Best deal around, if you are planning to buy a GM, Subaru, or Mercedes Benz vehicle.
The GM credit card and Subaru credit card offer 3% rewards on everything you buy, terms that no other card can beat.
As of August 2011, there are also 2 new Mercedes Benz cards that get you $500 or $1,000 off fo a new Mercedes lease or purchase. See American Express website’s for details (the $500 credit version, and the rebranded Platinum version).
Mercedes Credit Cards, which also works with Smart Car Purchases
The Mercedes Benz Credit Card from American Express has a $95 annual fee, but with that you get a $50 annual reward certificate towards MB accessories, 5,000 Amex Points after you your first purchase, 1,000 miles waived at lease end, and $500 the future lease or purchase of a new Mercedes.
The “Platinum Card® from American Express Exclusively for Mercedes-Benz” has all the benefits of the American Express Platinum card, but costs a bit more ($475 vs $450 for the normal Platinum Card).
You also get the benefits of the normal Platinum Card, such as airport lounge access. In addition, you get 50,000 Amex Points after you spend $1,000, 2,000 extra miles on your lease, and $1,000 towards a new Mercedes purchase or lease
Both cards give you 5x Amex Points on Mercedes purchases, but the non-platinum version also gets you 3x points on gas and 2x points on restaurants.
GM and Subaru Cards
There are some limitations to keep in mind. GM’s 3% rewards can only be redeemed for eligible new vehicle purchases, and redemption is limited at $1,000-$3,000 per vehicle. Subaru rewards can be used for parts & repairs as well, but max out at $500 per year.
We are confident that if you plan to buy a GM or Subaru, or already own a Subaru, there are no better cards out there. Why are we so sure? Because GM and Subaru are actually losing money by paying you 3% rewards.
How can GM and Subaru pay you 3%?
Certain credit card issuers don’t have to play by the rules when it comes to doling out rewards. The luckiest credit card issuers (Discover and American Express) make on average less than 2.5% on every dollar you spend in “interchange fees”, every time you swipe your card. Therefore, there is a ceiling to what a normal credit card company is willing to kick back to the consumer.
However, automotive purchases are such huge sales, with such important customer loyalty value, that some companies are happy to take a potential loss on rewards to keep your business.
Automotive Credit Cards with Rewards better than 1%
- GM Flexible Earnings – 3% – only applicable to new vehicles, otherwise you get 1% cash back
- Subaru – 3% – but limited to $500 per year
- Lexus Pursuits – 1.5%
- Mini Platinum – 1% – but with 2% on gas, car washes, and tolls
- Mercedes Benz
Automotive Credit Cards with Rewards equal to 1% (yawn, get a different type of card)
Automotive Credit Cards with Rewards less than 1% (really?)
- BMW Rewards – 0.5%
Discontinued Automobile Credit Cards
Numerous automotive credit cards programs have been discontinued since the financial crisis. We’ll keep an eye out for you in case they rise from the dead.
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