What is a loan-to-value ratio on a car loan?

Loan-to-value (LTV) compares the amount you borrow to the vehicle's value. Borrowing more than the car is worth, for example by rolling in taxes, add-ons or negative equity, produces a high LTV, which some lenders limit or price with a higher rate. A larger down payment lowers LTV, can improve approval odds and reduces the chance of being upside down. Lenders set their own LTV limits.