[DML] Re: Using Home Equity To Buy A DeLorean

["content22207" <brobertson@xxxx>]

Every car I own is at least 20 years old. They ARE my daily
transportation.

And remember: this thread started with "Scooby's" desire to purchase a
DeLorean, not a 2004 year model from the Big 3. 

The portion of home equity represented by appreciation is the easiest
asset a person will ever accumulate. But if all he or she does is wait
for the gain on a future sale, it is a very lazy asset. It is not
working one bit in the interim.

Faced with the choice between a high interest, non tax deductible,
short term loan secured by my DeLorean itself or a low interest, tax
deductible, indefinite term loan secured by a very small portion of my
home equity, of course I chose the latter. It would have been silly
not to. And financially counter productive. My net interest rate is
3%. I can pay for the car as quickly, or as slowly (30 year term), as
I want. And considering nothing more than my home's appreciation --
the DeLo is secured by a mere fraction of even that.

Bill Robertson
#5939

>--- In dmcnews@xxxxxxxxxxxxxxx, "Jack Stiefel" <jack@xxxx> wrote:
> That's assuming you don't mind getting your house in debt. Not having a
> mortgage, I would never -NEVER- use my house to buy a car. It is
one of the
> few things that once you own outright, it is yours and not the banks.
> 
> If I had to borrow money for a car it would not be a 20+ year old
one with
> interest to boot. I would go to my local big 3