After all, the idea of racking up enough points for your next holiday just by buying a car? Tempting. And we can’t deny, sipping a cocktail you technically earned via your car’s alloy wheels does have a certain appeal.
But is it really that simple? Well, yes and no. While it’s technically possible to buy a car using a credit card, it comes with some pretty big caveats. In fact, many buyers find that traditional car finance offers more flexibility, structure and long-term savings than sticking it on plastic.
Here’s everything you need to know about buying a car on a credit card in 2025, plus why car finance might be a better fit for most drivers.
Can you really buy a car with a credit card in the UK?
Short answer – yes.
Long answer – not always…
Plenty of UK car buyers ask this question, especially when tempted by a 0% interest deal or a shiny new rewards card with bucketloads of points. And while using a credit card to pay for a car is possible, there are some fairly strict conditions attached.
So, when does it work?
The answer to can you pay for a car on credit card depends on three key things:
The seller
Not all dealerships accept credit cards, especially for full payment. Some allow it for deposits only. Private sellers rarely accept cards at all.
The amount
Larger purchases may exceed your credit limit. Some dealers may cap how much you can pay via card, such as £500 or £1,000.
Your card provider and limit
A credit limit of £10,000+ isn’t guaranteed, even if your income is healthy. And if you do have a high limit, you’ll need to manage your utilisation carefully.
In most cases, credit cards are accepted for deposits only, rather than the full amount. But this can still be useful if you want to buy a car with a credit card, as you’ll see in the next section.
Why pay for a car using a credit card?
Despite the hurdles, there are a few reasons some buyers still consider using a credit card. Either for the full amount (when allowed) or just the deposit. Here’s where it can work in your favour:
Section 75 Protection
If you use your credit card to pay for even part of a purchase costing between £100 and £30,000, you may be protected under Section 75 of the Consumer Credit Act. That means if something goes wrong (say the dealership goes bust before delivering the car), your card provider is equally liable.
Cashback, points or rewards
Some cards offer cashback or reward points on purchases. For big spends like a car, this could add up quickly. Assuming you pay it off in full before interest kicks in.
0% interest introductory offers
Many credit cards offer an introductory 0% interest period on purchases (sometimes up to 18–24 months). This can make short-term borrowing free, if you’re confident you can repay the balance in time. Of course, most borrowers let their debt sit for a while, which means interest can catch up when you buy a car on credit card.
Flexible repayments
Unlike car finance (which comes with fixed monthly repayments), credit card spending is more flexible. You can overpay one month, underpay the next. Although as convenient as it sounds, this can be a double-edged sword (see next section).
What are the downsides of buying a car on a credit card?
For all its perks, using a credit card to buy a car can backfire. Especially if you’re not careful with repayments.
High interest rates
Unless you clear the balance before your 0% offer ends, credit cards typically charge 19-25% APR or more. This is far higher than most car finance deals. So that “cheap” car could end up costing much more over time.
Not always accepted
Many dealerships either don’t accept credit cards or impose limits on how much you can put on one. If they do accept it, there may be a surcharge (typically 1-3%) that eats into any cashback or rewards.
Credit limit constraints
Most people don’t have a high enough credit limit to cover an entire car purchase, especially for newer models. You also risk hurting your credit score if your balance-to-limit ratio (credit utilisation) shoots up. Limits are why most Brits don’t opt to buy a car with a credit card.
No structured repayment plan
Flexibility is great in theory, but it can lead to poor financial habits. Without a set repayment plan, it’s easier to fall behind or carry a balance for longer than you intended.
Potential credit score impact
Large purchases can reduce your available credit, increase your utilisation ratio and raise red flags for future lenders. Maxing out your credit card now might seem like a good idea, but it could affect your eligibility if you apply for car finance or a mortgage later on.
What if a dealer won’t accept a credit card?
In reality, most main dealers won’t allow full payment by credit card. And even if they do, they may tack on extra fees that will offset any potential benefits. Some will allow a small portion of the payment (like a £500 or £1,000 deposit) to be paid via card, and the rest by bank transfer, loan or finance.
So what can you do?
- Always check with the dealership before committing – Don’t assume you can use your card. Confirm their policy first.
