personal line of credit

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crazymike

Guest
I just got approved for a $30,000 personal line of credit which says I can use this to purchase a car. Anyone ever done this?

What are the drawbacks over other loans, like through a dealer?

Any info would be great, thanks!
 

thrawn

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Oct 13, 2004
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some of the advantages i see: your monthly payment will probably be less than a standard car payment. if you dont use the entire thirty grand, you have that money available. as you pay it off, you will have money available if you need it.

a downside: since youre only required to make a minimum payment, the temptation will be there to only make minmum payments

i am too buzzed to think of many other +/-'s right now. is the interest rate fixed?
 
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crazymike

Guest
I don't think the interest rate is fixed which is a downside, but right now it's at 4.5%
 
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Talkie

Guest
Hmm .. those interest rates are gonna skyrocket soon ... be careful.

If It was me buying a car again Id buy something 2 years old and save 10 grand. If your interest rate gets too high youll have to make big payments just to break even !
 
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crazymike

Guest
Talkie said:
Hmm .. those interest rates are gonna skyrocket soon ... be careful.

If It was me buying a car again Id buy something 2 years old and save 10 grand. If your interest rate gets too high youll have to make big payments just to break even !

I'm buying 2 years old to save about 10 grand. But I can't afford to pay cash for any vehicle atm. But by using a personal line of credit I can pay more/less depending on interest rates, etc... or pay it all off at once if I choose to.