Car Leasing?
Question: The assumptions first. Drive away price – $30,000 (price of the car, taxes, >>>tags and fees). No money down, no trade-in. Interest rate on loan for the >>>whole $30K of 8%, compounded monthly.
>>My auto loan from my Credit Union is only 4.25% Rates couldn’t have >>gone up that much in 18 months since I bought it?
>They haven’t, but all his other percentages were a little high as well >so it fit. (the average 60 month new car loan is at 6.84% right now >according to bankrate.com. Credit unions tend to be below average.)
Answer: Before I was able to pay cash for my cars, I always used a home equity loan to reduce cost through tax deductible interest.
At times, the home equity loans were marginally lower than a new car loan.
My credit union currently has 6% home equity loans, 6% for new car loans and 6.3% for used cars.
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Filed under: Home Equity Loan
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