Can you only finance up to 120% of a car's value?

Can you only finance up to 120% of your car's value? I want to get some extra money when I finance my car so I can do upgrades. I'm not exactly sure how much I'll need, but it will probably be around 20% to 25% of the car's value.

Answer
“Most lenders will only give you 120% to 125% of the value of your car, but you have to meet certain requirements:
  • you have outstanding credit
  • you have low debt-to-income
And that amount is a pretty good deal, especially when you consider a car is a depreciating asset. So if you can get that new car loan, chances are you should take it.”
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Eric Schad
Answered on Jul 01, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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