I believe they will only allow you to pay up to $3000 on a credit card purchase for a car so if you have a 0 % deal I see nothing wrong with that and in fact it is what I did when I purchased my own car. There is some strange law about impulsive buy that limit the amount the a dealer can accept on credit card.
I would work on getting preapproved before going to the dealer. I have used COSTCO which has a partnership with Capital One. I have found the blank check program is very easy and provides me with leverage in negotiatiating.
You can gain access to the credit union by paying a 20$ fee. The rates quoted on new car purchase are 5.29% on up to 72 months financed.
This is a good time of year to buy a car. Your decision should start by identifying whether you are going to go with the 07 or 08 model. The benefit to the 07 is that they usually come with good cash rebates. The downside is that if you look to sell it, it is already a 1 year old car.
T
he 08 model is beneficial when you have a shorter holding period. If you keep you car for 3 years you can sell it in 2010 as a 2 year old vehicle as opposed to 3 years old which reduces your holding costs.
