I heard that if you have a car loan, you cannot get PLPD insurance (cheapest kind).
But I also own a home, and I have a home equity line of credit (HELOC). I could take the $8,000 out of my HELOAC i need for the car and pay with a check. Would I be able to get PLPD in this case. I know I would probably be paying a higher interest this way, but I think it would still be the cheapest way. Would this work? Is it illegal?
Car financing question?
Yes that is totally legal. The HELOC is secured by your home so your car loan would be paid off in full and your house is now securing that debt... however if you plan on doing that, make sure that you pay whatever your normal car payment is plus your normal HELOC payment on the heloc. You don't want to finance that car for 30 years do you...
Car financing question?
Just off the topic,
Why would you want to take a HELOC to finance a car. In other words, you are using your house as a collateral for a depreciating asset (car). Would you rather not let it be or use it to pay off credit cards that have a higher rate of interest.
Most car loans should be available in the 7-8% range. Check online as well as with your credit union.
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