benefit you. Let's say you decide to buy a $20,000 car using the Chase Sapphire Preferred Card.
In this case, you'd earn 20,000 Ultimate Rewards points, which are worth $250 when redeemed for travel through Chase. Add in the card's sign-up bonus (assuming you meet the spending requirements), and you'd have enough points for a round-trip flight or several nights at a hotel. Not bad for simply using a credit card to make your car purchase, right?
To wrap up, using a credit card to buy a car can be a strategic move that offers additional rewards and benefits. Our top three picks, Chase Sapphire Preferred, American Express Blue Cash Preferred, and Capital One Venture Rewards, are all excellent options to get the most value out of your car purchase. Be sure to check with your dealership first on their credit card acceptance policy, and always make sure to pay off any high-interest debt as soon as possible to maximize the benefits.
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