Purchasing NSX Credit Card

NSXFRIEND

NSXFRIEND

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I have read of some individuals puchasing their cars on a credit card and was curious to find out if anyone has followed this route with their NSX? It is entirely up to dealer how bad they want to make the sale and as they pay fee 2-5% for customers using their credit card. They may allow up to 5-10k on credit. So the advantage for the consumer being title in hand and possible rewards points and cash back. Disadvantage is unless you have 0% APR and can transferr it to another card at the end of the term or refinance you will pay big bucks in the end.

Has anyone bought their NSX in a Credit card, positive/negative experience?
 
Most dealers do not allow a full car purchase on a credit card, due both to the interchange fee as well as (I assume) the possibility of a disputed charge after the car is out of their possession. Most allow up to $3-5k or so in my experience.
 
My credit card company will let me take up to $50k and they deposit it directly into my checking account so I can buy whatever I want with CASH.:smile:
 
When I purchased my IS 300 back in 03, Lexus allowed me to put 7k of my downpayment on my credit card.

Just be careful, make sure to pay the balance off after you get your statement or you'll get smacked with finance charges.
 
This ia a horrible idea. I work for a consumer finance company and can tell you that credit cards are the devil. They are on revolving (compounding) interest terms which means they accrue interest daily. Once you utilize over 50% of your allowable limits it will also impact your credit negatively. Once your scores drops, the creditor is able to increase the rate, sometimes giving you the "default rate" which can be 29%. In the end, you'll be making payments that will go entirely to interest. It's not a good idea.
 
Assuming the following:

You can have a Credit Card open with a 0% APR for 12 months or something. You can request a check directly from them that you can make out to the Dealership (Discover even sends me a hole bunch of them in the mail every month...)

Write the check, and there is no CC processing fee. Once that is done, your good for the money. I would suggest however to pay it back ASAP, so you don't have debt over your head. But it can be done.
 
Big_D said:
My credit card company will let me take up to $50k and they deposit it directly into my checking account so I can buy whatever I want with CASH.:smile:
Click to expand...

There may be a fee for that service. Many credit cards charge a cash advance fee of a couple percent AND there is no grace period when it comes to interest for cash advances, meaning interest begins accruing immediately on cash advances even if you have no other balance. Not after your payment is due, as most purchases do. Also the interest rate for cash advances may be a couple percent higher than the interest rate applied to purchases. Last, your credit limit for cash advances may well be lower than your total credit limit.

In short, read your terms and conditions VERY carefully when it comes to cash advances on credit cards so you don't get screwed.
 
The Acura dealer allowed me to put 3k on my cc to buy the NSX. It might have cost them 60-120 dollars. It was the only way I could pay for the car. Maybe I should have taken a cash advance and placed those funds in my checking account. I didn't think of that at the time.

I forget if I paid any interest charges.
 
SilverStone05 said:
...Just be careful, make sure to pay the balance off after you get your statement or you'll get smacked with finance charges.
Click to expand...

Exactly. A few years ago I was driving past a dealership and saw a nice Acura Integra I liked and stopped in to haggle. It was after hours, and I wanted the car, so I put my card on the table and said if they wanted the deal, lets buy it right now. They were initially hesitant until I told them I was an impulse buyer and was walking if they did not do this in the next 5 minutes. They did the deal....I paid the car off when my statement came. :biggrin: :wink:
 
So if a dealer allows me to put 10k on a credit card and the rest check, and i have zero APR for next 8 months I can carry the balance and make minimum payments of 2-300 then transfer the balance into another zero apr card and pay zero interest or pay it in full? Is there a catch or is this zero interest strategy going to save me some money?

Thanks
 
Holy crap guys!!!!

I sure do hope you're all financing your car on your credit cards because of business write-offs coupled with big cash back rewards - or possibly you just need to move very quickly to make the deal and don't have time to move funds. Otherwise... WTF!! :eek:
 
NSXFRIEND said:
So if a dealer allows me to put 10k on a credit card and the rest check, and i have zero APR for next 8 months I can carry the balance and make minimum payments of 2-300 then transfer the balance into another zero apr card and pay zero interest or pay it in full? Is there a catch or is this zero interest strategy going to save me some money?

Thanks
Click to expand...



This is what I'm doing. Paid for car with cash & home equity line of credit. Transfer line to 0% credit card for 1 yr. Just before it runs out, transfer to another. Be careful of the transaction charge (usually 3%, sometimes capped, sometimes not. Discover did one with NO transaction fee. Good deal.) Plus, you get the title & no lein.
 
NSXFRIEND said:
So if a dealer allows me to put 10k on a credit card and the rest check, and i have zero APR for next 8 months I can carry the balance and make minimum payments of 2-300 then transfer the balance into another zero apr card and pay zero interest or pay it in full? Is there a catch or is this zero interest strategy going to save me some money?

Thanks
Click to expand...

