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With a home equity loan, you can deduct interest for up to $100,000 if the amount is not used to improve the property
So, as long as your car was less than $100,000 and you don't have other existing equity loans that were not used to improve your residence you could deduct the interest
You cannot deduct the interest on a car loan
So, from a tax perspective, it is advantageous to get the home equity loan.
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