need some advice

[sterl05]

I need some question ask. ok i was approved for 80% percent finacning for a vehicle but heres the catch i have to have the equity of the used suv i want to get because my loan officer bascially told me. find a suv at least 18,900 buts that the 80% financing with 20% equity in it. So i could used the equity as a down payment, AND  how do i find the equity?

[Anonymous]

Basically if he is going to let you use the equity you need to find a vehicle that is priced  at 80% of its value. You first need to know what source he uses for values.

Does he used edmunds, kbb, nada, manheim?

Then you find a SUV priced at 80% of its actual value. For a vehicle that is for sale for $18,900 its book value would have to be at least $23,625.

So you need to know what source he uses for values and then do you know what kind of SUV in particular you want?

[sterl05]

ok i found a truck for th 80 % now i have done so, what do i have to do to find the equity in that truck to used it as a down payment?

[Anonymous]

Without knowing more about the details of the process I would suggest contacting the loan officer and asking him specifically. I could only speculate as to how he wants to do that as I am not really familiar with that loan process other than the basic information I gave you earlier and would not want to give you inaccurate information.

[sterl05]

basically my loan officer toldme i i was approved for 80%along with that i was told tfind a vehicle with atleast 20% equity in it. thats all in a nut shell

[Anonymous]

It sounds like he is just going to make it essentially look like you are buying the vehicle for book value and then only finance 80% saying you are putting 20% down. If you found the truck you want call him up and tell him you found it and have him take you to the next step.

[sterl05]

i will i tomorrow but now i need to find out if  the truck has 20% equity in it

[Anonymous]

For an educated guess go to www.nada.com and click on used prices. Put in all the information about the truck and it will give you the book value. If the sale price of the truck is 80% or less then there you have it. Alot of banks use nada for their loan values.

[sterl05]

ok i did and the retalin value is 22,550 and the selling price is 19,892. so i subrated that and got a value of 2,658 so would that be the equity?

[Anonymous]

The 80% mark would be $18040. So to make the equity 20% you need to get the seller to accept that amount or less for the truck or come up with $1852 cash to put with it to make the 80/20 split.