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Using a 401(k) loan to buy a car: Is it ever a good idea?
Thinking of using your 401(k) buy a car? Review the potential downsides first.
The better you understand how loans work and how lenders think, the better equipped you are to save on your loan.
— Pippin Wilbers
About the author
Pippin Wilbers is a Bankrate editor. He joined the personal loans team in 2024, though he's also contributed work on the auto loans, credit cards, student loans and small business loan verticals. Pippin is passionate about demystifying complex topics, such as car financing or finding the best personal loan, and helping borrowers stay up-to-date in a changing and challenging borrower environment.
Pippin stays on top of industry news sources, such as TransUnion and Experian. Working with reporters Hanneh Bareham and Denny Ceizyk, he analyzes industry data and trends and asks: "What does this mean for borrowers?"
Pippin lives in Denver. Before joining Bankrate, he brought vital news to his community as a small-town newspaper reporter. In his spare time, he enjoys foraging for mushrooms, reading, and dabbling in amateur entomology.
The better you understand how loans work and how lenders think, the better equipped you are to save on your loan.
— Pippin Wilbers
Thinking of using your 401(k) buy a car? Review the potential downsides first.
Thinking of using your 401(k) buy a car? Review the potential downsides first.
Knowing the OTD price will help you figure out how much your new car really costs.
Knowing the OTD price will help you figure out how much your new car really costs.
Auto rebates are money-back deals from manufacturers that lower vehicles’ costs.
Auto rebates are money-back deals from manufacturers that lower vehicles’ costs.
H&R Block is the best bet for those who qualify for the free edition and want the convenience of multiple filing options.
H&R Block is the best bet for those who qualify for the free edition and want the convenience of multiple filing options.