GM offers me 5% earning toward my next car if I get their credit card. Anyone done this? (vehicle, versus)
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GM keeps sending me credit card offers to earn points toward a discount on my next car purchase with them.
Has anyone done this and how much did you save on a purchase doing this?
Yes, we have done this and there was a limit (I think it was $1000) but, $1000 is $1000 and, if you're going to buy a Chevy anyway - just don't tell them until you've settled on the price!
We had one from Ford / Citibank Mastercard. When it was first offered it was great. Then over the years there were more and more restrictions. Ford citi dollars earned would expire after a certain amount of time. If I remember correctly, the most we ever got off was nearly 1700 dollars. The program finally went away. As far as telling the dealer about your rebates,
check first. The Ford program we had was through the bank. You made your deal with the dealer and when done you called the bank and told them you purchased a new Ford. The bank then faxed a form to the dealer who then faxed it back. You get your check in the mail about a week later. Also: the rebate had nothing to do with the final dealer price. In other words, you didn't reduce the tax you paid buy using the rebate.
There is always fine print and catches. If the fine print is that there's a $1k max (or anything similar, which, in my experience, there always is), get yourself a rewards-earning credit card like Capital One, instead. With a Capital One card:
#1, there's no limit to the rewards you can earn (unlike the Chevy card with a $1k cap),
#2, you can use the rewards on any purchase you want (unlike the Chevy card that limits you to using the rewards on your Chevy purchase),
#3, the card will continue to have a benefit to you after you've purchased your Chevy (unlike the Chevy card), and
#4, you won't be opening a card, just to close it later when you no longer need the Chevy reward (which can affect your FICO score).
I've had the same cards for many, many years (just one factor in a FICO score) and my FICO is 820. I always steer clear of gimmick cards.
Ah, shades of the mid 90's - there were affinity cards for everyone - and everything - GM, Ford, Chrysler, Nissan, VW, you name 'em. exho is spot on, BTW - at first they had few, if any, spending restrictions - new cars, service, parts... it was all good. Of course, folks began playing the cards (using points to $ for hard to get parts, sell them on this newfangled ebay, profit$$$), so by the end they were all pretty much useless... as is the current GM card's redemption limits that range from $3K down to $500.
The limit depends on the vehicle you are buying. Smaller margin cars lize Cruzes and Sonics have smaller incentives the larger margin vehicles like Escalades.
There are cards that don't have limits, so if you hear about someone that got more then the $1000, $2000, etc that's usually offered it is true - but all those cards got handed out years ago to factory employees and the like and there aren't any new ones being issued.
As others said read the fine print. Sometimes there is a cap, somtimes there isn't. Sometimes the rewards expire and sometimes they don't. Even if you get an uncapped card where the rewards don't expire (doubt this is the case) there is usually a limit as to how much can be applied to any purchase on a car-by-car basis. As Tourian said, smaller, low margin cars are going to have lower amounts that can be used versus larger, higher margin cars.
Overall, I don't think it is worth it unless you are deadset on getting a new GM vehicle and can max out the points easily and then pay it off or switch to a more versatile card. However, that discussion is more personal finance then automotive.
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