Even still, if the rate is lower and no fear of default, hard to see an issue - esp. if you expect that the market generates returns in excess of interest charged.

You cannot write off the interest paid on your taxes unless the HELOC was used for the house.

Anonymous wrote:You’re using your home as collateral for a depreciating asset. Don’t do that. Just pay cash or take out an auto loan.

But what if I can pay off my home in cash/invested assets (outside of retirement accounts)? This is just a pure financial decision.

Anonymous wrote:

Anonymous wrote:You’re using your home as collateral for a depreciating asset. Don’t do that. Just pay cash or take out an auto loan.

Eh, not much different than home renovations that return 50c on the $1 and also depreciate quickly.

Sure banker, sure.

Anonymous wrote:You’re using your home as collateral for a depreciating asset. Don’t do that. Just pay cash or take out an auto loan.

Eh, not much different than home renovations that return 50c on the $1 and also depreciate quickly.

You’re using your home as collateral for a depreciating asset. Don’t do that. Just pay cash or take out an auto loan.

I can easily pay cash for a new car, but would rather finance given low interest rates available. I have an untapped HELOC that has a lower interest rate than I could get through a car loan.

Is there any reason not to use the HELOC for a car purchase?