Creative Buying/Selling of My Car

[Eric Telese]

I recently had an idea that grew out of listening & learning about creative financing and BRRR, refinancing, etc. I currently own a 2013 Mustang GT that I purchased three years ago under market value from a motivated seller who needed to get rid of his high monthly payments. I got the car for 27,500 with only 10k miles on it. Like new, very well treated, low miles, etc. Took me a year to find this car used in the color combo i wanted.

Three years later and only added 15k miles to it. (25k total). I am thinking of selling it before the car depreciates any more. I think I may be able to sell for close to what I paid for it. I can then find another good deal- used vehicle for below market value, with lower miles, and a bit newer. 

I can pull all of my equity out of this car and get a 1.6% interest rate on a used car loan from a local credit union. Put the bulk of my equity into the bank and use it to put towards my savings to fund my first real estate deal (probably a flip). 1.6% is virtually free money. Let the bank carry the loan for me, and have the funds readily available to do other things with, as well as drive a newer and less used car. I would virtually have driven a beautiful car that I love for the last three years for free or just a few thousand bucks (if I can't sell for what I want). 

Repeat the cycle in a few years when I add some mileage onto the newer car and own it in full. I am against buying a brand new car because we all know how much cars depreciate. So I love finding nice, lightly used cars at value prices. I also would not lease a car like this. What do you guys think? Am i missing something or great idea?!