PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What does the loan-to-value rate on a car loan mean?
"I'm trying to get a car loan. My lender told me one of the various factors that go into my approval is the loan-to-value ratio?
What does a loan-to-value ratio mean?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“As the name implies, a loan-to-value ratio is how much the loan amount is divided by the cash value of the vehicle.
A good loan-to-value ratio is 100% or less. This means that you won’t be upside-down when you finally sign for a car loan.
In most cases, the maximum loan-to-value ratio you can have to get approval is 125% to 130%. Any more than that, and you’re likely to get declined.”
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies