Auto Loan Value: Your Car's REAL Worth

One of the most important factors in securing an auto loan is finding out the real value of the car you are buying. Auto loan value, known also as loan value, book value or retail value, refers to the assessed worth of your vehicle. It is based on many different factors, such as make and model, manufacturer's suggested retail price and car rates, transmission type and mileage (if it's a used vehicle). Other features such as airbags, sophisticated audio system and vanity accessories also affect the value or worth of the vehicle.

When buying a new or used vehicle, many of us would resort to securing some method of financing. In doing so, an assessment of the value of the car will be done. In most cases, the loan value of your car will be the basis for pricing and determining the amount of money you should borrow. The loan value will also give you an idea of the amount of down-payment you'll need to pay the dealer. Knowing the real value of a car BEFORE purchasing one is a necessary step; you surely don't want to waste your dollars on an over-valued car.

Written by: Katrina Marion

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