Comments on: How To Avoid Being Upside Down On A Car Loan http://www.moneycrashers.com/how-to-avoid-being-upside-down-on-a-car-loan/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-avoid-being-upside-down-on-a-car-loan personal finance blog Sat, 21 Nov 2009 04:07:50 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Dustin http://www.moneycrashers.com/how-to-avoid-being-upside-down-on-a-car-loan/comment-page-1/#comment-6916 Dustin Thu, 15 Oct 2009 18:54:15 +0000 http://www.moneycrashers.com/how-to-avoid-being-upside-down-on-a-car-loan/#comment-6916 Interesting ideas. If your objective is to avoid being stuck upside down on a car loan, why not just lease a car? Drive it within the stated mileage requirements and return it for a new car after 3 years. Or if you're one who wants to buy a new car and drive it to its death, dump the money you would have used to buy the car into a whole life policy to build cash value, then immediately borrow it out to buy the car outright. That way you would have multiples of the money you put in as death benefit, you're borrowing from yourself at a marginal rate, and if you don't pay it back the money is just taken off your death benefit when you die (at which time you obviously don't need it). Technically, this is how you should be financing all big purchases in life. Just a few thoughts. Interesting ideas. If your objective is to avoid being stuck upside down on a car loan, why not just lease a car? Drive it within the stated mileage requirements and return it for a new car after 3 years. Or if you’re one who wants to buy a new car and drive it to its death, dump the money you would have used to buy the car into a whole life policy to build cash value, then immediately borrow it out to buy the car outright. That way you would have multiples of the money you put in as death benefit, you’re borrowing from yourself at a marginal rate, and if you don’t pay it back the money is just taken off your death benefit when you die (at which time you obviously don’t need it). Technically, this is how you should be financing all big purchases in life. Just a few thoughts.

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