LTV Calculator Auto



LTV Calculator Auto is used to calculate the loan to value ratio for your auto. Loan to Value Auto Calculator is calculated based on your car's current value, and your loan balance.

Loan to Value Auto Calculator

Car Value
$
Car Loan Balance
$

What is LTV?

LTV for auto is the ratio between your car loan and the value of your car. If the car that you want to buy is worth $30,000, and you want to take out a loan of $25,000, the LTV ratio will be 83.34%.

When lenders issue loans, they are taking a risk as the borrower may default on his loan. Therefore, lenders use the LTV ratio to determine whether or not to finance your car purchase.

Many borrowers like to borrow more than the value of the car that they are buying, in that case the LTV ratio will be over 100%. If your LTV ratio is over 125%, most lenders will not grant you the loan because there is a good chance that you may walk away from your payment.







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