Can a credit card be used as a down payment?

Credit cards are a great no-fuss alternative to cash and a lot of car dealerships are fine with your use of them for a down payment. Paying with one can also garner you points, miles, or cash back from the card’s issuer. Just be careful about the annual percentage rate (APR).

Can you make a down payment on a car with a credit card?

It’s possible to make a down payment on a car with a credit card, though usually only when buying a car from a dealer. Purchasing a car from a private party will likely require cash, check or electronic transfer from a bank or other financial institution. Before using a credit card for a car purchase, it’s important to consider several key points.

What is a good down payment for a new car?

An appropriate down payment size can depend on whether the purchased car is new or used, the buyer’s credit rating, the dealership and the auto loan terms. Generally speaking, the more you can put down, the less interest you’ll pay over time, but the average down payment is between 10% and 20% of the vehicle’s cost.