 # LTV Calculator Auto

LTV Calculator Auto calculates your loan to value ratio for your vehicle quickly. The auto LTV calculator will calculate the loan amount from the LTV ratio and vice versa. LTV auto is calculated based on the vehicle value and the loan amount. Simply enter the vehicle value and the loan amount or the LTV, and the LTV ratio will be calculated automatically.

## Loan to Value Auto Calculator

Vehicle Value
\$
Loan Amount
\$
LTV
%
 Loan Amount \$30,000.00 LTV Ratio 60%

## What is loan to value ratios for car loans?

The loan to value ratio for a car loan is similar to a mortgage on a house. LTV ratio is the ratio of your auto loan to the market value of your car, and it is expressed as a percentage. For example, if you are taking out a \$20,000 loan to buy a \$25,000 car, your LTV ratio will be 80%. Our loan to value calculator for cars will automatically calculate the LTV for you once you enter the vehicle value and the loan amount.

## Why do lenders calculate LTV for car loans?

In a car loan where you finance to purchase a car. Lenders are taking a risk to make a loan to you because you may default and stop making payments. To protect their investment, they required you to have collateral against the car loan. In the case of a car loan, your collateral will be your car. Lenders will take your car if you stop making payments.

However, if the loan that you take out is worth more than the value of your car, lenders and banks will lose money if you default. To reduce their risks, lenders may require you to have a lower LTV, which means the loan that you take out is less than the estimated value of your car. Lenders use the LTV ratio to determine whether or not to grant an auto loan for borrowers. If your LTV ratio is too high, you may get rejected. If your LTV ratio is higher than 125%, you may have a hard time getting a car loan or refinancing your vehicle. One effective way to reduce your LTV is to make a bigger down payment or find a cheaper car so you can get a smaller loan.

## How to calculate LTV auto loan?

Following is the LTV vehicle loan formulate on how to calculate LTV auto loan. LTV Auto = Loan Amount / Car Value LTV ratio is expressed as a percentage value. For example, if you borrow \$25,000 to buy a \$50,000 car, your LTV will be LTV Auto Ratio = \$25,000/\$50,000 = 50%

## How to use our LTV Calculator for auto loans?

There are two ways to use our LTV calculator for auto loans. LTV Ratio - You can calculate the LTV ratio by entering the vehicle value and the loan amount. Loan Amount - You can also calculate the loan amount by entering the vehicle value and LTV ratio. In both cases, your results will be returned instantly as you type.