Automotive Credit Cards

Automotive credit cards refer to those with programs of reward points that can be used towards rebates or discounts for automobile purchases or leases. Many of these cards also generate reward points that can be used towards vehicle repairs and maintenance. Specific credit card issuers typically sponsor specific vehicle brands as a way to build customer loyalty towards both. There has also been an increase in flexible automotive credit cards that can be used for different manufacturers. As with any types of credit cards, the terms and conditions vary by the individual credit histories of potential customers as well as company policies.

Credit card customers with good to excellent credit histories are able to take advantage of savings with automotive credit cards. For example, some of these cards offer cash-back percentages on any types of purchases. These typically range from 3% to 5% that can be put towards the purchase of a new vehicle from a certain automaker. Some companies place upper limits on the number of points that can be transferred into cash savings, usually a maximum of $2,000-$3,000 off the purchase price, so it is important to first read the fine print carefully before planning to use one of these reward programs towards buying a new car.

Automotive credit card offers have also been tailored to the business community. Company owners who use at least one vehicle for their day-to-day operations can qualify for one of these credit cards with extended upper limits on the number of reward points they can earn. Some credit card issuers even offer terms of no limits at all on the number of points for customers with qualifying applications.

The reasoning behind issuance of these types of credit cards is that vehicles are among the largest purchases that consumers make. Therefore, some credit card companies are more willing to risk smaller profits per customer through the use of reward programs because consumer loyalty offsets these small losses in the long run. Due to the current economic climate, choices for automotive credit cards by vehicle makers are more limited than in the recent past. However, those that are still going strong are the ones that offer more rewards to longtime customers.