Purchasing a car is an important decision that most people will inevitably face. How you’ll pay for the car is likely a primary concern. Most people choose to finance with a loan or pay cash, but one of your payment options might be a credit card.
When it comes to a large transaction like buying a car, using the right credit card could make the difference in getting hundreds (or even thousands) of dollars back in the form of rewards.
In this guide, we’ll show you the best credit cards for purchasing a car.
Why Would You Purchase a Car With a Credit Card?
The big reason why you’d want to purchase a car with a credit card is to take advantage of points, or more broadly, rewards.
Most people purchase cars outright with cash or take out a loan. Since many dealerships offer 0% APR financing on loans, you might break even if you buy a car with a credit card that offers a 0% introductory APR period. Though most credit cards don’t offer 0% APR for longer than 24 months.
Basically, the only real situation when it makes sense to purchase a car with a credit card is to get a nice chunk of points. And if you sign up for a new card with a welcome bonus, your car purchase would make it super easy to snag that bonus and meet minimum spending requirements.
How Do You Purchase a Car With a Credit Card?
If you like the idea of getting a solid return of 2% to 4% back on your car purchase in the form of rewards, then you’re in the right place!
We need to set some expectations up front, though. Car dealers always want to make the most money from you, and fees for accepting credit cards cut into their profits. Expect some limitations on dealership credit card acceptance. A common practice is that the dealer will only let you charge the down payment to a credit card, though some may not accept cards at all.
Your mileage may vary, but you should always try to negotiate using a credit card as part of the purchase after you’ve fully negotiated the purchase price of the car.
The 3 Best Personal Cards for Purchasing a Car
Image Credit: Benjamin Klaver via Unsplash
What are the characteristics of an ideal card to purchase a car on?
Mainstream credit cards from major banks including American Express, Chase, and Capital One don’t offer bonus categories for car dealerships, so you can’t optimize there.
However, what you do need to optimize for is:
- Great earning for non-bonused spending
- High spending or credit limits
With the right cards, you can earn up to 2x points per dollar spent. You may also be able to make 5-figure or even 6-figure purchases with a single swipe without getting your card declined or maxing out your credit line if you have the right card.
Assuming you aren’t purchasing a car for your business, this next section will walk you through the best personal cards to use for purchasing a car!
Card Summary
| Card |
Welcome Bonus and Annual Fee |
Benefits for Purchasing a Car |
| The Platinum Card® from American Express |
- Earn 100,000 points after you spend $6,000 on purchases on your new Card in your first 6 months.
- Annual fee of $695 (rates and fees)
|
- 1x points on non-bonus purchases, including car purchases
- No preset spending limit
- Access to the American Express Auto Purchasing Program
- Amazing luxury travel benefits like airport lounge access and hotel elite status
- Excellent travel insurance
|
| Capital One Venture X Rewards Credit Card |
- Earn 75,000 miles when you spend $4,000 on purchases in the first 3 months.
- Annual fee of $395
|
- 2x miles on all non-bonus purchases, including car purchases
- Travel insurance
|
| Chase Freedom Unlimited® |
- INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!
- Annual fee of $0
|
- Unlimited 1.5% cash-back on all non-bonus purchases, including car purchases
- Travel insurance
|
Hot Tip: See our helpful guides to the credit cards that offer a high credit limit or are perfect to reward high spending and large purchases.
1. The Platinum Card® from American Express
Hot Tip: Check to see if you’re eligible for a huge welcome offer of up to 150,000 points with the Amex Platinum card! (The current public offer is 100,000.)
Our absolute favorite personal card for buying a car is the Amex Platinum card.
The Amex Platinum card comes with a generous welcome bonus and the ability to earn up to 5x points per dollar spent on flights purchased directly from the airline or at Amex Travel and prepaid hotels booked with Amex Travel (up to $500,000 in purchases per calendar year).
While your car purchase will only earn 1x Membership Rewards points, the Amex Platinum card is one of the cards that is most likely to have a high enough spending limit to purchase a car.
Normal cards have credit limits that you can’t exceed, but the Amex Platinum card has no preset spending limit, meaning that Amex changes your spending limit on a regular basis if they believe you can pay back your bills in full.
Indeed, the Amex Platinum card has been made famous for being able to put huge purchases on the card, like yachts and paintings. But one of the biggest specialty perks you’ll enjoy as an Amex Platinum cardholder is access to the American Express Auto Purchasing Program.
This program allows you to get some additional information on the car you’re interested in, find dealers that will accept your card for at least $2,000 of your purchase, and get a Guaranteed Savings Certificate that will provide you with a fair price to cut through any negotiating nonsense.
In addition to these car purchase perks, you’ll be spoiled with luxury travel and shopping perks, including up to $200 annual airline fee credit, up to $200 in annual Uber Cash, up to $100 in annual Saks Fifth Avenue credit, a TSA PreCheck/Global Entry credit, up to $189 annual CLEAR credit, up to $300 in annual Equinox credit, up to $240 in digital entertainment credit, up to $200 prepaid hotel credit on eligible stays, up to $155 in Walmart+ credit, and up to $300 in SoulCycle bike credit.
