Larry wants to purchase a new car for personal use. He anticipates financing $40,000 of the purchase

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Larry wants to purchase a new car for personal use. He anticipates financing

$40,000 of the purchase price.The car dealer is offering a special 3.5 percent interest rate on new cars. Alternatively, Larry could use a home equity loan with an interest rate of 5 percent. Larry is in the 35 percent marginal tax bracket. Should Larry finance the car through the dealer or through a home equity loan?

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Taxation For Decision Makers 2008

ISBN: 9780324654110

2nd Edition

Authors: Shirley Dennis-Escoffier, Karen A. Fortin

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