The creepy thing is that the 14% interest rate is not the rate you'll actually be paying because it is an APR. I suppose it's a moot point anyway, since Direct Line and other lending institutions also quote APRs (so you
are comparing apples to apples). But the real rate is the effective annual rate: for 14% APR, the EAR is almost 15%, for 8% APR, the EAR is only 8.3% (assuming monthly payments). So in actuality, by going with the 8% loan, you are doing even better than what the 6% difference in APR would indicate.
I'll be using an equity line of credit to get my car - 6% interest
and the interest is tax deductible (at least in the US
).