29/03/2023
Credit Card
Using a credit card to buy an auto is possible only if your credit limit is high enough to cover the cost. On top of that, there are numerous freights that you may need to cover.
This type of sale can be arranged by the dealer and requires the issuing bank's approval. Take note, however, that not all dealerships accept this auto financing scheme. Some dealers may just accept a portion of the auto’s selling price to be charged to the credit card.
Pros
With an auto purchase going hundreds of thousands of pesos, you can earn thousands of credit card points, long hauls, or cashback. Buying an auto with your credit card can work if you consistently pay off your balance. The interest will accumulate if you do otherwise
Cons
As credit card interest rates are advanced than that of regular auto loans or dealership financing, anticipate to pay further on interest. The interest can be stunning if you can’t completely pay off your credit card balance after buying an auto.
