Loan to Value calculation in Autovance Desk using MSRP on new and CBB, KBB, and JD Power valuation data on pre-owned

Loan to Value (LTV) is an important calculation for Sales and Finance Managers to determine the maximum amount to finance on vehicle. Most lenders have a cap based on the MSRP of a new vehicle or the clean book value of a pre-owned vehicle shown as a percentage. For example, 120% of the MSRP is the maximum loan to value. This maximum LTV can vary depending on the buyer's credit rating, but having this value shown when structuring a deal gives a better indicator for approval odds.

Using the MSRP for new vehicles, this LTV number could be easily calculated. For pre-owned, it would require Canadian Black Book data integration, or for the US market JD Power or Kelly Blue Book values. This would be very convenient information to have when building a deal with a lot of aftermarket products (warranty, protection packages, accessories, etc.) or negative equity on a trade.