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Recently there was a news article about a man who bought a $45,000 Honda with a credit card and received 45,000 United Miles for the purchase. But was it really good value?
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48 comments
I thought about buying a car with multiple new credit cards so I can get the sign on bonus. Because even if the dealer add on the let say 3 percents to the cost of the car. With the sign on bonus you'll still end up with a better deal. Have done or seen this before?
But the thing is , this fool DOESNT have $45k cash in the bank how can he pay with cashier check? Obviously he doesn't have the $ that's why using the cc !!
Mr. Credit shifu, sir. Thanks mate. I’ve learned A lot from your videos. Keep on with the good work
Who's pays 45,xxx for a honda ?
Dealerships around this area. Tampa Florida won’t let you use a credit card. Only 3500 max per car. And they don’t want a check wtf, they want you to finance with them so they can make money.. you won’t get much discounts if you show up with a check
What about extended warranty?
It's funny everyone is so worried about being able to use their card to purchase a car but have these people ever heard of negotiating and or finance incentives?
Shoot, some cars offer thousands in discounting on top of using manufacturer financing. Often, you just need to finance the car and pay one month's payment then pay it off entirely. $1,000 off a used car is average, not a great deal. Buying any new car you should be purchasing around invoice pricing if not less. It's one thing to rack up points but if you don't know how to negotiate then you're really no better off. haha
How about just putting the downpayment on your card. Like if you open the chase sapphire Just put 4K on the downpayment and than pay it off the next day and than collect the sign up bonus
Car dealerships get paid out on the back end when you finance the car through them. If you go in and say you'll pay the cash sticker price, they'll tell you they will knock off 1000+ if you finance it then pay it off the next day. That way the banks give them a kick back for the loan.
Interesting take! Makes me think I need to better my negotiating deals or make friends with a salesman 🙂
𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐋𝐢𝐭𝐞𝐫𝐚𝐜𝐲 𝐅𝐨𝐫 𝐂𝐨𝐥𝐥𝐞𝐠𝐞 𝐒𝐭𝐮𝐝𝐞𝐧𝐭𝐬 𝐂𝐡𝐚𝐧𝐧𝐞𝐥
𝟑𝟏𝟗/𝟓𝟎𝟎 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞𝐫 𝐆𝐨𝐚𝐥
I think it is pathetic that he cant negotiate at least a $3,000 off a $45,000 car.
I think it is asking for trouble putting a car on a credit card that has 15% interest.
These stupid people are the reason Credit Card companies are in business making money..
You need to have a Minority Mindset Lol
The dealership took you for a ride with that imaginary 1k fee. That's their responsibility if they wanted someone to buy that car. Then you can start negotiating
If this guy had the credit available on his card that means he must have good credit therefore if I were in his shoes, I would have been offered .9 % financing and put the amount in an investment and probably would have gotten a $1500 reduction in the price of the car from the dealer Bad move by the fool who bought the Honda
Any time a used car dealers tries to sale it higher than the listed price walk out and never return. You really did not save a thousand you most likely lost a few thousand. Never say you will take the car instead play as though you are uncertain even though you really want it. You can probably get it for cheaper than the listed price since you bought it in full.
Chinese billionaire Liu Yiqian used his American Express Amex Centurion card to buy Modigliani’s “Reclining Nude” at auction for $170 million
What if a credit card earn 2-3 miles per $1? Is it good idea to use a credit card to buy a car?
The mistake here was paying over $10000 for a Honda
Thanks for using my suggestion! Sorry for the late reply – I see the video did very well.
Mercedes Amex Plat was the only one worth doing this with. However it is almost impossible to find a Benz dealer willing to give an OK deal and charge the whole thing ont he card
Some dealerships will take a personal check. After all they have all your information. It’s not like you can really hide from them. Unless your clever which of course it won’t matter if you’re asked for a cashiers check.
Can I use my card on motorcycle
Lol he could’ve easily negotiated more than $900
Well considering he just turned a car from secured credit to unsecured is a smart move. Even with the higher interest he is still protected from repossession which would cost way more than any interest rate ever could.
I bought 2 SUV'S with AMEX DELTA SKYMILES CREDIT CARD
You can get your car painted at their body shop…new tires…wheels…etc…etc…etc…$10,000+ on your credit card…BUT DON'T DARE ASK TO BUY A $10,000 CAR WITH A CREDIT CARD???
AMAZON HAS $1,000's in credit card sales every hour…YOU REALLY THINK THEY WORRY ABOUT SOMEBODY SPENDING MORE THAN $3,000???
Sure why not? As long as you pay it off at months end BUT only a fool would do it otherwise! Not to mention the pros/cons of doing so from a CC benefits perspective.
Hey so did you get points back for the $2,000 u spent on the car? N what card u use
The percentage rate alone on a credit card can be like 15-29 percent way more if the person would get if he went through bank financing. He will end up paying way more for the car. Not a smart move.
Credit card interest is 20%+ (maybe 11-12% if you have excellent credit). Car loans are 5% interest. So no.
I was thinking about opening up an Amex gold card and using it for a down payment on a car so that I would receive 50,000 points by spending a certain amount within the first 3 months. I would obviously pay it off in full as soon as possible. But I was wondering if this is a good idea…. any advice? I’m looking for a car and I’ve been wanting to get an Amex card so I figured why not kill 2 birds with one stone and collect the sign on bonus.
paying with a credit card actually makes the vehicle cheaper to pay off than leasing….
Most of the folks in shock about this don’t realize that he likely had the cash to pay for the car in the first place. Why pay cash and get no extra benefits if you can pay on your credit card and get points at 2x or 3x per dollar and get a free trip out of it too?
To have a credit limit high enough for a 45k car means he probably had quite the income and financial stability in the first place. 🤦🏽♀️
Can I used a credit card to pay my car loans? (Monthly payments)
Hey which card do you need to by a car and what color
That new 45 000 dollar car is worth about 41000 dollar after he drove it off the lot.
Maybe he just wanted to have a better credit score and he only bought that car to increase his credit score for a loan he wants to take 1-2 year after this purchase. maybe he wanted a loan to invest in real estate or something.
Be wary of a so called "new" car on the lot that is the previous year's model. I bought a Ford Taurus that the paperwork stated was "NEW", not used and after moving away to another state found out that 1 year was missing from the vehicle warranty (both the bumper-to-bumper & powertrain). I called the Ford Motor Company customer service and they said to take it up with the dealer I bought it from which was now several states away from where I previously lived. I thought I had gotten a really good deal on a new car, but as a used car I overpaid.
I've been at a dealership before, where an older woman bought a brand new 2008 Dodge Caliber (back in 2007) with her credit card… the WHOLE THING. They said sure, ran the card, and she drove off a few minutes later…
$1,000 ONLY?!! I would have tried $2000
lol these comments are funny
You can get way more than $900 off a $45K car. I would be looking for a couple thousand at least. How many months did the guy take to pay for the car? If he paid it back right away and paid no interest and got more perks back then maybe it would have been worth it. As it stands he might feel good about getting the points but he made a lousy deal. One last thing. Did he buy it with a company credit card. Then he gets the points and doesn't pay for it and it's tax deductible for depreciation.
I think the niche here could be putting a portion on a card for a signup bonus (or two separate cards with signup bonuses if they allow it), possibly with a 0% interest promotional period, then you can still get out ahead on the cash back vs price increase due to the extra points or miles or whatever from the signup bonus. as with anything it should be an a la carte analysis of everyone's situation
Did credit card guy save on interest in long run?
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Won’t be surprised if I see that guy on Dave Ramsey