Car rebate credit cards: How to save on your next auto
By Ben Woolsey
Maybe you can dicker with the best of them on the car lot. But how can you save even more on their next car or truck? One word: plastic. As in credit cards.
Major credit card issuers have long-standing partnerships with automakers and the list has grown recently to include almost every manufacturer. Credit card programs such as the Volkswagen Platinum Visa and Subaru MasterCard from Chase offer up to 3 percent cash back rebates that can be applied toward the purchase of the manufacturers new cars, trucks and SUVs.
The Volkswagen Platinum Visa card allow cardholders to apply rebates toward new Volkswagen cars and SUVs along with VW gear, service, and even interesting merchandise not related to Volkswagen.
Also of note, there are generic automobile rebate credit cards on the market, such as the Driver's Edge MasterCard from Citi. The Driver's Edge card allows cardholders to earn rebates that can be applied toward any make and any model of new or even used car purchase, as well as maintenance costs on a car they already own. And, the card pays a full 6 percent rebate on everyday purchases at supermarkets, drugstores and gas stations. These types of generic automobile rebate programs can be a great deal for people who don't have long term loyalty toward a certain vehicle manufacturer. Also, people's car needs and desires shift over time, so while you might want a Corvette from GM today, a Honda minivan might be more appealing in a few years. So, if you like the idea of saving on the purchase of your next vehicle, but don't know what that make of car you want it's probably a good idea to go with a generic auto reward credit card like the Driver's Edge MasterCard.
As with most rebate credit cards, automobile rebate credit cards allow you to earn a percentage cash back on all purchases made with the card. Rebates earned are reflected on the cardholder billing statement, both on a monthly and program-to-date basis. Once you get ready to purchase a new vehicle you can have the rebates earned applied to reduce the final negotiated cost of the car, truck or SUV. All it takes is a phone call to your credit card issuer to get the rebate transfer put into motion.
To shop and compare reward credit card offers that provide rebates on automobiles please visit our rewards credit card section.
Published: July 10, 2005
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