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Auto Financing 125% LTV
Auto Financing for business owners and purposes at low rates and 125 LTV at Lending Network, LLC. Purchase or Refinance auto loans. Funding in 24 hours. If auto loan application is submitted before 11 am EST, funding the same day. Business owners needing quick cash and have equity in their vehicles can do a Cash-Out Refinance on their automobiles and get cash within 24 hours. Lending Network LLC offers the lowest rates on auto loans from our nationwide lending network of wholesale automobile direct lending partners. Contact us at contact@lendingnetwork.org. The team at Lending Network LLC is available seven days a week, evenings, weekends, and holidays. Visit us at Lending Network LLC at https://www.lendingnetwork.org
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3 Replies
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Auto financing at 125% Loan-to-Value (LTV) is an option that allows borrowers to finance more than the value of the car they are purchasing. Here’s a summary of what this means, why it might be available, the benefits and potential drawbacks:
Understanding 125% LTV Auto Financing
LTV Definition
Loan-to-Value Ratio: LTV is a ratio between loan amount and car value. If a vehicle costs $20k with an LTV of 125%, you can borrow up to $25k.
Purpose of 125% LTV Financing
Extra Financing: This type of loan is typically used for additional expenses associated with buying a car, such as taxes, registration fees, or extended warranties. It can also be helpful for borrowers who have negative equity on their trade-in and want to roll it into the new loan.
Reasons for 125% LTV Auto Financing
Covering Additional Costs
Fees and Add-ons: Buying a car comes with extra costs; sometimes, higher LTV ratios help cover these without paying out-of-pocket.
Negative Equity Roll-Over
Trade-In Debt: When someone owes more money on their current vehicle than what that trade-in value would bring them at market price, they’re able to transfer those negative numbers onto another note while still getting behind the wheel of a new ride.
Benefits of 125% LTV Auto Financing
Lower Upfront Costs
No Down Payment: Many times, people can buy cars with little or no money down, which may appear attractive if there is not enough cash readily available.
Convenience: Rolling additional costs into the loan could make buying easier.
Flexibility Easier Transitions Between Cars: If someone wants to upgrade vehicles but still has the remaining balance from a previous purchase, being able to trade before the old loan is paid off would allow smoother handoffs between automobiles.
Potential Drawbacks of 125% LTV Auto Financing: Higher Interest Rates
Increased Risk: To offset the greater risks involved in larger LTV loans, lenders could enforce higher rates, which would mean paying more money over the life of the loan.
Negative Equity
Depreciation: Cars lose value fast, and when one owes more on a vehicle than its worth, trading becomes easier with taking a loss during the transaction.
Longer Loan Terms Extended Payments: To lower monthly payments, borrowers could opt to extend the number of months they pay, which would lead to higher interest amounts over the long run.
Important Considerations: Assess Your Financial Situation
Affordability: Ensure you can comfortably afford monthly payments considering the increased amount borrowed and possible rates.
Understand the Terms
Loan Details: Carefully read the loan agreement, including interest rate, term length, and any early payoff fees that might apply.
Evaluate Alternatives Other Options: Consider different ways to obtain financing or save up a larger down payment to avoid potential problems associated with high-level loans.
Closing
One hundred and twenty-five percent (125%) loan-to-value ratio automobile financing may help defray some of the costs of purchasing an auto, especially when additional expenditures must be financed or negative equity rolled over. Nevertheless, balancing these benefits against possible disadvantages like increased interest rates and the chance of ending up with more negative equity is important. Prospective borrowers should carefully think through this matter, taking into account their financial objectives and gaining a full comprehension of what the terms of the agreement for loans entail so they can make informed choices about their money.
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Lending Network, LLC specializes in auto financing and has some unique offerings. Here’s what you need to know:
125% LTV: They can finance up to 125% of the vehicle’s value, which is higher than many traditional lenders offer.
Target audience: Business owners and those who need auto financing for business use
What Lending Network offers:
- New auto purchases
- Auto refinancing
- Cash-out refinancing for business owners with equity in their vehicles
Fast funding:
- Most loans are funded within 24 hours
- Same-day funding if the application is submitted before 11 am EST
Rates: A nationwide network of wholesale automobile direct lending partners offers wholesale rates.
Flexibility: Options for both purchasing and refinancing auto loans.
Cash access: Cash-out refinances let business owners quickly tap into their vehicle’s equity.
While 125% LTV combined with fast funding may be tempting — especially if you’re a business owner needing quick cash — borrowers should carefully consider such loans’ terms and long-term implications. If your car depreciates rapidly, high-LTV loans could leave you “underwater” (owing more than it’s worth).
Like any financial product, read all terms and conditions carefully, compare offers from multiple lenders if possible, and consult an advisor before making a decision.
-
Lending Network, LLC specializes in auto financing and has some unique offerings. Here’s what you need to know:
125% LTV: They can finance up to 125% of the vehicle’s value, which is higher than many traditional lenders offer. Target audience: Business owners and those who need auto financing for business use
What Lending Network offers:
- New auto purchases
- Auto refinancing
- Cash-out refinancing for business owners with equity in their vehicles
Fast funding:
- Most loans are funded within 24 hours
- Same-day funding if the application is submitted before 11 am EST
Rates: A nationwide network of wholesale automobile direct lending partners offers wholesale rates.
Flexibility: Options for both purchasing and refinancing auto loans.
Cash access: Cash-out refinances let business owners quickly tap into their vehicle’s equity.
While 125% LTV combined with fast funding may be tempting — especially if you’re a business owner needing quick cash — borrowers should carefully consider such loans’ terms and long-term implications. If your car depreciates rapidly, high-LTV loans could leave you “underwater” (owing more than it’s worth). Like any financial product, read all terms and conditions carefully, compare offers from multiple lenders if possible, and consult an advisor before making a decision.