Loan to value rate on used car.?

Can anyone tell me if it is a normal practice for credit unions to approves auto loan for much higher than value of car. Example loan given for 3600 dollars and car kbb value was 1600 dollars and on top of that consumer was required to pay a fee to join credit union.|||A universal requirement for obtaining a Credit Union loan is membership (being an account/"share" holder). While there are usually no fees for opening an account (or becoming a "member"), They may have fees associated with obtaining a loan, but that would be very unusual. One of the basic principles and characteristics of Credit Unions is that they are owned and operated by and for the benefit of its members/owners.





While Credit Unions usually waive certain arbitrary requirements and fees that many other banks impose, any lender is going to maintain reasonable loan-to-equity ratios for the loans they make. Just how much equity each requires, or how much beyond any established guidelines they're willing to lend is highly dependent upon the a number of factors that include the credit union's own practices and policies, the applicant's credit history, and the borrower's assets, employment history and established earning potential which determine the likelihood of the borrower's ability to repay.





In this economy, many credit unions won't extend loans that exceed the highest "blue book" resale value by more than 20%; and in the case of higher-value vehicles that depreciate more quickly, they're likely to impose even greater limits. As these are entirely dependent upon the credit union, the vehicle you want to buy, and most importantly, your credit and income history, there may not be any "fixed" answer without first plugging-in all the variables and asking.





Best of luck. I hope this helps.|||Credit Unions require you to open up a savings account and be a member if you want a loan from them. Any lender will not let you pay an exorbitant amount for a car because it hinders your ability to pay back the higher loan amount. Check with any Credit Union for more specifics.