Can I transfer my car loan from an older car to a new one?

I'm trying to buy a new car, but I still have a loan out on my old one. Is there any way to transfer the remaining balance to the new car?

Answer
While you can’t transfer a car loan from one car to another, you can roll over the old loan balance into a new car loan. This type of loan is known as a rollover and is common with car dealerships.
When you trade in your old car, the dealer or lender will normally pay off the remaining balance of your old loan by deducting it from your car’s trade-in value. If the trade-in value is higher than the remaining balance, you’ll receive a check for the difference.
With a rollover loan, though, the dealer or lender will take the remaining balance and roll it over into a new loan when you get your new car. While you’ll pay more in the long run due to added interest, you’ll still be able to get the new car you want without a hassle.
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Eric Schad
Answered on Oct 26, 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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