Can You Use A Credit Card For A Car Down Payment?

Can you Use Credit Card for Car Down Payment

Your Guide: Can You Use a Credit Card for a Car Down Payment?

Do you need to buy a car? Maybe it’s needed to get to your job or your current car is on its last leg. In either event, something most people need to explore is coming up with a down payment. Unless, of course, you pay with all cash upfront.

For those of us who need to make a down payment, well, it’s a pretty big decision. How can you finance it? Should you take out an auto loan? Can you use a credit card to make a car down payment?

Today we are going to tackle this and more in our easy-to-follow guide. Keep reading to find out more.

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Can you Use Credit Card for Car Down Payment

Can you use a credit card for a car down payments?

Yes, you can use a credit card for a card down payment. Here’s the catch: It all depends on the dealership. Not all dealerships are willing to accept credit cards for down payments. Some might be able to accept credit cards, but they might put a cap on the amount you can put down.

Others might impose some sort of fee to make up for the fee that they have to pay every time they swipe a card. So, our rule of thumb would be to speak to the dealership first to ensure you are all set to go.

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Can you Use Credit Card for Car Down Payment

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

Additionally, although some dealerships do not accept credit cards at all, others do. Typically, most dealerships are willing to accept anywhere from $5,000 to $10,000 on a credit card transaction.

Of course, we’re talking about standard credit cards. For example, if you had a black card, chances are you would probably just buy the car outright, but the typical American can expect to pay the range above.

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Is it smart to buy a car with a credit card?

Next, you do want to consider the actual costs of using a credit card. Typically, you can find some pretty solid auto loans that have great interest rates on them. Many credit cards charge a high interest rate so you will probably end up paying more for the purchase than is necessary. Just be sure to weigh out all your options before moving forward.

Can you Use Credit Card for Car Down Payment

What is the best time of the year to buy a car?

If you’re looking to try and save some money, we’d recommend buying your car during the time of year when dealers offer discounts or deals. The months typically range from October to January 1.

This will work in your favor because the dealership and salespeople are working to make ends meet. When this happens, it typically means they are more willing to work out some sort of deal to make the sale.


In conclusion, although you’ll be charged a much higher interest rate than an auto loan, it’s good to know that you can use a credit card to buy a car. We would highly recommend that you check with your local dealership to ensure that their establishment does indeed accept credit, first and foremost.

Then, it might be wise to explore an auto loan from a credit union just to see their interest rates. If all else fails, then using your car should help cover some of the down payment expenses. Happy shopping.