Considering the risks can help you decide if trading in your car is the right decision right now.įirst, it’s important to understand that taking out another car loan could make it more difficult to afford the payments. There are some risks associated with trading in a car that has a loan. What are the Risks of Trading in a Car with a Loan? But as you might have guessed, the new loan will probably have a much higher balance. If it doesn't, your dealer will roll over your loan, combining the deficit with the amount you owe on your new car.Ĭonsolidating what you owe into a single, new loan helps you manage your payments better. Depending on the remaining loan balance, this credit might cover the remaining amount you owe. When you trade in a financed vehicle, your car’s trade-in value gets applied as a credit towards your next loan. However, your car loan doesn't disappear if you trade in your car. Yes, you can trade in a car you're still paying off. Looking for an auto loan that works for you? Easily compare lenders below.Ĭan I Trade in a Car I'm Still Paying Off? In this guide, we’ll explain everything you need to know about trading in a vehicle that’s still being paid off and answer some frequently asked questions.

Want to trade in your car before the loan is paid off? It’s possible, but there are a few things you should consider before you take this option.

One main financial change due date