How to acquire a Higher Loan-To-Value Percentage on your Auto Loan? Finance Articles | September 4 Cheap Jordan Melo 1.5 , 2016
Are you dreaming of a new car? You can avoid down payment and ensure higher loan-to-value percentage on your next auto loan. How you can do it? Here’s how.
Often while purchasing a new car, obtaining an auto loan that is equal to the value of your car can be tricky. The whole point of applying for an auto loan is to ease the financial burden in acquiring your new car. Therefore, it is best when the maximum amount of your cost is covered through the auto loan. Therefore, any auto loan with an impressive loan-to-value percentage is sought after.
So, what is Loan-To-Value Percentage and how does it work?
Technically, a loan-to-value percentage is the amount of the loan financed, relative to the value of the car. It is usually calculated by dividing the loan amount by the current value of the vehicle.
Under an ideal scenario, the loan-to-value percentage on all auto loans is below 100%.However, on a situational basis, lenders can extend loans up to 150% of the value of the car. For instance, assume you want to buy a car worth $50,000 and the loan-to-value percentage on the auto loan is 120%. It indicates that you still have $10,000 to spend on other expenses while you can easily cover the cost of your new car.
A lower loan-to-value percentage on an auto loan means a lower risk for the lender. However, there are a few ways to obtain a loan-to-value percentage which is higher than the value of the car you want to purchase.
What should you keep in mind to obtain a Higher Loan-To-Value Percentage?
A Clean Credit History
A squeaky clean credit history is by far the most essential factor in not only getting an auto loan, but also getting higher loan-to-value percentage. Without a good credit history, accessing an auto loan can be difficult and it might cost you a tad bit more. Therefore, it is imperative to maintain a good credit record as it is exceedingly important in acquiring a higher loan-to-value percentage on your auto loan.
Type of Car
Whether you are buying a new car or a used car, your repayment options and loan-to-value percentage on auto loan can greatly vary. Surely, buying a new car has its own set of benefits as you are backed by a warranty for a few years. Additionally, the loan-to-value percentage on used cars may not be absolute as against new cars. Therefore, an auto loan for a newer car can cover your loan completely and in some cases even extend it to an amount more than the cost of the car that you want to purchase.
Steady Income
The primary criterion for qualifying for an auto loan includes a steady income. For any lender, a steady income stands as proof that you are capable of repaying the loan amount in the given time period. Usually, lenders ask for payment stubs or bank statements to validate your income. With a steady income of the past few years, obtaining a higher loan-to-value percentage on your auto loan is possible.
Taking the above points into consideration, you get a clearer picture on how a loan-to-value percentage on an auto loan works and the factors you should consider so that you can bargain for a higher amount on your auto loan. Always carry out an extensive research and read the loan agreement meticulously before you decide on choosing an auto loan.
Article Tags: Higher Loan-to-value Percentage, Higher Loan-to-value, Loan-to-value Percentage, Auto Loan, Credit History, Steady Income
There are several modes of communications that you may find around you. Communication is a vital thing as you may require it at the dead of night and can have a bit of solace when you really get it after searching for a long time. Emergencies are such that you will have to find from anywhere in your city to meet up your demands. Often in these times, you pray that if there had been a good vehicle providing system, then you would have travelled a long distance at an ease. Yes to meet up your demand, these days there are car agencies or organisations rather coming up with a lot of facilities. You can easily hire a vehicle from lower range to higher range, depending upon your needs. There are different kinds of vehicles that you can get from different places, no matter at which place you want it in your city.
A huge range of services are there to meet your different demands like the followings:
1) Party outing
2) Weekend outing
3) Office tour
4) Emergency move
No matter whatever will be your requirement, you will get that kind of service at your doorstep. The vehicles are large enough to hold more than twenty people for a party outing! They have all kinds of facilities in them, starting from the food facility, which will include different kinds of drinks, great dishes to add some delight to your party, there will be an amazing music and light system. So, you can really rock a lot and can have a wonderful evening with your friends while travelling in the mid of eth best countryside or nearby spectacular mountain or seaside. Thus, your dream night is not far away. All you need to do is to come in contact with eth right kind of group that will help you to get these kinds of services.
Irland Inside
Thema drucken
21.08.2019 05:40
Antworten
