Why not? I have a home equity loan for one of my cars. 4.6% just the other day and deductible so my effective rate is a little over 3.25%? How is that a bad deal?

 

Your home is the most important purchase you will probably ever make...tying it to a depreciating asset like a car is not a good idea.

 

^ I agree. Buy a car you can afford readily, don't tie up a house to afford a depriciating asset. Not smart money management.

 

question: but if he is going to pay the loan back, then he would be getting a lower rate and the interest is tax deductable.

if he needs a loan, then shouldn't that be the best way to go?

 

I think that is the point...does he NEED a 98 Jaguar that may be a stretch financially and is known to be problematic. Why would you risk putting your house on the line for a depreciating asset...it just doesn't make any sense.

 

Yeah he passed on the car, but thank you for the suggestions.