6 Great Credit Cards to Earn Rewards Toward a New Car

The idea behind many credit card reward programs is to offer cardholders something exciting that they aspire to — such as relaxing on a far off beach that they reached by using travel rewards. A new car can also be in the picture.

Credit card issuers have partnered with car manufacturers to offer customers rewards toward the purchase or lease of a new car, making the possibility of driving away just as possible as flying away after redeeming credit card rewards.

Here are six of the best credit cards co-branded with car manufacturers that could help you get into a new car. Check all 6 to find a match for your favorite car.

1) General Motors credit card from Capital One

The GM card offers cardholders rewards worth 5% of their spending on the first $5,000 spent each year on their card.After that, cardholders earn unlimited 2% rewards on their purchases.

There’s no limit to the amount that cardholders can earn, and the rewards don’t expire. Rewards earned can then be redeemed toward the purchase of a new Chevrolet, Buick, GMC, or Cadillac vehicle. There is no annual fee for this card.

2) Toyota Rewards Visa

This card offers five points per dollar spent at participating Toyota dealers, and one point per dollar spent on all other purchases. Points are then worth 1 cent each toward Toyota service, parts and accessories, or the purchase or lease of your next eligible Toyota vehicle.

This card is issued by Toyota Savings Bank and it has no annual fee.

3) Lexus Pursuits Visa

Like the Toyota Rewards Visa, its Lexus division offers a similar credit card to help Lexus fans pay for service, parts and accessories, or the purchase or lease of your next eligible Lexus vehicle.

Five points per dollar spent are earned on purchases from Lexus dealerships, but this card offers an even better deal with 1.5 points per dollar spent on all other purchases.

Besides, with exciting new vehicles such as the new Lexus RC F coupe, a card like this is more in keeping with the aspirational nature of using credit card rewards toward the purchase of a new car. This card is issued by Lexus Savings Bank and it has no annual fee.

4) Chrysler MasterCard from First Bankcard

This card offers one point per dollar spent on most charges, double points from travel purchases, and triple points from qualifying purchases made at Chrysler Group Dealerships including parts, repairs and maintenance.

There is no limit to the number of points that can be used toward the purchase of a new Chrysler Group vehicle, and cardholders can also redeem their points for parts and service. Points can also be redeemed for merchandise, travel, gift cards or cash back. There is no annual fee for this card.

5) Mercedes-Benz credit cards from American Express

There are two versions of this card from American Express. The standard Mercedes-Benz credit card features a $500 certificate each for calendar year that cardholders charge $5,000 in purchases. It also offers leaseholders 1,000 excess miles waived at lease end and a $50 certificate each year upon account renewal.

Instead of receiving rewards toward the purchase of a new vehicle, card members receive points in the American Express Membership Rewards program. Cardholders earn 5x rewards for Mercedes-Benz purchases, 3x at U.S. gas stations, double points at restaurants and one point per dollar on all other transactions.

New cardholders also receive a 10,000 point sign-up bonus  when they use their card to charge $1,000 in purchases within the first three months of card membership. There is an annual fee of $95.

With the Mercedes-Benz Platinum card, new cardholders earn 50,000 Membership Rewards points after spending $3,000 within their first three months of card membership. Card members can also earn a $1,000 certificate each year that they make $5,000 in purchases.

This card comes with the full slate of travel benefits including elite status in hotel and car rental programs, and access to airport business lounges. Cardholders also enjoy the many travel insurance and purchase protection policies offered to all Platinum cardholders. There is an annual fee of $475 for this card.

6) BMW credit card

BMW offers three credit cards: the standard BMW Card, their BMW Signature Card, and the BMW Ultimate Card.

The standard BMW Card offers one point per dollar spent on all purchases, and three points per dollar spent at BMW centers. The BMW Signature card offers one point per dollar spent on all purchases, double points for gas, and four points per dollar spent at BMW centers.

Their BMW Ultimate Card is offered only by invitation. Cardholders earn one BMW Reward point for each dollar spent on most purchases, three points per dollar spent on gas, and five points for every dollar spent at BMW centers.

Points can be redeemed for BMW Rewards including lease and financing credits. There is no annual fee for the standard and Signature card,  but an annual fee of $75 for the Ultimate card.

Which is best for a new car

The GM card is a strong contender, if only because it offers 5% rewards on cardholders’ first $5,000 spent each year, and 2% rewards after that.

Close behind is the Lexus card that offers 1.5% rewards. The Toyota card is a tough sell at only 1% rewards, but it could still offer significant savings should one use the card to purchase part of their new car, and earn 5% cash back.

The BMW cards also offer an uncompetitive one point per dollar spent, while the Mercedes-Benz cards are really more of a travel rewards product with some automotive benefits than as a way to buy a new car.

Automotive reward credit cards are all about leveraging your good credit to put you in the driver’s seat of the new car you want. By choosing the best card for your needs you can feel closer to your next new car purchase every time you swipe it.