Additionally, the interest rate on a cash advance is usually higher than the rate for purchases, often exceeding 25% APR. To circumvent this, many dealers require you to use a debit card or wire transfer, or they impose a convenience fee that can range from $200 to $500 to offset the charge.
Best Credit Card Car Purchase Strategy: Smart Tactics to Avoid Cash Advance Fees
Car dealerships operate on thin margins and are reluctant to absorb this cost. This can turn a $30,000 vehicle into thousands of dollars in interest if carried over long term.
Credit cards treat car purchases as cash advances if the transaction bypasses the standard purchase network. One effective method is to use a 0% APR credit card balance transfer offer.
Best Credit Card Car Purchase Strategy for Smart Financing
If you can qualify for a card with a 12 to 18 month 0% intro period, you can finance the car without interest, provided you pay off the balance before the promotion ends. Maxing out a card to buy a car can cause your score to plummet, making it harder to secure future loans for education or homes.
More About Can you put car on credit card
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