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Terminology - Loan to Value

Loan to Value - As it pertains to automotive financing, loan to value is the amount financed relative to the published book value of the vehicle. Lower loans-to-value have a better chance of approval. Lenders usually use "Trade of Wholesale Value" when calculating loan to value.

The major valuation services that lenders use to calculate "Trade of Wholesale Value" are:
  • NADA
  • Kelly Blue Book
  • Black Book