Reward cards to buy an automobile

Many auto manufacturers have set up credit cards that are advertised as a way of buying a car on rewards points.

These cards are an example of rewards cards.  Rewards cards are a way of building up points for spending in order to redeem them in return for some sort of reward, in this case an automobile.  They are usually offered by an automobile manufacturer, although they are backed up by a payment processor such as VISA or MasterCard.

Some of the most popular cards in the United States are offered by automobile manufacturers, with the General Motors cards being some of the most popular with millions of card holders.

Many automobile cards have a cash back alternative.  Like many other branded reward cards, this is less generous than the rewards from the manufacturer, however the cash back rates do tend to be equivalent to the specialist cash back cards, although they do not tend to have the introductory periods when there are accelerated cash back rewards.

Some automobile cards offer the generous discounts not only towards the purchase of a new vehicle but also towards the cost of a used vehicle or maintenance and parts.  This can increase the flexibility of the card, although this differs from manufacturer to manufacturer.

Many automobile manufacturers require a card holder to contact the manufacturer in advance when they wish to redeem to points to buy an automobile, although again this differs according to the card with some manufacturers like Toyota only requiring the card holder to produce the card and the points are automatically credited.

There can also be restrictions on whether the auto financing can be arranged through a company that is not affiliated with the manufacturer, with companies such as BMW insisting on their financing company.  One of the most effective ways to cut the cost of owning an automobile is to get a cheaper source of financing than the manufacturer is prepared to offer, and so this restriction can be quite costly.

With most cards there is a limit on how much of the card reward points can be used to reduce the ticket price of the automobile.  This can mean that it is the equivalent of a small discount on the auto.

There are a number of manufacturers with these programs, and these include Audi, BMW, Chrysler, Dodge, GM, Jeep, Lexus, Mercedes Benz (which also has a signature card), Mini, Subaru, Toyota, and Volkswagen.