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Lly when someone is talking about car loan value they're referring to used cars. There're three nationally recognized, widely used car valuation guides: NADA, Kelly Blue Book and Black Book. You can access all three car value guides online with no charge. Which book is used to determine the value of your car is dependent on what part of the country you're in. Car values vary in each book and can vary from one geographic region to the next. Certain cars demand a higher price in certain regions. For example: four wheel drive cars are typically more popular in the south than in other areas of the U.S.; therefore, a car could have a higher value in Texas than in New York. New Car Value and Car Loans For new cars, research how much a dealer has to pay. That value is called an invoice price. NADA, Kelly Blue Book and Black Book all show dealer cost before any other car manufacturer discounts. Most car loan lenders consider true dealer cost as the basis for determining how much they will loan for a car. For example, if dealer cost on a car is $25,000 and they sell the car for $27,500, a lender may approve a car loan for 100% of dealer cost or $25,000. The car loan lender uses dealer cost to determine the car loan value. How much over dealer cost you pay usually affects how much down payment is required. That's another reason to go online and research your car and its value, so you can negotiate the best possible price! Understanding car loan value will save you money in the long run, so do your research before applying for your loan! Apply Online Today Site Map Auto Research Auto
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