Save Money on Taxes with a Tax-Deductible Auto Loan

Date June 17, 2009

financial literacyIf you’re like me, when it’s time to do your taxes you are searching for any possible deductions allowed by law. Handing our hard-earned money over to the IRS is not something any of us is really fond of doing. MCCU may have a solution for you.

Do you have an auto loan? Are you thinking about buying a new car and financing it? Okay…here’s the fun part. Did you know that if you own a home, you may be eligible for a tax-deductible auto loan, and you may be able to deduct the interest you pay on that car loan?

If you’re a homeowner, your equity can be a source of low-cost funds for buying a new or used car… usually with a tax deduction (check with your tax advisor!). Matadors Community Credit Union’s Tax-Deductible Auto Equity Loan offers these benefits:

  • No appraisal or title search fees and no prepayment penalties. The tax-deductible Auto Loan places a courtesy lien on your home as collateral, but without the usual requirements.
  • Fast access to funds. Immediately upon loan approval, a standard MCCU auto loan is set up for you, and a courtesy equity lien is added a few days later.
  • Low, fixed interest rates. Enjoy the same affordable rates and convenient financing terms offered by regular MCCU auto loans. Finance any new or used car, or refinance higher-rate auto loans from other lenders.
  • More buying power. By using the equity in your home as collateral, you may be able to afford a higher-cost vehicle than with conventional auto financing… and you can arrange pre-approval to help you bargain for a better deal!
  • Potential tax benefits. The interest payments on home equity loans, including those used for vehicle financing, generally are tax-deductible!

Sound interesting? It should! Contact MCCU today to see if you are eligible for the Auto Equity Loan! Trust me, you’ll be very pleased when you get your interest statement at the end of the year, telling you how much you can deduct! Auto Equity Loan=More money in your pocket, not the Government’s!

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

Category Posted in Loans

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