Credit cards treat car purchases as cash advances if the transaction bypasses the standard purchase network. In this scenario, you are not paying the dealer with a credit card; you are paying the bank.
Immediate Interest: How Car Credit Card Payments Work and Their True Cost
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. The Mechanics of Buying a Car on Plastic Understanding the technical side of the transaction explains why it is not as simple as swiping a card at the point of sale.
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.
Immediate Interest: How Car Credit Card Payments Accrue Cash Advance Fees
For the consumer, the primary question is not just possibility, but cost and consequence. Additionally, the interest rate on a cash advance is usually higher than the rate for purchases, often exceeding 25% APR.
More About Can you put car on credit card
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