Paying a down payment on CC??

Discussion in 'General Discussion | Credit Cards' started by Milesbaby, Feb 5, 2013.  |  Print Topic

  1. Milesbaby

    Milesbaby Member

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    Just wondering any of you done this?? I'm planning to buy a house and a new car next few months, and wondering if I can pay it with SPG. I got the cash to pay for it after it post,.
     
  2. gleff
    Original Member

    gleff Co-founder

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    Many car dealers will impose a limit on the amount you can put on your card, but it's something you can negotiate with them. House? Not likely.
     
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  3. edekba

    edekba Gold Member

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    I've seen some ppl say they've put the DP on a car or sometimes bought a car out right using a credit card... again depends on who the seller is.
     
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  4. servo

    servo Silver Member

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    ..and sometimes the amount of the sale.

    However, I personally think it's a bad financial move to put a down payment of cash on a depreciating asset. If you're buying outright, that's one thing (and I'd even argue with you there unless you could pay for it in full on a cc and get the miles), but not to simply lower monthly payments on the car note.
     
  5. malikguy

    malikguy Silver Member

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    Agree and disagree. Yes, bad to invest funds in a depreciating asset, however, when I purchase a new car, I generally pay the TT&L (tax, title & licensing) with my credit card. Some times I put a little bit extra down just to make sure that I am not upside down when I want to get out from under it. I put the money into it up front knowing that it will lose value.

    The amount that you can put down on a CC with vary from dealer to dealer. The most I've personally done is $5k and at luxury dealerships, it can be even higher from what I've heard.

    Regarding the house, no payment with a CC will be accepted for a down payment, cash / check only. You also sign something before you close saying that none of the funds used to pay for the down payment of your new home was borrowed funds.
     
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  6. edekba

    edekba Gold Member

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    Well I think we've all heard how celebrities & the such will goto a dealership, swipe their black card & move along. So yeah it is doable.
     
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  7. HaveMilesWillTravel
    Original Member

    HaveMilesWillTravel Gold Member

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    And the dealer will gladly add the 5% they pay to Amex onto the price of the car.
     
  8. edekba

    edekba Gold Member

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    yeah forgot about that ;)
     
  9. MX

    MX Gold Member

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    When i was buying a car recently, the dealer allowed up to $5,000 to be charged to a CC.
     
  10. iolaire
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    iolaire Gold Member

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    Bought a Hyundai recently and the dealer would do $2,500 no questions asked, did not have other spend to do so did not push for more.
     
  11. LAM

    LAM Silver Member

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    I don't think the mortgage company would let the cc fly on the house. They get very particular sometimes about the source of funds for down payments, closing costs etc.
     
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  12. Jimgotkp
    Original Member

    Jimgotkp Gold Member

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    Had no problems doing a $5K and $4K down payment with a CC
     
  13. Lufthansa Flyer
    Original Member

    Lufthansa Flyer Gold Member

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    when I bought a new car, I was able to put 50% on my card. A few months later, same for my wife. Easy biz class ticket!
     
  14. Counsellor
    Original Member

    Counsellor Gold Member

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    I did $10K on a new car purchase in 2008. Salesman had to "get approval" from the manager.

    Did this *after* we had negotiated the price and terms, so the dealership couldn't add the credit card fee to the price. I had negotiated quite a savings already, but got to wondering if I had stopped too soon when they agreed to take the card for the down payment. Oh well, it was the end of the season and they were moving 2008 product to make room (physically and on the floorplan financing) for the new 2009s, so maybe that entered into their calculations.
     
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  15. infamousdx

    infamousdx Silver Member

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    If they agreed easily, then I guess you did stop too soon and they were comfortable with the price. If a car dealer accepts a CC for the down payment, you can be sure they're not losing money on the sale. You can always get a better deal with cash.
     

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