Surely A Large Human
Date registered: Jun 2006
Vehicle: '08 C219
Location: Between Earth and Mars
Mentioned: 2 Post(s)
Quoted: 482 Post(s)
As much as I hate to agree with Jayhawk, well, I won't.
What I will say is this...if you have a relationship with a bank, you're generally able to talk to them about getting pre-approval for an auto purchase. They'll tell you what the rate will be, and how much they'll lend. You can take that to any dealer or private party (unless something has changed very recently, which it might have if my recent experience with rental property financing is any guide).
If a dealership has a relationship with a particular pair of lenders, they may be able to offer you a better deal. Take it or leave it.
If you have the equity, I for one don't see any problem with using it to finance a car - if you can afford the payments over a 60 month term. In other words, don't buy a Bentley if they only way you can afford it is amortized over 30 years. The interest on that loan is tax deductible, meaning you get a 28% - 40+% discount on the money (depending on your income bracket). Plus, if the shit hits the fan, you can revert to the minimum monthly payment. Far cheaper way to finance a car.
Creditworthy people will have no problems buying cars. People who aren't creditworthy are the LAST ONES who should be buying on credit. They should save their pennies and pay cash, period. Truth be told, we all should. If, like Shane said, you can get free money, you can make an exception to the rule.