Automobile manufacturer rewards cards
An automobile manufacturer rewards card is one that will allow you to earn points towards the purchase of a new car every time that you use your card. In many cases you will also be able to use the points towards other automobile related expenses. If you use the card correctly it can be a great way to save on the cost of a car for some people.
Obviously an automobile manufacturer rewards card makes the most sense if you are looking to buy a new car in the near future. If you have no intention of buying a new car there is little reason to have one of these credit cards. It also goes without saying that you will need to be interested in the cars made by that specific manufacturer. If you are in this situation then it might make sense to think about an automobile manufacturer rewards card. That being said there are still some things to keep in mind so that you can decide if it is really a good deal.
The biggest problem that you are going to face with an automobile manufacturer rewards card is that you are limiting yourself to one make of car. Very few people are that loyal to one car brand that they know ahead of time what kind of car they will be buying. Most people will put a lot of thought into which car is best before they buy, if you want to use your points you will be severely limited. That being said if you are one of those people who is loyal to a specific brand it might make sense to get their card.
The other issue that you are going to face is that when you buy a car most people will negotiate the price. Rarely is it necessary to pay the sticker price. The problem is that your negotiating power all rests on the fact that you do have the option to leave and buy a car from somebody else. If you are using your points towards buying a car the dealer is going to know full well that you aren't going to go buy someplace else. That makes it hard to negotiate a good price. In fact you may actually end up paying more than you would have if you had been in a stronger negotiating position.
Like all rewards cards there is also a risk that you will over use your card in order to collect points. It is important to keep in mind that the points don't even come close to offsetting the interest that you will pay if you don't pay off your bill in full each month. It does not make sense financially to run up credit card debt that you have to pay a very high interest rate on just so you can save a few bucks on a car.