I worked in the Auto finance business for years, and I don't see anything wrong with using a line of credit to finance a car. It takes slightly more personal control, but just set up a monthly payment with the bank to mimic a car payment. Then you are done. I don't see why you would choose to take a higher interest rate through a fixed loan. The only one gaining from that scenario is the dealer and the bank. Dealers are actually trained to provide this advice as it works for them, not you. But the key in this is to not use the Line of Credit for other uses (ie monthly expenses, etc.).
As for cars, I would personally take a 2-3 year older Civic instead of a newer Micra. Civics run forever and should be a more comfortable car.
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