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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My parents own their house outright and have for ~15 years. They have an HEL with their local bank and have always used it for cars (they buy used) rather than taking out car loans. I don't see a problem with it. Make sure you get a good rate. [/quote]

This isn't very smart. They have made their house collateral for a car loan. Silly silly. [/quote]

But they don't have a mortgage payment and could easily make the monthly payments. They have done this for two sets of cars over 15 years and have never had a problem. Their most recent cars are paid off and they don't actually utilize the line of equity currently. Why is it not smart? [/quote]

Depends how much they are saving, if any, by using the HELOC versus getting a loan. Our HELOC has a higher rate than an auto loan, but the HELOC is deductible.

Also depends how close they are to retirement and how their health is. To have a loss of income due to retirement or a health crisis and then have to pay the HELOC or lose the house would not be good.[/quote]

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