Lump Sum: HELOC or Used Car (remainder on HELOC)

[quandary]

I'm in a bit of a unique situation and looking for your advice. I found this old thread that is similar, but not my exact situation:
Under "Personal Finance" 24608-heloc-car-loan (can't link yet, not enough posts)

My current vehicle is being bought back by the manufacturer. I will net $20k from the repurchase. I have a HELOC $40k at 4.5% adjustable.
Should I plunk the $20k straight on the HELOC and take a $12-$15k used car loan at 2.99% for 60 months, or pay cash for a used car (same $12-$15k range) and put the remainder on the HELOC?


My "warm fuzzy" comes from the rationalization of paying cash for a replacement vehicle, having no car payment, reducing the number of loans, and using the old car payment to pay extra on HELOC. However, I'm not sure the right emotional decision is the right logical/financial decision.

[siggy_freud]

Use it on the Heloc. It's higher interest AND adjustable, and therefore the higher-risk loan. I know the warm and fuzzy is hard to pass up, but the HELOC is most important to tackle.

[mrpaseo]

Use it on the Heloc. It's higher interest AND adjustable, and therefore the higher-risk loan. I know the warm and fuzzy is hard to pass up, but the HELOC is most important to tackle.

Exactly what I would have said, if you can get a locked in fixed interest on the vehicle loan, this would be your best bet (Financially). Don't shy away from a down payment that may afford you a lower interest on the loan though.

Dear I mention to purchase a $2-3,000 vehicle and use all the extra money that you save from vehicle payments to pay down the HELOC? Your call as I do not know your situation.

Best.