Quote:
Originally Posted by BMWrules7
Yes, the home equity money is damn near interest free. So, why not?
It all makes perfect sense. And you can pay off the entire HE loan in advance.
But, the thought of wrapping a guilty asset like a luxury car into your house makes me throw up in my mouth a little.
It must be my generation. I am 45.
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I'm 48. I think what I had proposed would depend on one's personal financial situation. I do agree that in general it's not wise to tie a luxury car into your house, BUT in essence a HELOC is just like a car loan - you still have to pay it off (except that you get a tax advantage). If there is any concern about defaulting, then you have no business buying a luxury car. It's just basic economics.
In regards to paying cash, what I did for my last 3 or 4 (can't quite remember - I am already 48) of my cars is that I used the HELOC as a "bridge loan." I then paid the loan off within a couple of months. What I didn't want to do was to liquidate any assets to pay off a car.