Today, we’ll shed light on an essential concept that plays a crucial role in the lending industry – “Loan-to-Value” or LTV. Whether you’re simply looking to understand the intricacies of borrowing against an asset or looking for auto financing, understanding LTV is paramount. Join us as we unravel the mystery behind this concept and explore how it impacts your borrowing decisions and overall financial health. Let’s embark on this insightful journey together!
As an automotive financing company, understanding LTV is vital for both borrowers and lenders alike. In this video, we’ll break down what LTV means in the context of auto loans, and how it influences the approval process, interest rates, and overall financial decisions. Let’s explore the world of LTV and gain valuable insights to make smarter automotive financing choices.
What Does “Loan to Value” Mean? Transcription:
“When it comes to car financing, loan to value refers to the amount of money borrowed compared to the official book value of the vehicle. A lower loan-to-value ratio increases the likelihood of approval. Lenders typically use the “Trade or Wholesale Value” when determining the LTV. The primary valuation services employed by lenders to calculate the “Trade or Wholesale Value” include NADA, Kelly Blue Book, and Black Book. For more information, please visit our website at OnyxFinancial.com.”