Can I trade in my Chevy Trailblazer if I still have a loan on it?

I want to trade in my old Chevy Trailblazer for a new one. Can I do this if I still have a loan?

Answer
If you have positive equity (you owe less than your car is worth), just take the car to the dealer. They’ll offer you a trade-in value for the vehicle, write a check to pay off your old loan, and then get you started on a new loan.
However, if you’re upside down on your car loan (you still owe more than the car is worth), the trade-in will be a little more complicated. The dealership will still accept your old car, but you’ll have to deal with your negative equity to get a new loan.
You will have to choose between:
  • Rolling your current debt over into the new loan
  • Paying the balance of your current loan with cash or by other means
If you roll the loan over, be aware that you’ll likely end up paying more in the long run due to accumulating interest. If you’re looking to save extra money while paying off your loan, use Jerry to save money on your car insurance by comparing quotes.
Eric Schad
Answered on Oct 20, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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