An Introduction to Auto Credit Cards

Looking for ways to cut down your auto-related expenses? Using an auto credit card may be one way to do it. In recent years, many of the major auto manufactures have teamed up with credit card companies to introduce co-branded credit cards. When you use one of these auto credit cards, you can earn rewards toward the purchase or lease of a vehicle or other automotive products.

What's in it for you?
Each auto credit card is a little bit different and the reward programs of each also differ from each other. With some cards, you earn rewards points towards a new vehicle from a particular manufacturer. Other auto credit cards let you use your rewards points with any manufacturer. If you haven't yet decided which manufacture to buy from, this type of card will give you the flexibility to shop around. There are also auto credit cards that don't offer rewards points towards vehicle purchases, but instead let you put those rewards towards the cost of car parts, services or even accessories.

Since auto credit cards have gained so much popularity with consumers, almost every major manufacture now offers one type or another. Whether you're looking for an affordable family car from GM or Volkswagen or a luxury model from BMW or Audi, there's a card for you. If you're hoping to find an auto credit card that will help you save up for that Mercedes you've had your eye on, though, you may want to consider another manufacturer. To enhance the feeling of exclusivity attached to driving one of their cars, Mercedes limits enrollment in their auto credit card program to people who already own a Mercedes.

Beware of the fine print
Before you sign up for an auto credit card, keep in mind that there aren't currently any cards that will let you cover the whole cost of a vehicle with rewards points alone. The rewards points will usually get you a discount of between $1000 and $5000.