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SunTrust is a financing company which offers auto loans, in addition to several other financial products. With SunTrust, borrowers have the option of either obtaining one of the several traditional SunTrust auto loans, or of instead obtaining a home equity loan for the purchase of a vehicle. Since interest rates for home equity loans are usually lower than vehicle loans, many consumers are attracted to the idea of using a home equity loan to purchase their next vehicle. Add to this that the interest paid on a home equity loan can be tax deductible, whereas the interest paid on a regular car loan cannot, and many consumers are quite attracted to the idea of using a home equity loan to buy a car. Keep in mind, however, that buying a car with a home equity loan puts your home at risk if you are unable to make the payments. Defaulting on a traditional auto loan will result in the car being repossessed, but defaulting on a home equity loan can result in foreclosure.
|Jennifer Mathes, Ph.D.|