How do banks figure the amount they loan for a particular car?

Been looking at purchasing a new car and taking out a loan for it. My question is how do banks figure how much they want to loan.





For example lets say I'm buying a 2001 Infiniti G20. How do they know what its worth? Do they use the bluebook value? If so do they loan the full bluebook value or only a portion of it? If so how much or a portion? Or do i tell them how much I need for the car?|||The bank loans money to people who are able to pay them back with interest. Not so much on any type car You are buying the car and are going to have to have full coverage insurance too. Please don't get a loan on a 9 year old car keep shopping save up and find a cash car. Financing for 24 months 36 months high interest rates a car that may need major repair work soon. The Small 2.0 liter Base entry level infinity was not all that much car to start with. Basically a fancy Sentra. Bank would loan money more likely on a New Sentra, Versa, Rogue. or Altima.|||banks have a version of bluebook that shows average retail value, and average loan value.... when I purchase a car I go to the credit union, secure credit, and find out the loan value of the car.... that is the figure I use as my first offer.....usually it is several thousand below sticker....|||Most banks use the NADA (National Auto Dealers Association) Guide. You can find the national one on line but the banks use ones that are printed especially for their region and updated quarterly.|||Someone already mentioned the book value. How much they loan is dependent on your credit score. No or poor credit history means you won't be able to do a 100% loan with the current conditions.