Put your entire car purchase price on a credit card?

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BonzaiDuck

Lifer
Jun 30, 2004
15,699
1,448
126
It could beg the question about your relative wealth as it relates to logical economic behavior. If one has limited means but some ability to buy a new car, he would plan the purchase. He cannot afford to make mistakes. He might have a range of payment mechanisms to use, and select the one which allows him to pay for the vehicle in a way that fits into his general financial plan.

If one doesn't have "limited means", would it justify behavior that the first type of person wouldn't consider? A fool and his money are soon parted. "Unlimited means" eventually would lead to "limited means". So it can't justify foolishness, even if the prosperous party in question thinks that it does.
 

deadlyapp

Diamond Member
Apr 25, 2004
6,582
698
126
It could beg the question about your relative wealth as it relates to logical economic behavior. If one has limited means but some ability to buy a new car, he would plan the purchase. He cannot afford to make mistakes. He might have a range of payment mechanisms to use, and select the one which allows him to pay for the vehicle in a way that fits into his general financial plan.

If one doesn't have "limited means", would it justify behavior that the first type of person wouldn't consider? A fool and his money are soon parted. "Unlimited means" eventually would lead to "limited means". So it can't justify foolishness, even if the prosperous party in question thinks that it does.
You're missing an entire variation of people who live as if they have limited means (eg frugally) which allows them to splurge (unlimited means) on things they value or high value items.

I have a good friend who lives quite frugally day to day - rents a fairly inexpensive apartment, has an older vehicle with no payment, not a lot of material "things" - but because of this has significant wealth that allows him to splurge on individual things like travel, a fun vehicle (he owns a 1991 ferrari), expensive meals on occasion, and really never concern himself with how those costs will impact his life.
 

BonzaiDuck

Lifer
Jun 30, 2004
15,699
1,448
126
You're missing an entire variation of people who live as if they have limited means (eg frugally) which allows them to splurge (unlimited means) on things they value or high value items.

I have a good friend who lives quite frugally day to day - rents a fairly inexpensive apartment, has an older vehicle with no payment, not a lot of material "things" - but because of this has significant wealth that allows him to splurge on individual things like travel, a fun vehicle (he owns a 1991 ferrari), expensive meals on occasion, and really never concern himself with how those costs will impact his life.
I can't disagree with that at all. We're all trying to reach an optimum based on our preferences -- indifference curves -- and our budget line. It's especially nice of there's enough slack such that hard choices need not be made on a priority of some items.

If you really really want a Ferrari, then you may have to do things to afford it.
 

nOOky

Platinum Member
Aug 17, 2004
2,827
1,849
136
Credit card rewards simply raise the price of everything, you are not getting free money. But if you are not taking advantage of them and you can you are missing out. We tend to save up and just buy our vehicles, I've never put any portion of it on a cc. My wife is looking for a new vehicle. maybe we should consider it this time, then pay the card off.
 

Genx87

Lifer
Apr 8, 2002
41,095
513
126
Credit card rewards simply raise the price of everything, you are not getting free money. But if you are not taking advantage of them and you can you are missing out. We tend to save up and just buy our vehicles, I've never put any portion of it on a cc. My wife is looking for a new vehicle. maybe we should consider it this time, then pay the card off.

That is what I do. 5K on the card, pay either cash or many times they have a teaser option for financing where they cut the price by 2-5K if you buy using their credit. Then pay off the loan immediately. Just make sure there aren't any penalties for paying off loan early.
 

manly

Lifer
Jan 25, 2000
10,914
2,061
126
Credit card rewards simply raise the price of everything, you are not getting free money. But if you are not taking advantage of them and you can you are missing out. We tend to save up and just buy our vehicles, I've never put any portion of it on a cc. My wife is looking for a new vehicle. maybe we should consider it this time, then pay the card off.
You aren't getting free money, but you are getting subsidized by those who don't benefit from credit card rewards.

To compensate, businesses raise prices, and so cash users (who tend to be poorer) are often subsidizing the perks going to credit card users (who tend to be richer). And the higher the rewards, the bigger the cost to the unsuspecting people paying for it.

So frequent rewards card churners are grifting off of everyone else.

 

nOOky

Platinum Member
Aug 17, 2004
2,827
1,849
136
You aren't getting free money, but you are getting subsidized by those who don't benefit from credit card rewards.



So frequent rewards card churners are grifting off of everyone else.


I know. My wife owns a business, and she pays a portion of the rewards when clients scan their credit cards. So of course she raises her prices to cover that, every business does. It's a cost of doing business if you want to accept credit cards.
 

vshah

Lifer
Sep 20, 2003
19,003
24
81
I'd do it if a dealership let me. Get the points, pay off the balance, then go to my credit union and get a loan if I want to. Many CUs give new car rates for current year cars, even if you already own the car. On a 50k car that's probably a couple free plane tickets worth of amex points...