You can buy a car using a credit card and earn points, miles, elite status and more! At least that is what American Express is telling me in an email marketing message they sent today. Consider my points earning world turned upside down after this revelation!
While I understand that it’s not every year that someone purchases a new car, it appears that this is also possible on used car purchases as well, so there are options available. American Express is also claiming a large discount off of the MSRP purchase price if you purchase using their card. While I am skeptical on whether those savings are just standard discounts offered by most dealers, I am intrigued with the concept of earning a stash of miles the next time I am in the market for a car (which will be late this year or early next year).
Buy a Car Using a Credit Card
Here are the steps needed to get started:
1) Visit the American Express Network Auto Purchasing Program Website
You can visit them by going to https://amexnetwork.truecar.com/ and search for the car you are interested in purchasing.
2) View Results for Your Car of Choice
I wanted to see if I could purchase my current car, so I looked for the Infiniti G37 Sedan.
According to the site, I could save over $5,000 by purchasing the car using my American Express card. When looking at my local Infiniti dealers, I see that they only list cars by their MSRP:
So far so good, I guess, but are there any dealers in my area?
3) Check to See if Any Local Car Dealers Accept American Express for Purchases
This is where I start to see a break down in my hopes and dreams. It appears that in my area the dealer only accepts American Express cards for up to $2,500.
The other problem is that they are forcing me to fill out all kinds of personal information to see the name of the dealer. No dice for me, because I don’t want to be hounded by a salesperson when I’m not ready to purchase.
4) Go Through Your Purchase Process
I would assume that this is a logical next step if you see a match, but I have not done this myself.
Things to Watch Out for When Purchasing a Car with a Credit Card
Before rushing out to make a purchase yourself, make sure you fully understand what you are getting yourself into.
- Make sure you understand the terms of paying off your balance. If your balance is owed within a month of purchase, then make sure you have enough money to pay for the car outright.
- If you are seeking an auto loan, make sure that you can use these funds to pay your credit card and that it’s not required that you pay the dealer directly.
- Make sure that you use the right card when purchasing to maximize rewards.
I am not going to go out of my way to purchase a car now, but I am definitely going to keep this in mind next time I am looking!
Perks You Can Get from Purchasing a Car using your American Express Card
Hilton Honors Diamond Status
You can earn Hilton Honors Diamond Status if you use the Hilton Surpass card and this puts you over $40,000 in annual spend.
Delta Silver Status (or higher)
If you use the Delta Reserve card or the Delta Platinum Amex, you can earn up to 30,000 Medallion Qualifying Miles (MQMs) by meeting spend thresholds. If your annual spend on the Delta Reserve card reaches $60,000 including your car purchase, you can earn Delta Silver status at a minimum (25,000 MQMs required for Silver status) and even more if you fly Delta currently.
15,000 American Express Membership Rewards Points
Using the American Express Gold Card, you earn an incremental 15k Membership Rewards points after spending $30,000 in a year using the card. That is in addition to the 30k Membership Rewards points you would have earned on spend alone.
Has Anyone Done This Before?
Authors Note: I have never actually purchased a car using a credit card beyond making a down payment of around $2,500 using a credit card. I cannot endorse the process of purchasing a car using a credit card outright. You should be sure to do your research before attempting to buy a car using the methods outlined by American Express.
