What is LTV on an auto loan?
LTV (loan-to-value) compares how much you owe to what the vehicle is worth. Many lenders use LTV to decide eligibility and pricing for refinancing.
The simple definition
LTV = loan amount ÷ vehicle value. If you owe $12,000 and the car is worth $15,000, LTV is 0.80 (80%).
Which “loan amount” should you use?
For refinancing, the payoff amount is often the more accurate number than balance (because it includes timing and per-diem interest).