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