The short answer: yes. But there are a few things to understand before going this route. For starters, make sure you’re using the credit card limit wisely. Often, an auto financing loan will have a lower interest rate than your credit card, meaning a car loan may ultimately cost you less in interest and fees than your credit card would.
However, if you have the cash available in your savings account to pay for the car in full, and your credit card offers rewards such as cash-back points or airline miles, you could purchase the car with your credit card, then immediately pay off the balance — and enjoy your newly earned credit card rewards!
You can also choose to pay for part of the vehicle with a credit card, such as the down payment, and take a loan out for the rest of the cost. This lowers the loan amount borrowed, which means a lower monthly payment and loan interest. And you can still reap some credit card rewards!
Just remember, if using your credit card to pay for any portion, make sure you can pay it off by your next billing statement to avoid a large interest fee.