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Some quick FAQ's from AutoLoans:
Q: What is a loan to value ratio?
A: This is a number calculated by dividing the amount of the loan by the vehicle value published in a recognized auto pricing guide - for example, those published by the National Auto Dealers' Association or Kelley Blue Book. Example: If the NADA price for the vehicle you select is $10,000 and your loan to value ratio is 105%; you can spend up to $10,500 (including taxes, license, registration, after market accessories and/or extended warranty coverage) as long as the entire amount is less than the maximum approved amount. The pricing guide that is used varies by state.
Q: What does NADA or KBB mean?
A: NADA and KBB are auto industry pricing guides; NADA stands for National Auto Dealer's Association and KBB stands for Kelley Blue Book. The NADA pricing guide is used to determine the loan to value ratio in most states, the KBB pricing guide is used to determine the loan to value ratio primarily in California.
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