I need a new car! Should I get a car loan or use a home equity line of credit?
From: Marshall W.
A lot of car dealers now offer 0% financing and itís tough to beat that. There are also lots of low-interest car loans with fixed rates, which means your payment will stay the same for the life of the loan. But if youíre admiring used cars or canít find an attractive car loan, itís worth looking into a home equity line of credit.
The interest on home equity loans is usually tax deductible (even if you use the money to buy a car) and the rates have been absurdly low for some time now. But the interest rate is variable, so it can change at any time and turn your fantastic deal into a big dud.
As with anything, the more knowledge you have, the more likely you are to make a smart decision. So do your homework, shop around, and trust your instincts.