Can you buy a car with a credit card?

Technically, yes, if your credit limit can cover the cost of the car. However, car dealerships may have a limit on the dollar amount that can be charged on a car purchase and may not allow the entire cost to be charged. If you do charge the entire purchase or even a large down-payment, be sure you can afford to pay your credit card bill the following month. Credit cards charge higher interest rates than car loans, for example 18% interest on credit cars vs. 4% on a car loan. If you cannot pay the bill in full, you will be losing a great deal of money buying a car with a credit card.