The use of home equity loans to buy new cars is on the rise again, though not nearly to pre-recession levels, according to Bandon, Ore.-based CNW Research’s Art Spinella. He discussed this shift in the March 2012 Issue of CNW’s Retail Auto Summary, saying the increase in this form of financing is especially true among long-time homeowners with available equity.
To put this in context, Spinella writes that in 2007, consumers financed 11.8 percent of all new-car acquisitions with home equity loans. Even though the industry saw a huge drop in the number of consumers using this form of financing, down to a low of 4.4 percent in 2010, Spinella said he expects this number to hit a national average of 5 percent sometime this year, based on the first two months of 2012.
via F&I Magazine.