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Can I transfer a loan from one car to another?

I'm buying a new car and trading the vehicle in, but I haven't paid off the loan on my old car. Can I transfer the loan from one car to another?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
That’s a great question! While you can’t necessarily transfer a
car loan
, you can roll the old balance of the loan into the new one. This is common practice in the industry, and it shouldn’t pose a problem provided that this added amount doesn’t go above your lender’s loan-to-value ratio on your loan.
However, you should also consider how much you’re rolling over into the new loan. If the balance is too high, you’ll get into an
upside down car loan
that can create financial issues. In this case, you may consider paying off your first loan before you purchase a new car.
Before you purchase the new car, you should shop car insurance rates to save more money. One easy way to do this is through the
Jerry
app—we’ll get you personalized quotes from top providers in seconds, so all you need to do is choose the plan that works best for you. (And once you choose, we’ll even help you switch!)
Congrats on the new ride, and best of luck with the loan!
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