Can I pay for my new car on my credit card, and receive lots of points?

Technically, I suppose you could. However, the rates on your card are probably higher than the rate you could get on an auto loan. So, are the points worth the extra money you would be spending on interest?

For example.

Say you are financing $20,000 on your new car, and you plan on paying it off over 5 years.

(these interest rates are just for example... I Don't know what rates you can get)

If your credit card rate is 13%:
You would have 60 monthly payments of $458.45.
That means you would be paying (458.45 * 60) $27,507 for your car.

If your auto loan rate is 7%
You would have 60 monthly payments of $396.02
That means you would be paying (396.02 * 60) $23,761 for you car.

Thats a difference of $3,746 just to use your credit card. Are the points worth it? If so- then I guess you can go ahead. It's your money.

(a good tool here is an auto loan calculator. I use the one at http://www.bankrate.com/brm/auto-loan-calculator.asp )

(Don't forget... if your credit card rate is higher than 13% the difference could be much much more... for example, a 19.99% rate means 60 monthly payments of $529.77! Thats a total of $31,786!!! Thats $11,786 in interest!)

Yes you can purchase a car with a credit card. I bought a new car using several credit cards then I searched different banks to find the best rates available on auto loans then payed the credit cards off at the end of the month without paying any interest. Giving me 2 months of interst free money and any rewards the credit card offers.

If it costs the dealer money he/she won't do it. Good luck trying to find a dealer who is willing to accept a credit card. You might be able to pay for part of the new car with a credit card but it would depend on the dealer. The dealer never loses so if the dealership accepts the credit card it means the additional cost has been factored in. The buyer pays that cost.

Yes, it is possible. My husband and I were actually offered that option in August when we purchased our new car.

Nope.

As long as you have enough room on the card. As far as the points, that depends on the terms.

If a car dealer accepts a credit card (few will), he will mark up the purchase price to cover his cost of the interchange on the credit card (typically around 3%). An alternative is to get a loan with a dealer and make the payments through a third party. There are a few out there but they are expensive. The cheapest I've seen is through chargesmart.com. They charge 2.29%.

You can use your credit card, but just be sure you can pay the balance , on the card for the car, with 30 days.

The interest will eat you alive.