Loan Balance vs Resale Value Calculator

Knowing whether you owe more on your car than it's worth can save you from a costly financial mistake when selling, trading in, or refinancing. Enter your current loan balance, current vehicle value, vehicle year, and optional mileage into the Loan Balance vs Resale Value Calculator to see your Loan-to-Value Ratio. Secondary outputs include your vehicle equity (positive or negative), equity status, and a refinance outlook based on your LTV.

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Enter the amount you still owe on your vehicle loan

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Enter your vehicle's current market value

miles

Current odometer reading

Results

Loan-to-Value Ratio

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Vehicle Equity

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Equity Status

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Refinance Outlook

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Frequently Asked Questions

What is a Loan-to-Value (LTV) Ratio?

The loan-to-value ratio is a comparison of your vehicle's current market value to how much you still owe on the loan. It's calculated by dividing your loan balance by the vehicle's value and expressed as a percentage.

What's a good LTV ratio for vehicle refinancing?

Generally, an LTV ratio below 100% is ideal for refinancing, as it means you have positive equity. Ratios between 100-125% may still qualify for refinancing with some lenders, while ratios above 125% can make refinancing more challenging.

What does negative equity mean?

Negative equity occurs when you owe more on your loan than your vehicle is worth (LTV above 100%). This is also called being 'upside down' or 'underwater' on your loan. It's common in the first few years of a loan due to depreciation.

How can I improve my loan-to-value ratio?

You can improve your LTV ratio by making extra principal payments to reduce your loan balance, or by maintaining your vehicle well to preserve its value. Time also helps as you make regular payments.

Should I refinance if I have negative equity?

Refinancing with negative equity is possible but may be limited to certain lenders and could require higher interest rates. Consider if the new terms still provide monthly payment savings or other benefits.

How often should I check my vehicle's LTV ratio?

It's wise to check your LTV ratio annually or when considering refinancing. Vehicle values can fluctuate based on market conditions, mileage, and condition, affecting your equity position.

What factors affect my vehicle's resale value?

Key factors include vehicle age, mileage, condition, maintenance history, accident history, market demand, and seasonal trends. Regular maintenance and careful driving help preserve value.