Carmax bill pay11/28/2023 Tesla only allows credit cards to be used toward paying the initial order fee. Some online used car dealers such as Vroom and Cars24 do accept credit card payments while others like Carvana and CarMax do not. However, some dealers may allow you to use a credit card to make a down payment up to a certain limit. Do Car Dealers Take Credit Cards?ĭepending on the price of the car you’re looking to buy, it’s unlikely that your car dealer will allow you to pay the full amount with a credit card. Once again, you can use a service like Plastiq to pay off your auto loan for a fee of 2.9% if direct payment isn’t possible. This fee can vary, but often falls between 2% to 4%. If your lender does allow you to pay off your loan with a credit card, it may look to cover its transaction fee by charging you a convenience fee. If you’re curious, you can call your lender to see if its payment policies are more flexible for loan payoffs. Still, you may have a slightly better chance of convincing your lender to accept a credit card when you’re paying off your loan since future loan delinquency wouldn’t be a concern. A transaction fee would still apply so accepting final payment via credit card would eat into the lender’s profit. It’s not probable that your lender will allow you to pay off your loan with a credit card either. Can I Pay Off My Car Loan With a Credit Card? One exception may be if you used Plastiq for a short period of time to help you reach the minimum spending requirement for a credit card welcome bonus. In most cases, you won’t come out ahead by using Plastiq to make a credit card payment, even after earning rewards. That’s a higher percentage than most rewards cards pay for non-bonus categories. But it’s important to note that it charges a transaction fee of 2.9% on credit card payments. Plastiq advertises its services as a means for individuals to earn credit card rewards on their everyday bills. Plastiq takes credit card payments for a variety of bills that don’t normally accept credit cards (such as auto loans, rent, mortgages, and utilities) and then forwards the money to your payee in the form of a check or ACH payment. Can I Use a Third-Party Service To Make a Credit Card Car Payment?Įven if you can’t make a car payment with a credit card directly, you may still be able to do so by using a payment service like Plastiq. Be aware that Western Union charges a fee for its services and other fees may apply from your card issuer including a cash advance fee. One exception is GM Financial which states that it allows borrowers to pay with a credit card through Western Union. Most of the major car manufacturers’ finance arms prohibit credit card payments. So by allowing credit card payments, lenders would be increasing their risk of borrowers becoming overwhelmed by debt and potentially defaulting on their loans. With credit cards, however, interest can quickly grow and compound when cardholders carry a balance. And since they’re installment loans, the total interest paid over the life of the loan is fixed. This second point is important because auto loans have lower interest rates on average than credit cards. Second, lenders know that if they accept credit card payments, their borrowers would just be trading one form of debt for another. For one, lenders don’t like to pay the transaction fees of 1.5% to 3.5% that come with credit cards. The chances are slim that your lender will allow you to make a car payment with a credit card. Can I Make a Car Payment With a Credit Card?
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