What is a “loan to value” (LTV) ratio?
This is a number calculated by dividing the amount of the loan by the vehicle value published in a recognized auto pricing guide – like those published by NADA or Kelley Blue Book. For example: if the NADA price for the vehicle you select is $10,000 and your LTV ratio is 105%, you can spend up to $10,500 (including taxes, licenses, registration, after-market accessories, warranties, etc.) as long as the entire amount is less than your maximum approved amount. The pricing guide used to value vehicles varies by state.
