Some might argue that if you can convince the dealership to allow a $45,000 purchase on your card without raising the price it'll be worth the headache for the points. If you value those point at 1.5% like Chris Mixter did, (according to a Marketwatch.com article) you'll make $675. What he failed to realize is that you would need to be able to pay it off before the next due date in full so as not to accrue interest. That gives you at most with good timing 45 days.
As he was quoted saying "This was the debacle point of it". A fiasco it was indeed. The article goes on to say that he opened three balance transfer cards to pay off the original card with. With the exception of one card that has a 0.00% intro balance transfer fee, every balance transfer card charges at least a 2% fee which multiplied by $45,000 is $900.
Simple math tells you that $675 worth of points - $900 in fees = a $225 deficit. This all shows that he paid $225 cash for the privilege of getting those points. Also, he now had less time to pay off his $45,000 minivan as compared to a 0.00% loan from the dealership.
A better bet would be to actually buy a car you can afford to pay for in cash. That's what the #CashCar is all about. Be sure to subscribe to hear future updates about the Cash Car and Cash Car 2.0.
How did you purchase your last car? Tell me in the comments below:
No comments:
Post a Comment
Thank you!