150%+ LTV Bank/Financial Intuition Options

[cyberleam]

Hi everyone,

I'm currently in the market to trade in my vehicle for a new one and I'm looking for banks or credit unions that are flexible with their loan-to-value (LTV) ratios—specifically those that will allow 150% LTV or higher. I’m based in the DC/Maryland/Virginia (DMV) area, but I’m open to working with institutions outside the region if they offer the kind of flexibility I need.

If anyone has experience with banks or credit unions that cater to these situations, especially for people trading in a vehicle with negative equity, I’d really appreciate your recommendations.

 

Thanks in advance!

[MarvBear]

Welcome to our community here at Creditboards.

[cyberleam]

Hello! Thank you so much! Glad to be here! 

[MarvBear]

You need a 150% advance to escape your negative equity and start the process all over again.  Are your advance calculations based on published trade or retail figures?

[cyberleam]

Hi Marv! Yes, my calculations are based on my actual trade-in value and the full purchase price of the new vehicle, including taxes and fees. I currently owe $123K on my car and I’m getting trade-in offers ranging from $81K to $86K. The main issue is the LTV due to the negative equity.

My credit score is in the mid-700s, I have no major credit card debt, and my income is strong. My goal is to reduce what I owe—ideally into the lower $90K range—and significantly cut my monthly payment, ideally in half. I'd like to move from this from a high-performance sports wagon into a more practical SUV like a 4runner TRD Pro or TRD Model or a Tacoma TRD Pro or TRD model, so I’m just trying to reset and get into something that makes more financial sense long-term. It's just been difficult finding a bank that can accept that LTV ratio. And I've contacted many of them across the US. 

[MarvBear]

13 hours ago, cyberleam said:

Hi Marv! Yes, my calculations are based on my actual trade-in value and the full purchase price of the new vehicle, including taxes and fees. I currently owe $123K on my car and I’m getting trade-in offers ranging from $81K to $86K. The main issue is the LTV due to the negative equity.

My credit score is in the mid-700s, I have no major credit card debt, and my income is strong. My goal is to reduce what I owe—ideally into the lower $90K range—and significantly cut my monthly payment, ideally in half. I'd like to move from this from a high-performance sports wagon into a more practical SUV like a 4runner TRD Pro or TRD Model or a Tacoma TRD Pro or TRD model, so I’m just trying to reset and get into something that makes more financial sense long-term. It's just been difficult finding a bank that can accept that LTV ratio. And I've contacted many of them across the US. 

By your own posting you admit to being ~42000.00 upside down.  How much have you planned to use as a downpayment to help offset your negative equity?

[cyberleam]

Hello! Thank you so much for your response and assistance! Yes, I’m admitting to being anywhere from 37,000 to 42,000 upside down based on a trade-in value I received. I’d also be willing to admit the car that I have it’s a 2022 Audi RS6. I purchased it under my LLC a couple years ago for business use and because it meets section 179 being over 6000 GVWR.I have a lot of capital to put down but my goal is that I’m not trying to. So that’s why my question above I'm asking if there are financial institutions that would accept an high LTV.  Depending on the car, this will put my LTV up at around 160% -interested vehicles also listed in my previous message. I’ve actually contacted multiple financial institutions nationwide and a lot of them of course are a big NO. There are some that I found that would, but they’re located in a different state and their requirement is to be a resident, or specific type of employee in that state to qualify. Those institution were credit unions. I’ve also asked my credit union and my business & personal bank as well.  Yes I could simply just keep the car forever, or just pay it down until it gets somewhere close to the actual value or I can put a large amount of money down to carve the negative equity. But my main goal is to find a vehicle preferably around 60,000. +37,000 to 40,000 which will put me somewhere around 100K or a bit under. 

 

 

 

[hdporter]

It's unclear what your overall financial picture is but, generally speaking, I would expect that the lending criteria and rate applied to such a loan would be equivalent to what you might face were you to simply consider seeking an unsecured loan to clear your "under water" negative equity in the vehicle, and then separately financing 90%-100% of a new vehicle cost.

 

Truth is, it might be easier (in terms of available lenders and loan options) if you went that route instead of trying to accomplish through a single loan transaction.