Using your home equity to buy a new car
What are the benefits?
Buy the car you want without reducing your savings
Flexible access to funds when it suits you
No monthly repayments
Improve comfort, safety and lifestyle
Keep living where you love while enjoying greater mobility
Meet Diana
Diana (67) from Sydney NSW had always lived a full and active life as a teacher. As she approached retirement, she made the decision to slow down, stepping away from full-time work to take on a part-time role with a charity she truly cared about.
While the change brought her a strong sense of purpose and balance, it also meant a reduced income. Diana still had a small existing mortgage, and without her previous salary, keeping up with the monthly repayments began to feel increasingly difficult.
At the same time, she had a clear vision for this next stage of life – purchasing her dream car, completing a few minor renovations around the home, and setting aside funds to travel and enjoy more freedom.
How Inviva helped Diana
After seeking advice, Diana explored releasing equity from her home through Inviva. By accessing the value she had built up over many years, Diana was able to pay out her existing mortgage and remove the pressure of ongoing repayments. From there, she used part of the funds to purchase her dream car, a second hand SS Commodore, to replace her last car which had been in an accident. She also set aside funds to complete some long-overdue improvements around her home, while reserving a portion to support some travel plans and any ongoing expenses.
With her finances restructured, Diana was able to transition into retirement on her own terms, removing financial stress and providing peace of mind and the opportunity to enjoy the retirement she had planned.
“This stage of life was meant to be about enjoying more freedom, not worrying about my finances. Being able to access the equity in my home has given me the flexibility to really enjoy these years — and that gives me incredible peace of mind.”
Why choose Inviva?
Expertise and support
Transparent costs
Flexible options
Quick access
Frequently Asked Questions
Can seniors use a home equity loan to buy a car?
Yes. Seniors can use a home equity loan to buy a car by accessing part of the value in their home. This option can be more flexible than a standard car loan, as there are no required regular repayments and you continue to own and live in your home. The loan is typically repaid when the property is sold, the last borrower moves out permanently or you choose to repay earlier.
How does a home equity loan for a car work for senior citizens?
Using a home equity loan to buy a car gives seniors several flexible ways to access the funds they need for a vehicle purchase. You can choose how and when to draw the money, depending on how the car is being bought. Drawdown options include:
- A lump sum to pay for the car upfront
- A regular income payment if you prefer to spread out related costs
- A line of credit, allowing you to draw funds only when required
These options give you control over how the loan is used and allow you to manage the timing of your payments. You can also make voluntary repayments at any time if you wish to reduce the loan balance or manage interest.
What are the benefits of using a home equity release loan to fund a new car purchase?
Using a home equity loan to buy a car can offer flexibility and control. You can access the funds in a way that suits your situation without taking on the regular repayments that come with a standard car loan. This can help preserve cash flow in retirement while still allowing you to choose a vehicle that meets your lifestyle or mobility needs. You also retain ownership of your home throughout the loan.
What types of cars can I buy using a home equity release loan?
You can use a home equity release loan to buy almost any type of vehicle, including a new car, a reliable used car, a caravan or a motorhome. The funding is not tied to a specific model or dealership, giving you the freedom to choose the option that best suits your lifestyle, travel needs or mobility requirements.
