$360.00 a Month for 72 Months, at 5.9% financing. This was back in 8/05 before any 0% financing, rebates, or Extended Warranties. So the $ 360.00 includes a 72 Month Warranty and Gap Insurance. I also still owed $2000.00 on my '99 Sonoma trade in which I'm sure is figured in there somewhere, although the dealer said it wasn't. Owe more than it's worth now, but we plan on keeping it well after it's paid for. Only has about 12,000 miles on it in almost 27 Months. (And basically trouble free so far)

 

Paid cash (used home equity line, interest, a tax deduction).

72 mo @ $360/mo = $25920, The $2000 owed on Sonoma was just added to your purchase price.

I don't trust getting financing through a dealer as there are too many shady dealers out there and have used a credit union or bank in the past.

 

I understand your hesitance to go through the dealer but I sure would not use a home as collateral for my car. Yikes. Especially if your home EQ loan is variable.

Besides if you were to get audited I believe they will likely disallow that deduction. A home equity loan can ONLY be used as a deduction when used for home improvements like a pool, new roof etc.

 

Kingfrog......

I don't know who advised you of this, BUT it is wrong.

According to IRS publication 936, Home Equity Loans can be used for almost anything (debt consolidation and investment purposes are the most common) and are deductible generally up to $100,000.

Many people have been advised to use the home equity for car loans because it is deductible (although the % may be higher). It is a personal financial choice (although, under many circumstances it should not be used).

 

zero....

 

msrp 22000.00 i think 1000 negative equity trade in, no money down, but 2500 cash back well down i guess, got gap insurance, 360.00 month 72 month

 

Thank You You are correct. One can us Home Equity for a variety of loans and receive the tax benefit. I guess those of us who have no debt thus not enough deductions are not up on the rules.

However in my opinion using one's home as collateral on a car with a variable interest rate is risky. But looking at the credit issues out there people buy into without research and then will sign anything without regard to the future consequences and of course banks will comply as they will have loans with collateral.

 

Kingfrog.....

Yep, I agree with your last paragraph. That is ONE of the reasons/concerns for my ending, ".....under many circumstances is should not be used.".

 

Well, mine had the woody kit added when I found it, and that jacked the price, but I still felt I got a good deal. Payment is $330. 72mo no interest, and they paid off my '03 Saturn Vue even money.

 

how did you pay it off cash and have payments?