GT500 Prices vs Bank Valuation

[musclefan21]

There is world of difference between the two. How come banks still value the so low if these guys sell them for what they are being advertised for? In my case, a 14 GT500 w/ 5k miles is listed for 65k, bank said max value for that car is 42k and they wouldn’t loan any more of it. I fully understand them not wanting to lend more than a car is worth, but if they are all selling much more than that which they are, how come banks don’t adjust to that?

School me please

 

[7998]

Banks deal in reality, not trends. If they're not willing to loan you the money on something take that as a sign. Or put more money down.

 

[apex svt]

Not up to snuff on GT500 values. But, check with another lender.

I went through this with my boat, most banks, nor NADA know exactly what these things are. High performance world can be very specific.

 

[apex svt]

X2

 

[apex svt]

X3… No idea how that happened.

 

[sonicx]

Banks deal in reality, not trends. If they're not willing to loan you the money on something take that as a sign. Or put more money down.

Agree with this lots of banks are embedding a potential 15% to 20% cumulative decline in used-auto values by the end of 2023 into its assumptions when dealing with auto loans currently. As @7998 said, banks look at hard facts and historic averages not trends due to supply chain issues. Cox Automotive has forecast that the Manheim index of used-car prices will be a mere 3% lower by this December than it was in December 2021.

 

[2011 gtcs]

I just did a quick KBB value to see, my 14 GT500 with 13k on it and KBB says 47k, I'm assuming that's what most banks go off of. I paid 55k for mine back in 2018 with 6,500 miles on it and the bank gave a 53k loan on it.

 

[Blk04L]

Yea, I'm seeing a lot of Gen 2 Lightnings in the 30's but I doubt any bank or CU would come close to that price, so the amount of potential buyers drop to the guys who would have to pony up a lot of cash with a small loan or all cash buy.

 

[SHOdown220]

The used car market is artificially high right now, hell when I worked at ford in 2018 we had a low mileage (I don't remember exactly what it was but I think upper teens) 2014 GT500 Vert listed for $43k that sat for months before selling. Anyways, if the market plummets, and at some point I feel like it will, the banks are going to be in a world of hurt if people start defaulting on their notes.

Lately cars have been selling for WAY more than they are actually worth, and it will not stay that way, the banks are probably taking that into account. If they were to loan say $65k for that shelby and then next year its worth something more like 40k at auction, and you stop making payments they are out 20 grand,.

 

[WVTrakPak]

There is a bank somewhere that will loan it. Most require 25% down but if the credit is right it should work. I find it somewhat offensive that bank will decide what I should pay for something. How is it reasonable that 65k on a new GT vert is ok, but on a GT500 it is not. Credit should not be based on collateral but on the borrower.

 

[SHOdown220]

There is a bank somewhere that will loan it. Most require 25% down but if the credit is right it should work. I find it somewhat offensive that bank will decide what I should pay for something. How is it reasonable that 65k on a new GT vert is ok, but on a GT500 it is not. Credit should not be based on collateral but on the borrower.

It's all about risk to the bank. They don't decide what you should pay for something, just about how much they are willing to give based on risk and value. Why would they give out 65 grand for a car worth 45? Say the buyer never makes a payment, they have to pay someone to repo the car, then sell it at auction and get 45k, they are down over 20K and have to ask the buyer to pay them the difference and the buyer doesn't even have the car anymore. Lose-lose situation. They don't make up the values on the car either, they typically use NADA, KBB, or other car value companies to come up with that number. In the case of the OP's GT500 NADA says $39.9k in my zip code. Ouch.

 

[13COBRA]

I guarantee, without a doubt, that I can get you a loan for the full amount on that car.


Credit permitting.

 

[musclefan21]

I guarantee, without a doubt, that I can get you a loan for the full amount on that car.


Credit permitting.

My credit sits in 790s.

Not necessarily for that car, that was just an example, but I would like to get a GT500 without making 15k down payment. Two of my credit unions offered me 41-42k max.

 

[13COBRA]

My credit sits in 790s.

Not necessarily for that car, that was just an example, but I would like to get a GT500 without making 15k down payment. Two of my credit unions offered me 41-42k max.

They're crazy. I could get you the loan.

 

[WVTrakPak]

It's all about risk to the bank. They don't decide what you should pay for something, just about how much they are willing to give based on risk and value. Why would they give out 65 grand for a car worth 45? Say the buyer never makes a payment, they have to pay someone to repo the car, then sell it at auction and get 45k, they are down over 20K and have to ask the buyer to pay them the difference and the buyer doesn't even have the car anymore. Lose-lose situation. They don't make up the values on the car either, they typically use NADA, KBB, or other car value companies to come up with that number. In the case of the OP's GT500 NADA says $39.9k in my zip code. Ouch.

For a lot of banks, the risk is with the borrower not the collateral. If you have good enough credit, you can find a bank to do it. Heck, everyone should have a banker who knows you and helps with your addictions......

 

[WVTrakPak]

I guarantee, without a doubt, that I can get you a loan for the full amount on that car.


Credit permitting.

THIS RIGHT HERE!!!

 

[1 Alibi 2]

A GT500 is just a car to the bank.
The seller may list it @ 65K, but the buyer ( bank loan ), sees it @ 42K.
It's the old " a car is worth what a buyer is willing to pay " thing !!
.

 

[robvas]

I guarantee, without a doubt, that I can get you a loan for the full amount on that car.


Credit permitting.

What's the catch? Interest rate etc?

 

[SolarYellow]

I wonder of a bank would require a higher score when buying a used vehicle like the one in question and a lower score for a newer vehicle.