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A HELOC can lead you to the purchase of a new car

HELOC can propel homeowners into car buying

Posted on 10/21/13 9:11:00 AM

With the Toyota Camry and the Honda Accord, Japanese automakers have the midsize, consumer-friendly sedan market on lockdown.

But the premier German luxury automakers - Audi, BMW and Mercedes-Benz - are targeting a different sort of market. Those three automakers have seen sales rise thanks to an increased output of smaller cars.

"The luxury carmakers have invaded the compact and small-car segment, and many customers are willing to pay a little more to buy a luxury car," Peter Fuss, a partner at Ernst & Young in Frankfurt, told The Detroit News.

While the European market recently had a six-year decline in auto sales, the market shares for Audi, BMW and Mercedes all surged during that span. Audi's market share went from 4.2 to 5.7 percent, BMW notched an increase from 4.2 to 5.1 percent and Mercedes went from 4.5 to five percent.

Meanwhile, PSA Peugeot Citroen, General Motors Co. and Ford Motor Co. each saw their brand's market share dip more than two percentage points during that time.

The Detroit News states that much of the rally has to do with an increased product line of smaller cars consumers want to drive.

Audi, for example, has doubled its lineup to 46 vehicles in the last six years. In August, its compact A3 model was the sixth-best selling model in Europe. In the United States, Audi's sales rate was up 21.5 percent year-over-year at the end of the 2013 summer buying season, according to Motor Authority.

Americans who are interested in buying a luxury brand car but don't quite have the means to pursue such a vehicle should consider a home equity line of credit. Qualified borrowers put down their home as collateral for a home equity line of credit, which is an open line similar to a credit card. Homeowners typically take out such a credit line for major purchases like a car, home renovations or student loan repayment.

Economy is improving and car sales are up
You know the nation's economy is improving when Motor Authority considers a nine percent increase in sales from Acura as one of the "weaker performances" of the year.

Also in that category were Infiniti and Chrysler, which were up 6.5 and two percent, respectively.

Volvo was one of the only major brands to show a decrease in sales figures in August 2013. Sales for the Swedish carmaker dropped 5.7 percent compared to August 2012.