@Anonymous wrote:It'll generally be the wholesale (trade in to dealer) value, since that's what they expect to get if they auction the car themselves. It is rarely the retail/sticker value.
If the car has a wholesale value of $10,000, the cap for financing will be $12,000 - that's inclusive of all tax, title, license, etc. That is the maximum amount they will finance (pay to the dealer in cash on your behalf). So if you're underwater more than $2000 on your trade-in in that scenario, or you're buying a car that is way overpriced for your region, you may have difficulties getting financing without paying some cash into the deal yourself to lower the total financed amount below the threshold.
The older a car is, and/or the higher its mileage, as well as your credit scores/histories and the length of the loan term may lower the threshold as well. 120% LTV max is fairly universal for new cars, but with used cars it can vary.
This is good data info. Thanks!!
