Why a Home Equity Loan is Smart Automobile Financing

You've been dreaming of the new car or truck for a long time. If you are looking for a smart way to finance your new automobile, a home equity loan could be the way to go. You can expect five great benefits:

1. Low Rate

Using a home equity loan instead of a car loan direct from the dealer or a Credit Union can result in a lower cost of financing. Even when car dealerships advertise rates at 0.00%, it usually only applies to the vehicles they want to unload. You can start with a low, fixed-rate home equity loan that is based on the equity of your home and credit rating.

2. Your Choice of Repayment Terms

Many car loans generally have a 60- or 72-month repayment plan—and considering the price of a new car can translate into large monthly payments. With a home equity loan, you can choose a longer term that suits your budget. That means lower monthly payments to start.

3. Stress-Free Shopping

Imagine arriving at the car dealership and shopping at your leisure. Once you close your home equity loan, you know exactly what kind of car you can afford—no more stress or worrying that your auto loan won't cover the extra options that you want.

4. Negotiating Power

A home equity loan gives you the power to shop for the best price with cash in hand. Instead of haggling with the dealer, expect the red carpet treatment. Simply walk in, pick the car you want, add the options you'd like, and negotiate with cash in hand.

5. Potential Tax Saving

With home equity loans, you may also be able to deduct the mortgage interest expenses on your taxes and reduce your borrowing cost further. You won't get that similar tax benefit if you finance your auto purchase with another loan. Consult your tax advisor for information.

Start with an approved home equity line of credit account. An Allpointe Mortgage Advisor can help you begin today. Just call 866-255-3535.