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How can I determine the "loan value" on a used car?

Frequent Contributor

How can I determine the "loan value" on a used car?

When purchasing a used car, what are the factors a lender uses to determine the loan Value? I will be financing through my local credit union. Just wondering, do they use NADA or KBB?
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Valued Contributor

Re: How can I determine the "loan value" on a used car?

 


going2tdc wrote:
When purchasing a used car, what are the factors a lender uses to determine the loan Value? I will be financing through my local credit union. Just wondering, do they use NADA or KBB?

They usually use the black book for used cars. Then add percentages for other values.

 

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 4
Frequent Contributor

Re: How can I determine the "loan value" on a used car?

Do you mean Loan-to-vaiue (LTV)?  It has been my experience that while a dealer will use the Black Book to determine wholesale values for vehicle trade-ins, lenders will use NADA trade-in value (of the vehicle to be purchased) to determine LTV. 

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New Contributor

Re: How can I determine the "loan value" on a used car?

Do you have a particular vehicle in mind?  You can always call your CU and see if they can give you the value of the vehicle.  I called PSECU yesterday to check on a vehicle and they were able to tell me what they found the value to be. 


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