topic Re: ltv ratio in Auto Loans

ltv ratio

Anonymous — Fri, 11 Sep 2015 20:32:48 GMT

Sorry for the question. How do you calculate 95% LTV for a $40000.00 loan. I am going to purchase a 2015/2016 mustang GT with Performance Pack. With the features I want in the houston area I figure and can get the car for approx 36,000-37000 plus ttl and I am going to be about 2000-2500 upside down in current mustang. My interest when I decide to this will be 5.49%

Thank you for your help

Re: ltv ratio

taxi818 — Fri, 11 Sep 2015 22:41:30 GMT

@Anonymous wrote:
Sorry for the question. How do you calculate 95% LTV for a $40000.00 loan. I am going to purchase a 2015/2016 mustang GT with Performance Pack. With the features I want in the houston area I figure and can get the car for approx 36,000-37000 plus ttl and I am going to be about 2000-2500 upside down in current mustang. My interest when I decide to this will be 5.49%
Thank you for your help

Honestly. Trying to understand your question so i can help. So lets say the Value of the car is on the upper end. 37k as you say. What they are saying is they will loan you 95% of the cars Value. Where is the 40k coming from that you are mentioning? so if you are talking about 40k. Just subtract 5% and this will tell you. In this case. 10% being 4k. 5% being 2k.

So 38k would be your answer of the 40k you mentioned. But if the value of the actual car is 38k They are saying they will only loan $36.600 on that car. I guess the rest you will have to come out of pocket. Including Tax tag and title and whatever other hidden gems are in there. like Dealer preparation. Which i found out the hard way. Gap insurance? if you want it.

Re: ltv ratio

Anonymous — Fri, 11 Sep 2015 23:01:57 GMT

40000 is the amount im approved for. Thank for your help taxi

Re: ltv ratio

Anonymous — Fri, 11 Sep 2015 23:08:47 GMT

Meaning they wont finance the ttl?

Re: ltv ratio

taxi818 — Fri, 11 Sep 2015 23:12:57 GMT

@Anonymous wrote:
Meaning they wont finance the ttl?

They should. Honestly most lenders will do 120% ltv. unless they told you 95% if you are approved for 40k. Then you should be good to go. the car i got wednesday. I put nothing do. They not only financed the car which was 17.8k. They financed. Tax , tag and title. Also. they financed my platinum warranty as well as the Gap insurance. So total out the door was 24k. so it was about 140% ltv. Im happy with it. with no money down. i get to hold on to my cash.

Re: ltv ratio

Anonymous — Fri, 11 Sep 2015 23:20:11 GMT

I guess I'll see when the time comes. Have to get my score up a little. Thank you for answering

Re: ltv ratio

Anonymous — Sat, 12 Sep 2015 12:32:02 GMT

@Anonymous wrote:
Sorry for the question. How do you calculate 95% LTV for a $40000.00 loan. I am going to purchase a 2015/2016 mustang GT with Performance Pack. With the features I want in the houston area I figure and can get the car for approx 36,000-37000 plus ttl and I am going to be about 2000-2500 upside down in current mustang. My interest when I decide to this will be 5.49%
Thank you for your help

Usually when a bank or CU says they will loan you 95% LTV up to a certain amount, that means they will finance max 40K. So if your out the door is 41K with tax and title, but the car is worth 40, they will loan you 38K, and you will be responsible for the rest.

Re: ltv ratio

Anonymous — Sat, 12 Sep 2015 13:32:42 GMT

Thanks for the reply hanales. So does that mean I would have to pay my negative equity as well? Or can that be rolled into the financing?

Re: ltv ratio

Anonymous — Sat, 12 Sep 2015 15:23:21 GMT

Based on what you have said, you will have to pay the negative equity as well. From what your question said, they will finance 95% of the value of the car. So let's say the car is worth $40,000, they will finance at most $38,000. Anything about $38,000 whether it is what you are paying for the car, the TTL, negative equity on the trade, extended warranty, would be your expense out of pocket.

Re: ltv ratio

Anonymous — Sat, 12 Sep 2015 15:32:19 GMT

That is what i fgured. Thank you for the reply Cruznmore

Re: ltv ratio

Hoya08 — Sun, 13 Sep 2015 10:09:41 GMT

Good info all around. Another way of looking at it is: the bank will loan 95% of the MSRP, with the loan NOT to exceed $40,000 (to include TTL and negative equity).

The key factor is the '15/'16 Mustang MSRP. So... if:

1) The Mustang MSRP is $45k, 95% LTV is $42.7k. The bank will lend $40k

If the negotiated sale price is $37k, then TTL and negative equity may be covered by the $40k loan, or minimze your down payment.

2) The Mustang MSRP is $38k, 95% LTV is $36.1k. The bank will lend you $36.1k

If the sale price is $37k, then you will require a down-payment to cover the loan and sale price difference, as well as TTL and negative equity.

Re: ltv ratio

Anonymous — Sun, 13 Sep 2015 17:08:44 GMT

Thank you Hoya08 for the info. Yeah my plan is to somehow get the whole loan with me being able to put the least amount possible down.