Can you pay car dealers with credit card?

Asked by: Prof. Kaleigh Purdy  |  Last update: October 20, 2023
Score: 4.9/5 (37 votes)

In general, car dealerships accept credit cards. You might even be able to use a card to buy a vehicle. However, it's more likely that the dealership will take a credit card for a down payment or a part of the down payment up to a certain amount. For you, using a credit card is a convenience or maybe a necessity.

Do most dealerships take credit cards?

Most dealers do accept credit cards, but they cap the amount you can pay on your card. For example, many credit card companies cap the amount you can charge at around $5,000. A small minority of dealers will accept a credit card for the whole amount.

Can I pay my car using my credit card?

Whether you can make your car payment with a credit card will depend on your auto loan lender. Some lenders will accept credit card payments with no problem. Other lenders will accept credit cards, but will charge a hefty processing fee.

Why can't you pay for a car with a credit card?

Most dealers are unwilling to accept that additional risk. Additionally, credit card debt is considered unsecured, so the bank that issued the card can't repossess your car if you fail to make payments; a lender on a traditional car loan can repossess your car.

Why do dealerships not accept credit cards?

Many dealers don't accept credit cards, or if they do, they only allow you to pay a limited amount. This is because they get charged a 0.3% fee by their banks when you use the card, and they aren't allowed to charge you this fee.

The Ultimate Guide To Make Car Payments With Your Credit Card

37 related questions found

How much can you put on credit card when buying a car?

Exactly how much you can put on your card will be up to your dealer, but most will limit credit card charges to between $5,000 and $10,000. The real question isn't whether you can buy a car with a credit card; it's whether you should.

Can I pay my BMW car payment with a credit card?

Can I make a payment with my debit or credit card? You can make a payment with your debit card, but we do not accept credit cards for regularly monthly payments.

Can I pay my Capital One car payment with a credit card?

Answer provided by. Like most lenders, Capital One does not allow borrowers to pay car loans with a credit card. You may pay your monthly bill: Directly from your bank account with your account number and routing number.

Can I pay my Honda car payment with a credit card?

We are unable to accept credit cards. You can make a payment using your debit or ATM card by calling Customer Service or by using ACI Pay at 1-800-366-8500…

Should I buy a car on my credit card?

Some might allow you to use a credit card to pay for your entire car purchase. But it's more common for dealers to let you use a credit card to pay for a portion of it — such as a down payment. And some dealers don't accept credit cards at all.

How do you pay for a downpayment on a car?

The type of down payment accepted varies from car dealership to car dealership, however, most car dealerships accept down payments in the form of cash, checks or debit cards. When using cash, be careful and make sure you receive a receipt and other documentation that leaves a paper trail should the deal go south.

Does CarMax accept credit cards for monthly payments?

You can finance with CarMax, finance with your preferred lender, or pay cash. Can I use a credit card for a down payment? We do not accept credit cards for down payments. For customers buying online, we use an online payment portal where you can make safe, secure payments directly from your bank account.

Why can't I use my credit card to pay my mortgage?

Key Takeaways. Mortgage lenders don't accept credit card payments directly. Because of the fee, paying your mortgage with a credit card will not be worth it most of the time for most people.

Can I pay my car payment with a debit card?

Answer provided by

To answer your question plainly, yes, you can technically use your debit card to pay for a car—but it may not work for your specific purchase. There are a few more complications when paying with a debit card, especially if you're buying from a dealer rather than a private seller.

What credit score is needed to buy a BMW?

Financing an Automobile Through BMW Financial Services. To have your best chance of getting approved by BMW Financial Services, you'll want a credit score of at least 680. Although it is possible to get approved for leasing or buying with a lower credit score, the rates won't be as favorable.

What does the i stand for in a BMW?

Traditionally, the first letter after the number of each vehicle was an “i” on gas models (the “i” stands for fuel-injected) or a “d” for diesel vehicles. This changed with the addition of a hybrid engine to the 3 Series, 5 Series and 7 Series sedans.

What bills can be paid with a credit card?

5 Monthly Expenses to Put on Your Credit Card
  • Utilities. Using a credit card to pay monthly bills for household essentials such as electricity, gas, water, sewer service and trash collection makes sense. ...
  • Cell Phone, Internet, Cable. ...
  • Streaming Services. ...
  • Student Loans. ...
  • Car and Home Insurance.

Can I pay a loan with a credit card?

Can you pay a loan with a credit card? Yes, you can pay a loan with a credit card, but it's usually less convenient and has extra fees. If you can afford to make your loan payment from your bank account, that tends to be the better option. Hardly any lenders accept credit card payments.

Can you pay rent with a credit card?

You can pay rent with a credit card, but it probably won't be easy or cheap. Many landlords do not accept credit card payments directly, forcing renters to rely on third-party apps that charge fees in order to pay rent with a credit card. Plenty of people still do it, though.

Can I buy a $5000 car with a credit card?

Do Car Dealerships Accept Credit Cards? In general, car dealerships accept credit cards. You might even be able to use a card to buy a vehicle. However, it's more likely that the dealership will take a credit card for a down payment or a part of the down payment up to a certain amount.

How much should you put down on a 12000 car?

“A typical down payment is usually between 10% and 20% of the total price. On a $12,000 car loan, that would be between $1,200 and $2,400. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.

Is it good to buy cars from CarMax?

Some customers say CarMax is worth the extra cost due to the hassle-free experience, warranty options, and ability to let you test drive the car for a longer timeframe. CarMax sells mostly cars that were made within the past 10 years or so and you won't find many options under $15,000 to $16,000.

Should I put a large down payment on a car?

The general rule is that your payment will drop about $20 a month for every $1,000 you put down, based on a 5% APR, but this is subject to individual situations and loan terms. A larger down payment also helps you build equity faster and protects you and the lender against depreciation and potential loss.

What's the most you should put down on a car?

In general, you should strive to make a down payment of at least 20% of a new car's purchase price. For used cars, try for at least 10% down. If you can't afford the recommended amount, put down as much as you can without draining your savings or emergency funds.

Why do you need a 20 down payment on a car?

A lender might extend better terms, such as a lower interest rate, when you make a substantial down payment. Furthermore, a 20% down payment might help shield you from depreciation. Depreciation refers to the ever-shrinking value of your car. The value of a new car declines about 20% in just the first year.