CNBC hired a points expert. His name is Jason Stauffer. His job is telling you whether you can buy a car with a credit card.
You cannot buy a car with a credit card. Dealerships cap transactions at five grand because Visa charges them three percent and they'd rather light money on fire than pay processing fees. This took Jason thirty seconds to explain. CNBC gave him a segment anyway.
The target audience for this advice is someone with enough credit limit to buy a car but not enough sense to call the dealership first. That person does not exist. If you have a forty-thousand-dollar credit limit, you already know how credit cards work. If you don't know how credit cards work, you're financing a Nissan Altima at 23% APR and the points conversation is academic.
But let's say you find the one dealer in America who'll let you swipe for the full amount. Congratulations. You just earned 1,200 airline miles on a $30,000 purchase. That's enough for a one-way flight to Cleveland in eleven months if you book on a Tuesday. Meanwhile you're paying 18% interest because you definitely didn't have thirty grand liquid or you wouldn't be asking Jason Stauffer for advice.
The real tragedy is Jason probably spent years optimizing his credit card strategy. Spreadsheets. Browser extensions. He knows which Amex cards have foreign transaction fees. He books flights sixteen months in advance to maximize point transfers between airline partners. Then CNBC calls and asks him to explain whether cars accept plastic and he says yes because he needs the media exposure for his consulting business.
This is what happens when financial media runs out of things to say. They interview a guy whose expertise is reading terms and conditions slightly faster than you.
Next week Jason explains whether you can use a Discover card at Wendy's. Spoiler: you can, but they'll judge you for it.
Photo by on Unsplash
Leave a Comment