: Under 2026 IRS rules, interest on a HELOC is only deductible if the funds are used to buy, build, or substantially improve the home securing the loan. Interest on funds used to buy a car is not tax-deductible . Summary: Is it worth it?
: Stretching the loan over a 20- or 30-year period can significantly reduce your monthly cash outlay compared to a 5-year car loan. heloc to buy a car
Using a to purchase a vehicle allows you to leverage your home's value to potentially secure a lower interest rate or more flexible repayment terms. However, this strategy involves significant risks that differ from traditional auto financing. How It Works : Under 2026 IRS rules, interest on a
: Once the draw period ends, you enter a repayment phase (often 10–20 years) where you pay back both principal and interest. : Stretching the loan over a 20- or
: Vehicles lose value quickly—roughly 60% over 5 years . If you use a 20-year repayment term, you will likely owe money on the car long after it has reached the end of its life.