You guys are missing something. The thing that most consumers don't get is that there is no such thing as a fixed rate card. The companies issue you a card at a rate that is based on you CURRENT credit standings. If your score changes at all from when they give you the card, they can and will increase the rate. This is how they make their money. They will keep tabs on your credit and the second that it drops (because you've gone over 50% of your available limits)they will jack up the rate. The other thing that most people don't think about is that regardless of the rate, it its considered by the credit bureaus as revolving debt. A huge chunk of your score is made up of your "credit utilization rate". This is how much debt you are carrying in relation to the limits. If you exceed 50%, it will absolutely have a negative impact on your credit, and in turn, all of your cards rates will follow. It is a very well planned out cycle on their part. Unless you can pay off the balance COMPLETELY when the statement arrives, it is a very bad idea.
 
sinner said:
You guys are missing something. The thing that most consumers don't get is that there is no such thing as a fixed rate card. The companies issue you a card at a rate that is based on you CURRENT credit standings. If your score changes at all from when they give you the card, they can and will increase the rate. This is how they make their money. They will keep tabs on your credit and the second that it drops (because you've gone over 50% of your available limits)they will jack up the rate. The other thing that most people don't think about is that regardless of the rate, it its considered by the credit bureaus as revolving debt. A huge chunk of your score is made up of your "credit utilization rate". This is how much debt you are carrying in relation to the limits. If you exceed 50%, it will absolutely have a negative impact on your credit, and in turn, all of your cards rates will follow. It is a very well planned out cycle on their part. Unless you can pay off the balance COMPLETELY when the statement arrives, it is a very bad idea.
Click to expand...


If your Fico score changes then yes rates can be changed thanks to some MBA's who came up with this plan. However it will only change if you default on a payment and have late payments. Other factories is opening two many cards at one time or inquires on your account and a high limit request which will take about 2-5 points away which is known as a hard pull. A soft pull is when it does not affect your credit score i.e... you check your score etc.. If you exceed 30% of your limit your score will change. The so called "no limit" accounts from what i have read will show as maxed out due to the liability/high limit, I have not confirmed this yet. I do agree with you that keeping your score at the current or better number is only way to carry a balance. I suppose refinancing the balance is only solution out of that mess.

Redshift the so called no limit/unlimited accounts is not true. A credit card company may offer you high limit but will request proof of funds before authorizing big purchases, even though you may have 200k line of credit. So if your history of credit shows your spending 3000 a month then all the sudden you have a purchase for 50k they will ask prior notification before authorizing the purchase. Some argue that the ads by AMX at www.amexsux.com are deceiving in the commercials showing someone being rejected then the AMX person's magic card is approved for the big purchase, even though technically they are right according to their fine print. Not many choice for high limit cards.
 
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Depends on the dealer, but I don't think most dealers will let you put more than say $5000 on a credit card. I tried to put as much as I could on the card to get miles when I bought my previous S2000 and my current NSX. Neither would let me put more than a few thousand on it.
 
Liquid said:
There may be a fee for that service. Many credit cards charge a cash advance fee of a couple percent AND there is no grace period when it comes to interest for cash advances, meaning interest begins accruing immediately on cash advances even if you have no other balance. Not after your payment is due, as most purchases do. Also the interest rate for cash advances may be a couple percent higher than the interest rate applied to purchases. Last, your credit limit for cash advances may well be lower than your total credit limit.

In short, read your terms and conditions VERY carefully when it comes to cash advances on credit cards so you don't get screwed.
Click to expand...

On mine it is a max $75 cash advance fee. No interest for 1 year...then you can roll it over to another 0% APR rate card...sure beats a 6% auto loan.

I agree, read the fine print first.
 
sinner said:
You guys are missing something. The thing that most consumers don't get is that there is no such thing as a fixed rate card. The companies issue you a card at a rate that is based on you CURRENT credit standings. If your score changes at all from when they give you the card, they can and will increase the rate. This is how they make their money. They will keep tabs on your credit and the second that it drops (because you've gone over 50% of your available limits)they will jack up the rate. The other thing that most people don't think about is that regardless of the rate, it its considered by the credit bureaus as revolving debt. A huge chunk of your score is made up of your "credit utilization rate". This is how much debt you are carrying in relation to the limits. If you exceed 50%, it will absolutely have a negative impact on your credit, and in turn, all of your cards rates will follow. It is a very well planned out cycle on their part. Unless you can pay off the balance COMPLETELY when the statement arrives, it is a very bad idea.
Click to expand...

They can jack up the rate on new purchases, but cant jack up the current cash advance rate unless you are late on a payment. Once I transfer the balance to another card I call the credit card company and ask them to reduce the purchases rate, or I tell them I will cancel my card. Haven't had one say no.

Whether you have 50K on a car loan or on a revolving credit card, it is still considered outstanding debt. 0% APR on a credit card is still less interest than a 6% Auto loan...even with a $75 transfer fee once a year. Just don't pay late...
 
NSXFRIEND said:
So if a dealer allows me to put 10k on a credit card and the rest check, and i have zero APR for next 8 months I can carry the balance and make minimum payments of 2-300 then transfer the balance into another zero apr card and pay zero interest or pay it in full? Is there a catch or is this zero interest strategy going to save me some money?

Thanks
Click to expand...

Yes, you can do this. You just have to be careful and make at least the minimum payments always ON TIME. Miss one and you're done for. You also have to have a good supply of new credit offers with cards that carry a high enough limit for the transfer coming in the mail. (Usually 0% offers are on NEW credit accounts)

If you're worried about your credit, the credit bureaus don't like having too much revolving credit open at any one time. On the other hand, they don't like it when you close accounts either because it negatively affects your debt to credit ratio. :confused:
 
Big_D said:
Whether you have 50K on a car loan or on a revolving credit card, it is still considered outstanding debt. 0% APR on a credit card is still less interest than a 6% Auto loan...even with a $75 transfer fee once a year. Just don't pay late...
Click to expand...

However, an installment (auto) loan with a 50K balance is viewed much more favorably by credit bureaus than a revolving (credit) line with a 50K balance.
 

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