Financing a car can be done in several different ways. One method that you may not be aware of is with credit cards. Some refer it to as car credit card financing but what is important to understand that it does not always work.
First of all, not all dealers accept credit cards. New car dealers will never accept such a form of payment. Your best bet is to check with a used car dealer. Some of them do accept payments using credit cards. The ones that do, may ask you that you come with a down payment ahead of paying for the rest of the car with a credit card. What you should not do is make an expensive purchase when venturing into car credit card financing. Get a cheap car and avoid getting into too much credit card debt.
Another aspect of paying for a car with a credit card is interest rates. Credit cards have APRs that are far higher than a regular car loan. It becomes advantageous to go for car credit card financing only if you have a credit card that has 0% APR if you pay everything within a certain number of months or other types of conditions that will allow you to purchase without paying interest.
Lastly, try to come with a down payment as high as possible. The smart move would be to delay a car purchase for a month or two to put as little debt on your credit card as possible. You will most likely have to pay off the car and implicitly the credit card within one year. If you would buy a $5000 car with a minimum down payment, your monthly payments on the credit card will be very high. If you plan of leveraging car credit card financing, do it responsibly as it may drastically affect your financial situation.
