Can I Use My Amex Card to Buy a Car?

Buying a car is one of the biggest purchases many people will make. With costs quickly rising, more and more people are looking for ways to pay for a new or used vehicle without draining their bank account. This leads many to wonder: can I use my Amex card to buy a car?

The short answer is yes, you can use an American Express card to finance the purchase of a new or used car, truck, SUV, or other vehicle. However, there are some important things to know first about how Amex handles auto purchases compared to other credit cards

How Amex Auto Purchasing and Financing Works

Most credit cards including many Amex cards provide rental car insurance as one of their benefits. However, buying and financing a vehicle is different.

Amex has a program called Auto Purchasing Program that allows you to use your eligible American Express card to make a down payment or pay for an entire car purchase However, American Express does not actually provide any auto financing or long-term payment plans directly

Instead, the Auto Purchasing Program connects you with a participating dealership that has partnered with Amex. That dealer can then assist you with third-party financing options from their network of lenders. So you get the convenience of using your Amex at initial purchase, while still taking advantage of outside financing.

This makes Amex auto purchasing more like a conduit to streamline the buying experience, while still relying on traditional auto financing for any borrowed funds.

Amex Cards Eligible for Auto Purchasing

Not all American Express cards allow you to tap into the Auto Purchasing Program. To use your Amex card to buy a car, it must be one of the following:

• American Express Platinum Card
• American Express Gold Card
• American Express Green Card
• American Express Corporate Cards (some corporate accounts may block this benefit)

As you can see, the program is mostly for personal Amex cardmembers, with a few corporate cards included too. Amex Blue Cash cards and others are not eligible.

One advantage of using an eligible Amex card for even just the downpayment is you can earn rewards points or cash back on those funds. However, you likely won’t earn rewards on any financed amount over time.

Process of Using Amex Auto Purchasing

If you have an eligible AmEx card, the process of using it to buy a car is straightforward:

1. Find the car you want to buy at a participating American Express Auto Purchasing dealer. You can search for local participating dealers on the Amex Auto Purchase Program website.

2. When at the dealership, let them know you want to complete the purchase using your eligible Amex card through the Auto Purchasing Program.

3. The dealer will walk you through available financing options from their lenders to cover any financed amount beyond your Amex down payment. This gets you set up with traditional auto financing.

4. Complete the Amex payment for the down payment or full purchase amount along with finalizing your outside financing. Then drive off the lot!

One thing to note is you may not get the full perks of buying with an Amex, like return protections, on the vehicle purchase itself. But using the card for the down payment can still help earn rewards and simplify payment.

Benefits of Using Amex Auto Purchasing

There are a few advantages to tapping into the American Express Auto Purchasing Program if you have an eligible card:

• Earn rewards: Use rewards points or cash back from your eligible Amex for the down payment amount.

• Buyer protection: Get coverage for issues like dealer insolvency that may impact delivery of the vehicle when using Amex.

• Streamlined process: Paying with Amex allows for fast, seamless payment through a dealer in their network.

• Flexibility: You’re not limited only to Amex financing. Outside financing can be used for longer-term payments.

• Convenience: Avoid having to handle cash, checks, or multiple payment methods for the downpayment amount.

While the program has benefits, you still need to rely on other financing for any amount beyond the Amex payment. And perks like purchase protection likely won’t apply to the vehicle itself. But it can still simplify the buying process.

Alternatives to Amex Auto Purchasing

The American Express Auto Purchasing Program provides a nice option for cardmembers with eligible cards. However, it’s not the only way to buy and finance a car. Alternatives beyond only using Amex include:

• Taking out a traditional auto loan from your own bank or lender.

• Using outside financing the dealer provides on any amount beyond the Amex down payment.

• Paying for the full purchase amount in cash or with a debit card instead.

• Looking into manufacturer financing deals and incentives.

• Considering a secured auto loan using the purchased vehicle as collateral.

• Finding financing through a credit union, which may offer lower rates.

The right choice depends on your financial situation. Be sure to compare all options to find the best auto financing rates and terms for you.

5 Tips for Buying a Car with Your Amex

If you decide to use your eligible American Express card to purchase a new or used car, keep these tips in mind:

• Check Card Eligibility: Double check your Amex card is one that is eligible for the Auto Purchasing Program.

• Compare Overall Deals: Don’t focus only on the Amex benefits. Compare bottom line pricing across different dealers.

• Read the Fine Print: Review terms for both the Amex program and any financing carefully before signing.

• Ask About Perks: Dealers may exclude purchase protection or other Amex perks, so ask about coverage.

• Have a Backup Payment Plan: In case Amex payment won’t process for the full amount, have another payment method ready.

The Bottom Line

At the end of the day, the most important factor is finding the best overall deal on your next car and getting financing at competitive rates that works for your budget. But for eligible cardholders, tapping into the American Express Auto Purchasing Program can provide some nice conveniences and rewards for using your Amex card to buy a car.

Just be sure to read the details closely and compare all financing options. And consult the Amex website or call their customer service number if you have any additional questions before driving off the lot in your new ride!