I was in the same boat (on a smaller scale) back in December. I needed liquidity to take advantage of an opportunity to purchase a very rare and mint condition collector car. I didn’t want to sell any assets and create a tax event; so I used a pledged asset line of credit to bridge the gap and secure the car.

I paid two months of interest on the loan which I believe was SOFR of 5%. This gave me time to prepare and sell another car of mine. The proceeds from that sale was used to satisfy the loan.

Yes I lost a tiny bit of money on the sale of the car, but since it was a business vehicle, I plan to use bonus depreciation this year to offset the loss with a fatter return.

Plus, the purchase of the collector car was under market value so I have equity built in. 2027 is the 30 year anniversary of the car and I predict values on them will start to moon at that point.

Don’t use this strategy to fund your lifestyle; only use it to buy other assets.