What is the loan-to-value (LTV) ratio for used car loans?

The loan-to-value (LTV) ratio for used car loans is typically up to 90% of the car’s value. You can borrow up to 90% of the car’s price as a loan. The remaining 10% is the amount you will need to pay upfront yourself, called the down payment. Just think of it as paying a small part first, then financing the rest through your loan.

Wondering if that’s good or bad? It’s actually quite standard. Higher LTV means less cash upfront but also more to repay over time. If you want to make life lighter on EMIs in the long run, consider increasing your down payment.

Quick summary:

• Maximum LTV for used cars: Up to 90%
• Down payment generally required: Minimum 10%
• Your chances of a higher LTV improve with good credit and neat paperwork

So if you want to buy your dream car, knowing your LTV ratio helps you prepare your budget and keep those loan surprises away.