What Does Loan To Value Mean When Buying A Car ✭

: Lenders typically use the MSRP for new cars and wholesale book values (like Kelley Blue Book) for used cars, rather than the dealer's sticker price. How to Calculate the LTV Ratio of Your Car - SoFi

: If you borrow $20,000 for a car valued at $25,000, your LTV is 80% .

To find your LTV ratio, divide your loan amount by the car's market value and multiply by 100: :