HELOC Loans Are the Best-Kept Secrets to Auto Finance

LowerMyBills.com Advises Home Owners the Benefits of Using HELOC Loans for a Car Purchase

LOS ANGELES, March 8 -- If you own a home with Equity, there are several benefits to using a HELOC Loan for a new or used car purchase as compared with a tradition auto loan. LowerMyBills.com provides the following tips to the consumer:

   *  The initial HELOC rate will be lower than the traditional auto loan.
      The March 2, 2005 Bankrate Weekly rate roundup of large banks and
      thrifts showed the average HELOC to be 5.87% with the average 48-month
      auto loan at 7.57% and the average 36-month used car loan to be 8.37%.
      Given the March 2nd data, with a HELOC a consumer will get a rate that
      is 1.7% lower than the new car loan average and 2.5% lower than the
      used car loan average.  And even though the HELOC rate is adjustable,
      rates would have to rise significantly to match those currently being
      offered for traditional auto loans.

   *  HELOCs will likely have tax advantages.  Chances are very good that
      the interest rate charged on the HELOC will be tax deductible.
      Consult tax advisor on this.

   *  HELOCs offer more flexibility.  A HELOC can be used as a great cash
      management tool.  In addition to a car loan, other debt can be
      consolidated into one, flexible payment.  Most HELOCs have an
      interest-only payment feature that helps when money gets tight.
      Conversely, when there is extra cash HELOC payments can be
      accelerated, which in turn will reduce the minimum payment so long as
      interest rates have not changes.  And no matter how aggressively you
      pay down your HELOC debt, if an emergency arises, you can as easily
      tap back into your line of credit.

   *  A HELOC may provide some people with more confidence in the
      negotiation process.  Many have equated the purchase of a car with a
      root canal, with many preferring the root canal.  A typical car
      purchase involves several transactions including financing the car
      purchase, insuring the car, and trading in an existing car -- and
      dealers try to make as much money as possible on each of these
      transactions.  The fewer transactions a buyer makes at the dealer, the
      more manageable the situation will be for the buyer.  A buyer who uses
      a HELOC will not need dealer financing, and may not be dependent on
      the dealer taking a trade-in.  Insurance can easily be taken care of
      prior to a dealer visit in most cases.  As a buyer, having the ability
      to focus exclusively on negotiating a good price for the car you want
      will help you to get exactly that, a good deal.

   *  When a car is purchased with a HELOC, the title for the car goes to
      the buyer, not the lender.  With auto purchases, lenders may require
      the buyer to increase their comprehensive coverage to ensure that the
      lender's risk is covered, whether you agree with them or not.  What
      this does is increase the buyer's insurance cost.  When a car is
      purchased with a HELOC, the buyer decides how much comprehensive
      insurance is sufficient for them.

If you would like to find the best deals on loans, please log on to www.LowerMyBills.com where you can take advantage of all the great rates.

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LowerMyBills.com (http://www.lowermybills.com/) is the premier, free online service for consumers to compare the lowest rates on monthly bills and reduce the cost of living. LowerMyBills.com is the one-stop destination that offers savings through relationships with more than 400 service providers across 18 categories, including home loans, credit cards, long distance, auto and health insurance, and wireless services. To date, LowerMyBills.com has helped more than 500,000 consumers save over $172 million. The Santa Monica, Calif.-based Company has been featured in The Wall Street Journal, USA Today and on CNN and talk shows such as "Dr. Phil."