Credit Cards

Credit card for car deposit - Best Welcome bonus or Points or Cashback

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  • Dec 8th, 2022 5:45 pm
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[OP]
Jr. Member
Nov 29, 2009
151 posts
13 upvotes

Credit card for car deposit - Best Welcome bonus or Points or Cashback

we will be picking up a car at the end of the month
we are allowed to use our credit card for partial payment

- we are planning pay as much as 5K w/the credit card
- which credit card can I apply for today to maximize the 5K I'm paying at the dealer?

- I prefer cashback
- but don't minds points for future travel / car rent
3 replies
Sr. Member
Dec 22, 2004
568 posts
702 upvotes
Toronto
chris_j11 wrote: we will be picking up a car at the end of the month
we are allowed to use our credit card for partial payment

- we are planning pay as much as 5K w/the credit card
- which credit card can I apply for today to maximize the 5K I'm paying at the dealer?

- I prefer cashback
- but don't minds points for future travel / car rent
For my last car, I used td aeroplan VIP. I find it a great card for “everything else” purchases.
Jr. Member
Jan 25, 2017
143 posts
146 upvotes
I understand that you prefer cash back but to be totally honest with you cash back would get you the lowest return in this situation.

Seems to be an industry standard for the last 5 years or so for premium cash back credit cards in Canada to have a welcome offer of First year free (FYF) and 10% cash back on all purchases for the first $2,000 in spending within the first 3 months. If the dealer is letting you put $5,000 on the card you would get ($2,000*10%=$200) + ($3,000*1%=$30) for a total of $230

Compare that to say the current offer for the TD First Class Travel Visa Infinite Card where you will get FYF and spending $5,000 within 180 days of account opening will get you a sign up bonus of 135,000 points plus the regular points ($5,000 x 2 points per dollar spent = 10,000 points) for a grand total of 145,000 TD rewards points which is worth $725 of travel bookable through Expedia for TD. Not to mention you get an annual travel credit of $100 for a lodging booking of $500 or more on Expedia for TD plus if you intend to keep the card long term you will get a 10% birthday bonus of up to 10,000 points which is another $50.

Or also from TD is the TD Aeroplan Visa Infinite Card where you will get FYF and 50,000 bonus Aeroplan points when you spend $7,500 in the 1st year. So you would have to put your car down payment on the card and then another $2,500 to get the full bonus. 50,000 Aeroplan points are worth $1,000 or more!

Or you could get the Scotia Gold Amex. Current offer is FYF and 45,000 Scene+ points when you spend $7,500 within the first year so again would take more than your car down payment to rigger the full bonus but is totally worth it. The bonus points are worth $450 and then you would get the regular 5,000 points worth $50 for spending $5,000 on the car down payment. So there is $500 towards groceries at Sobeys

There are many more other options out there it would take me hours to list them all lol!

But so as you can see of the three examples I wrote about above, even the smallest travel points bonus + the regular earn rate on your down payment will get you $500 which is more than double the cash back return of $230.
[OP]
Jr. Member
Nov 29, 2009
151 posts
13 upvotes
I was looking at other credit cards, but what happens to my points if I cancel the credit card before the 2nd Yr when I have to pay for the card's annual fee of $139?

I assumed if I do get this card, and decided to cancel it before the end of the 1st yr, there is no penalty?

called them to get answer right away:
- I have 90 days after cancelling my card to continue using points
- No penalty for cancellation before 1st yr

I hope to get the card before I get the card - thanks for the advice

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