The Amex Platinum card offers the best airport lounge access of any card, including Centurion Lounges, Delta Sky Clubs (when flying Delta the same day), Escape Lounges — The Centurion Studio Partner, Plaza Premium Lounges, and Priority Pass lounges upon enrollment.
You’ll also get complimentary Hilton Honors and Marriott Bonvoy Gold Elite status upon enrollment, access to Amex Fine Hotels & Resorts, and no foreign transaction fees (rates and fees).
Why We Like Earning Amex Membership Rewards Points
The points you’ll earn when making purchases on the Amex Platinum card are called Membership Rewards points. They are the most valuable points according to our valuations, which will maximize the value you get from purchasing a car.
Our favorite way to redeem Amex points is to transfer them to airline and hotel partners for luxury travel in business or first class or 5-star hotels.
You can also redeem Amex points for cash-back or statement credits, travel bookings through Amex Travel, gift cards, charity, and more. But the best way to achieve maximum value with your Amex points is to use transfer partners to book travel.
A $30,000 car purchase on the Amex Platinum card would earn 30,000 points, which is worth around $660, according to our valuations.
Bottom Line: The Amex Platinum card is an incredible ultra-premium card jam-packed with value. It doesn’t have a preset spending limit and it offers the unique American Express Auto Purchasing Program, which could go a long way in helping you buy a car. This is in addition to offering 1x Membership Rewards points per dollar spent on car purchases.
2. Capital One Venture X Rewards Credit Card
The CapOne Venture X card is recommended for those looking for awesome travel benefits with great rewards without worrying about bonus categories.
This is one of the most well-rounded credit cards you can have, boasting a low annual fee (for a premium card), no foreign transaction fees, and the ability to earn 2x miles on every purchase, every day.
Additionally, it earns 10x miles on hotels and rental cars booked through Capital One Travel and 5x miles on flights booked through Capital One Travel. For a limited time through May 16, 2023, you can also earn 10x miles on Turo bookings.
You’ll also enjoy a fantastic welcome bonus, a $300 Capital One Travel credit, an application fee credit for Global Entry or TSA PreCheck, a cardmember anniversary bonus of 10,000 miles, unlimited access to Capital One Lounges, Priority Pass lounges, and Plaza Premium Lounges, as well as top-notch travel insurance. You’ll even get top-tier Hertz President’s Club status!
This card comes with purchase protection, extended warranty protection, zero fraud liability protection, and a slew of other perks like no foreign transaction fees.
And since you aren’t limited in how many miles you can earn and many cardholders get hefty credit limits, this is a great card to put your car purchase on.
Why We Like Earning Capital One Miles
We like Capital One miles because you can redeem them for numerous options, including gift cards, donations, PayPal, and our personal favorite, transferring miles to travel partners and redeeming them for business and first class travel.
If you put a $30,000 car purchase on the CapOne Venture X card, you would earn 60,000 Capital One miles, which is worth around $1,080, according to our points and miles valuations.
3. Chase Freedom Unlimited®
The third-best personal credit card you should consider using to purchase a car is the Freedom Unlimited card, and it’s our only no-annual-fee personal card on this list.
The Freedom Unlimited card earns 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and at drugstores, 1.5% cash-back on all other purchases, and a 0% intro APR perk!
In addition, the Freedom Unlimited card provides purchase protection, extended warranty coverage, zero liability protection, secondary rental car insurance, and fraud alerts.
Most importantly, if you have an Ultimate Rewards card like the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®, you’ll be able to convert your cash-back to Ultimate Rewards points at a ratio of 1% to 1x points.
Why We Like Earning Chase Ultimate Rewards Points
Chase Ultimate Rewards is one of our absolute favorite reward currencies.
The best way to use Ultimate Rewards points is to transfer them to airline and hotel partners for incredible flights like Singapore Airlines First Class Suites!
You can also use your Ultimate Rewards points for cash-back, purchases at Amazon, gift cards, and travel booked through the Chase travel portal.
Without a doubt, the highest-value redemption (and the reason why we value Chase points so much) is because of the ability to transfer points to partners for luxury travel.
If you purchase a $30,000 car using the Freedom Unlimited card, you would earn 45,000 Ultimate Rewards points, which is worth around $900, according to our valuations.
The 3 Best Business Cards for Purchasing a Car
Image Credit: Gustavo Fring via Pexels
If you’re purchasing a car for business purposes, you’ll want to make sure that the transaction is separate from your personal expenses.
That’s where business cards come in! Let’s take a look at our favorite business cards for purchasing a car.
Card Summary
| Card |
Welcome Bonus and Annual Fee |
Benefits for Purchasing a Car |
| The Business Platinum Card® from American Express |
- Earn 120,000 points after you spend $15,000 on purchases in the first 3 months.
- Annual fee of $695 (rates and fees)
|
- 1.5x points on eligible purchases of $5,000 or more
- No preset spending limit
- Amazing luxury travel benefits including airport lounge access and complimentary hotel elite status
- Fantastic travel insurance
|
| Ink Business Unlimited® Credit Card |
- Earn $750 bonus cash-back after you spend $7,500 on purchases in the first 3 months.