- Use your card for the deposit only – So long as the payment is over £100, you’ll still unlock Section 75 protection without needing to charge the full amount.
- Split the payment – In some cases, you might use part credit card, part car finance. This gives you the best of both worlds.
- Ask about alternative payment methods – Some dealers might accept debit cards, bank transfer or finance arranged through a third party like My Car Credit.
Things to consider before buying a car with a credit card
It’s tempting to reach for the plastic, especially when there’s a shiny 0% offer on the table or a huge points bonus. But before you buy a car with a credit card, ask yourself the following:
Can you repay the balance before interest kicks in?
If not, it could cost far more than you bargained for.
Will the dealership charge a fee?
Even a 2% surcharge on a £15,000 car is £300. In other words – more than most reward schemes will give you back. Be sure to crunch your numbers carefully before you get won over by a supposed deal.
Is your credit limit high enough?
And if it is, can you still afford to keep your utilisation low (ideally under 30%)?
Will a large credit card balance impact future borrowing?
Big spending now could hurt your chances of a good mortgage or loan later. If you’re planning to make an even bigger purchase down the line, it could be worth protecting your credit score now so you can benefit later.
In fact, alternative options like car finance (especially those with structured, on-time repayments) can actually help build your credit score over time and show lenders you’re a reliable borrower.
Is there a cheaper, more manageable alternative?
Finance deals often come with better rates and clearer payment plans.
Alternative ways to buy a car in 2025
Choosing to buy a car with a credit card can work in very specific circumstances. The reality? Most UK drivers will benefit more from a structured finance option. And even better, most UK drivers are eligible. Yes, even those with poor credit.
These give you clarity, predictability and often better value, especially over the long term.
Hire purchase (HP)
Pay a deposit, then monthly instalments. Once all payments are made, you own the car outright. It’s simple, transparent and ideal if you want full ownership at the end.
Personal contract purchase (PCP)
Typically comes with lower monthly payments than HP. You have the option to buy the car at the end (by paying a final “balloon” payment), return it or trade it in.
Personal loans
If you prefer to own the car from day one and don’t want to go through a dealership finance plan, a personal loan could be a good option. Note: your chances are better with strong personal credit.
All of these alternatives offer clearer repayment terms, more competitive interest rates and usually less stress than relying on your credit card.
Want to know where you stand when it comes to finance? With My Car Credit, you can compare your options easily and check your eligibility using our soft search tool, with absolutely no impact on your credit score.
Worried about your credit score? Don’t be. Chances are, we can help. We work with a wide network of lenders to find matches for applicants with all types of credit scores, from squeaky clean to less-than-perfect.
Should I buy a car on a credit card or use finance instead?
Still tossing up between credit card vs finance. Let’s recap the key pros and cons:
When credit cards might work:
- You have a 0% interest offer and can repay quickly
- You’re paying a small deposit to unlock Section 75 protection
- You want to earn rewards (and the maths still adds up after any fees)
- You have a high credit limit and are confident managing large balances
When car finance is the better option:
- You need to spread the cost over time without risking high interest
- You want predictable monthly payments
- You’re buying a more expensive car and need a larger credit facility
- You’d rather have a structured repayment plan that fits your budget
- You want help from a provider that specialises in car finance
Get car finance that works for you
Choosing to buy a car with a credit card can work in some cases, but it’s rarely the most efficient or affordable route. At My Car Credit, we help you explore car finance options that are tailored to your needs, whether you’ve got excellent credit or you’ve hit a few bumps along the way.
You can use our car finance calculator to get a rough idea of your monthly payments, or check your eligibility with no impact on your credit score thanks to our soft search tool.
- Easy online process
- Flexible deals for all credit types
- Used and new car finance available
- Supportive team to guide you every step of the way
So… can you pay for a car on credit card in the UK? Yes, sometimes. But just because you can doesn’t always mean you should. Between card limits, surcharges and sky-high interest rates, there are plenty of reasons to consider dedicated car finance instead.
At My Car Credit, we’re here to help you make the smartest decision for your situation. No pressure, no jargon and no confusing terms. Just honest advice and car finance that fits your lifestyle.
Apply today and let’s get you behind the wheel.
