Although the title "LTV" (loan-to-value) is most Frequently referenced to mortgages, the equivalent regulation applies to Car loans. Car finance companies and lenders benefit an Car loan's LTV ratio as a determining consideration when deciding if to approve or decline a automobile loan. Moreover, a lower LTV ratio is considered lower risk, and may qualify for lower rates, while a higher LTV ratio may causation a scale Nail. Using a bank's preferred LTV percentage, you can halt how yet the bank will loan on a van.
1. Contact the bank and boast gone what their average LTV percentage is. The LTV percentage of a specific bank will conclude how still they Testament loan on a van. Multiply the assessed value by the LTV percentage to determine how much the bank will loan on the vehicle. If the bank's LTV percentage is 85 percent of trade value, and the vehicle has a trade value of $11,500, the bank will loan $9,775 on it.
Ask whether their LTV percentage is calculated upon the vehicle's "loan" value, "trade" value or "retail" value.
3. Ask whether the LTV percentage includes TT&L (tax, title and license). If it does not, the bank may finance the TT&L on top of the LTV percentage; it it does, the percentage must include TT&L or you may have to shop for it out-of-pocket.
4. Look up the value of the vehicle using the same source the bank uses (NADA, Black Book, Kelley Blue Book, etc.), and then determine the appropriate value (loan, trade or retail).
5. Some banks lend 100 percent, others lend slightly bounteous, and others lend slightly less.2. Boast out which assessed value the bank uses. Most banks use NADA values; however, some use Black Book or Kelley Blue Book.