Less than $2,500 More than $2,500
Always Never Sometimes

Auto Credit Cards

Auto credit cards are a very wise choice in the world of rewards cards. By using such credit cards, you accumulate reward points that you can use towards the purchase of a new car. Auto credit cards provide you with a solid way to reduce the amount of money you need to put down when you are buying one of your most costly purchases. For this reason, credit cards affiliated with car companies are a great choice amongst rewards cards.

The Benefits Of Auto Reward Cards

Many rewards credit cards are very flexible. They offer a choice of which types of rewards you wish to receive. You may take the points you have accumulated and use them towards a cash back reward, specific products, services or other expenses. However, auto rewards cards tend to be mostly directed at benefits in terms of purchases at dealerships. This may include any or all of the following: new car purchase, leasing, used car purchases, parts and service. Select cards also offer the option of rewards in other forms also, including cash back benefits.

The auto credit card is full of benefits compared to other credit cards. Many of these benefits are the same from one type of auto credit card to another. There are typically excellent introductory offers of 0% financing on transferred balances for the first 3 to 12 months, depending on the card. Such transfers are also typically eligible for rewards, although the rate of rewards may be lower than the rewards earned for purchases. This is a rare feature in the world of rewards credit cards. 0% financing is also typically available on purchases in the first months of having your credit card also. There is typically no yearly fee on this type of credit card. Such cards also allow for unlimited accumulation of points; however such points will often expire after a certain period of time.

Getting The Most From Auto Credit Cards

Your automobile rewards credit card often offer you different rewards depending on how you use your card in terms of earning points and in terms of spending them. You often receive greater rewards when you use your card at the dealerships affiliated with your card’s brand. Some cards also encourage you to make purchases at other specific retailers in order to gain extra points. The bonus rewards you can earn from such spending habits range from double to more than 10 times the number of rewards.

Differing rates of return on rewards are common depending on whether you use the rewards towards a car of a certain brand or not. If you choose to buy a new car from the dealership affiliated with the card you have, you will get the maximum rewards possible. Using those points with a competitor brand or for a used car will usually diminish the value on the reward points you are eligible to redeem.

Maximum benefit from your card comes with wise, strategic use of the card and in choosing the right card for you. It is very important to choose a card that is affiliated with the car company you are most likely to buy from. If you have your heart set on a Toyota for your next vehicle, be sure you don’t choose another type of auto reward card just because its advantages are better.

In order to gain the most rewards in the shortest time possible, try to use only your auto credit card for all purchases you make, even things like groceries. Check to see which regular monthly bills you can pay with your credit card also. Many of the bills we pay with automatic bank withdrawals or even checks can also be made by credit card.

One of the most important things to keep in mind when it comes to using an auto credit card, or any type of credit card, is to manage your credit wisely. If you decide to use an auto rewards credit card in order to help with your car buying expenses, you should be prudent in the use of your card. If you carry a balance and end up regularly paying interest, you may be completely undoing any good you are doing with the rewards. The most advantageous way to use any rewards credit card is to pay it off completely at the end of each billing cycle. That way you get all the benefits and none of the fees.

Who Offers Auto Credit Cards

Currently, multiple car companies offer automobile rewards credit cards in order to attract, keep and help customers. They realize the value of such programs in creating customer loyalty. Active issuers of auto credit cards include the following:

  • GM
  • Mercedes-Benz
  • Toyota
  • Volkswagen
  • Subaru
  • Lexus
  • MINI

Several such auto rewards credit card plans are no longer in existence. The Dodge Rewards Visa program ended in 2009. Ford had a rewards credit card program but phased it out more than a decade ago. The Mazda credit card ended over 2 years ago. With the changing American economy, more such plans may go this way or may instead intensify their marketing and encourage even more people to take advantage of their plan in order to save on the cost of cars.

Other “automobile” rewards programs exist, but are not true automobile plans. Honda has a plan that allows you to accumulate rewards points through the use of the card in dealerships and other retailers but the rewards can not be used towards a Honda automobile, but for recreational vehicles only. Goodyear Tires has a plan with benefits only useful on the purchase of tires. Discover offers an Open Road card which gives you a great opportunity to build up rewards from gas and other car maintenance purchases. Rewards are typically in money-back form.

Rewards cards that offer points exchangeable towards automobile purchases and other automotive-related benefits have been available for a number of years. In fact they have undergone a variety of transformations in that time also. As the economy changes and the auto companies change it is important to use your rewards points sooner rather than later. While companies will typically give you advance notice if their plan will end, the possibility exists that some companies may not be able to and you will end up with points you can’t use.

Compare Auto Credit Cards Now!

Whether you are just starting out and saving for your first car, trying to make the best use of your money, attempting to keep your car payments as low as possible or wanting to buy that dream car that is just out of your range, auto credit cards can help if you commit to using them wisely. When you are ready to get your very own auto credit card for rewards to help pay for your next car, check out the credit card chaser above to locate the best credit card to match your spending habits and your goals. Get in gear, and use it today!

Similar Articles:

Credit Cards

Disclaimer: This content is not provided or commissioned by American Express, Visa, MasterCard, Discover, or any other credit card company or issuer. The opinions expressed here are the author's alone, not those of any credit card company or issuer, and have not been reviewed, approved or otherwise endorsed by any credit card company or issuer. Credit Card Chaser may be compensated through various affiliate programs with advertisers. As always, Credit Card Chaser is an independent website commmitted to helping people research credit card offers and find the best credit card!

Less than $2,500 More than $2,500
Always Never Sometimes