Does any one know how these values are set? i know that wholesale/trade-in value is set by the local auction's that take place and are publishished in a book called The black book and is based on the previous week's sales values of the auction house. but how do bank's ,insurance companies figure loan value on any given truck? i have found that Ford's are closer in the differance between retail and loan value then a chevy or a dodge is...

 

They usually take a percentage of the retail NADA value as a guideline. Your credit rating is what ultimately determines it, though.

 

I used to work at HFC, and we used to rate cars from the NADA book and then we applied a percentage to the wholesale value. 90 or 100 for new stuff, I think, then it went to 80 for cars a couple of years old, then to 60. We didn't assign loan value after --I think-- 5 or 6 years. (this was '77 to '83) We started seeing classics but no one had a "book" on them at that point.

Since we didn't finance new cars, we didn't see many new ones. Had a couple of near new jobs that, because of the interest rates at the time, I was able to make some nice big loans on for some guys, worked out pretty well.

(Imagine hocking your Mercedes Turbo for $10,000 @ 18% and it being a good deal.....)


As indicated, once you get to a certain level, the lender is hanging his hat more on your record than the value of the vehicle.

Your car that you work on, maintain and enjoy is worth more to you than to anyone else.

A repo with no history, especially with any "custom" work is worth a fraction.

Some people don't like 44's on a mini truck for example, while the guy who put them on feels they make the rig worth it's weight in gold.

 

A lot of that is regional. Out here, F250/350's easily bring over wholesale Kelly (we use Kelly on the left Coast), 150's and Rangers are quite a bit back of book. As already mentioned, the strength of the buyer will ultimately determine the loan amount.