- Annual fee of $0
|
- 1.5% cash-back on all purchases
- Travel insurance
|
| The Blue Business® Plus Credit Card from American Express |
- Earn 15,000 points after spending $3,000 on purchases in your first 3 months.
- Annual fee of $0 (rates and fees)
|
- 2x points on everyday business purchases (up to $50,000 per calendar year)
- No preset spending limit
|
1. The Business Platinum Card® from American Express
Hot Tip: Check to see if you’re eligible for a huge welcome offer of up to 150,000 points with the Amex Business Platinum! (The current public offer is 120,000.)
Our top business card to purchase a car is the Amex Business Platinum card. It’s similar to the Amex Platinum card, but there’s 1 key benefit that actually makes this version the better card to purchase a car.
The Amex Business Platinum card comes with the oh-so-important earning of 1.5x points on eligible purchases in key business categories, as well as on purchases of $5,000 or more everywhere else (up to $2 million in purchases per calendar year). If you can charge $5,000+ of your car purchase to this card, you’ll earn elevated rewards. A $30,000 car purchase on the Amex Business Platinum card would deliver 45,000 points, which we value at around $990.
Additionally, this card doesn’t have a preset spending limit, just like the Amex Platinum card, so you should have no problem getting a large transaction approved.
You’ll also earn 5x points on flights and prepaid hotels at Amex Travel. Remember, you’ll also get access to the American Express Global Lounge Collection.
You’ll also enjoy access to Fine Hotels & Resorts and Marriott Bonvoy and Hilton Honors Gold status upon enrollment, as well as statement credits every year of up to $400 with Dell Technologies, $360 with Indeed, $150 with Adobe, $120 on wireless telephone purchases, $189 with CLEAR, a $200 airline fee credit, and a Global Entry/TSA PreCheck application fee statement credit.
Other ancillary perks include purchase protection, extended warranty coverage, return protection, travel insurance, and QuickBooks integrations.
2. Ink Business Unlimited® Credit Card
The Ink Business Unlimited card is essentially the “business version” of the Freedom Unlimited card. This card excels in offering unfussy rewards on all your purchases, including car purchases.
You’ll start off by earning a hefty welcome bonus when you sign up for the card and meet the spending requirements. Then, you’ll earn a flat 1.5% cash-back on all purchases with no caps. If you were to purchase a $30,000 car with your Ink Business Unlimited card, you’d receive $450 in cash-back in cash-back earnings.
This card offers an introductory 0% APR benefit, which can help you pay off your balances gradually without accruing interest. But of course, make sure to pay off the full balance before that 0% interest period expires to avoid hefty interest rates.
If you have an Ultimate Rewards credit card like the Chase Sapphire Preferred card or the Chase Sapphire Reserve card, 1.5% cash-back can be converted to 1.5x Chase Ultimate Rewards points, effectively doubling your return on spend to 3%. That $30,000 car purchase could now deliver 45,000 points worth around $900 in value.
Other important benefits of the Ink Business Unlimited card are employee cards for no additional fee, primary rental car insurance, zero liability fraud coverage, purchase protection, and extended warranty protection.
3. The Blue Business® Plus Credit Card from American Express
The Amex Blue Business Plus card is a fantastic business credit card to consider putting your car purchase on. Here’s why: you will earn a straightforward 2x Amex Membership Rewards points on the first $50,000 on everyday business purchases every year and 1x points after that. There’s no need to pay attention to bonus categories with this card.
This credit card comes with a 0% introductory APR benefit, as shown in the table above, that you can take advantage of to avoid interest payments. It also comes with no preset spending limit.
Standard benefits like purchase protection, extended warranty coverage, and employee cards for no annual fee are available (rates and fees); you can even access Amex Offers with this card.
As long as your car purchase is $50,000 or less, you can easily maximize the 2x categories on the Amex Blue Business Plus card, netting you a return of around 4.4% back!
For example, if you spend $30,000 with this card, you’d earn 60,000 Amex Membership Rewards points, which is worth around $1,320, according to our valuations.
Final Thoughts
When it comes to buying a car, you’ll want to make sure that the card you use has a sufficient credit or spending limit.
In addition, the best rewards you’ll earn are those that offer the most valuable points, such as Amex Membership Rewards, Chase Ultimate Rewards, and Capital One Miles.
Lastly, you’ll want to make sure that you’re using a consumer card if you’re purchasing a car for personal use and a business card if you’re purchasing a car for business use.
You’re now equipped with the information you need to be educated on how to purchase a car with a credit card.
The information regarding the Capital One Venture X Rewards Credit Card was independently collected by Upgraded Points and not provided nor reviewed by the issuer.
For the extended warranty and purchase protection benefit of The Business Platinum Card® from American Express, eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. For the return protection benefit of The Business Platinum Card® from American Express, eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for more details.
For the extended warranty and purchase protection benefit of The Blue Business® Plus Credit Card from American Express, eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
For rates and fees of The Platinum Card® from American Express, click here.
For rates and fees of The Business Platinum Card® from American Express, click here.
For rates and fees of The Blue Business® Plus Credit Card from American Express, click here.
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