At Advanced Trucks, when it comes to upgrading your truck, adding a lift, new tires, and wheels is among the most impactful modifications you can make. Not only do these upgrades enhance the aesthetics of your vehicle, they also significantly improve performance and functionality. What’s more, incorporating the cost of these enhancements into your vehicle loan can make the process more financially manageable! Don’t pay the thousands and thousands of dollars out of pocket for all the modifications you want to make to your truck after you have purchased it from the Dealer.  Buy from a Dealer like Advanced Trucks who can include all those upgrade expenses within the vehicle's purchase price! Here at Advanced Trucks, we can add most any upgrade you would like and can get your truck looking exactly how you want.  Check out this link for upgrades we do in house on a daily basis. Furthermore, here’s a closer look at the benefits of these upgrades and how including them in your loan can be advantageous.

Financial Benefits of Including Upgrades in Your Loan

While the benefits of lifting your truck and adding new tires and wheels are clear, the cost can be substantial. Including these upgrades in your vehicle loan can spread the expense over the term of the loan, making it more affordable. Instead of paying a large sum upfront, you can manage smaller, more manageable monthly payments.

Incorporating these costs into your loan can also be financially strategic if your loan has a low interest rate. This approach allows you to take advantage of the lower rates typically associated with vehicle loans compared to personal loans or credit cards. Furthermore, the immediate increase in the truck’s capabilities and aesthetics can provide you with the benefits of the upgrades without the delay of saving up for them separately.

Understanding Vehicle Loan-to-Value Ratios and Lending Practices

When purchasing a vehicle, lenders often use the Loan-to-Value (LTV) ratio to assess the loan amount relative to the vehicle's value. Some lenders are willing to lend up to 150% or more of the vehicle's value. This means they provide financing that exceeds the vehicle's worth, potentially covering additional costs like taxes, fees, or warranties.

The LTV ratio, combined with the customer's credit rating, helps lenders evaluate the risk associated with the loan. A higher LTV ratio may indicate higher risk, potentially resulting in a higher interest rate for the borrower. Conversely, a lower LTV ratio might lead to more favorable interest rates, reflecting lower risk for the lender.