Buying a car - cash back credit card?

MikeA73

Hi

I'm looking at a new (second hand) car this spring. Cash is in the bank, so is there anything I can do to get some decent cashback by paying for it on a credit card? Lots of them seem to have relatively low max cashback values. I'll also need a decent limit on it as the car is likely to be ~£20k.

TIA

Mike

[Deleted User]

First you need to take into account any fee you might be charged for paying via credit card - this could end up outweighing any cash back you might get.

Second, I think it's unlikely that you will be given a £20K limit on a new card - what limits do you currently have?

One other option would be to get an Amex Gold card - it's a charge card so there is no limit but you have to pay in full each month. You won't get cash back but Amex Member Rewards points at a rate of 1:1 (so 20K points). The card has an introductory bonus for spending £2000 in the first three months so obviously this transaction would qualify for that too so your total earning would be 40K points - enough for a few different things depending on what you're interested in.

You would have to check if the retailer accepts Amex though.

MallyGirl

Many dealers accept a deposit on a cc but if you want to pay the balance the same way they will hit you for the fees (and some usually).

MikeA73

Thanks for the replies. If they do add a CC surcharge that'll wipe out any cashback I'm sure. Maybe debit card is the simplest.

YorkshireBoy

MikeA73 wrote: »

Thanks for the replies. If they do add a CC surcharge that'll wipe out any cashback I'm sure. Maybe debit card is the simplest.

You should pay 'something' (ie the deposit) on a credit card, in order to secure section 75 protection.

bigadaj

I just bought a car from a small local dealer a couple of weeks ago, older focus as I'm between jobs and not sure if I'll be rail commuting or doing large mileage. Car was just over two grand, put £100 on credit card and the remainder on debit, everyone happy.