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.
“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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