Can I transfer my current loan to a different car?

I have a car loan on a Honda Civic, but I'm looking to upgrade to a newer model. Can I transfer the loan on my current car to the new one?

Answer
The new Honda Civics are looking pretty posh, so that’s an awesome upgrade!
You can’t transfer your car loan to a new car per se, but you can roll it over into a new loan.
For example, if your balance on your old car loan is $3,500 after you trade your vehicle in, you can add that to your new car loan in a process known as a rollover. This will add the $3,500 balance to your new loan. So if the new Civic is $25,000, your loan balance would be $28,500.
Keep in mind, rollovers are always at the discretion of the lender, and approval is based on your credit score and income.
Alternatively, you can probably make more cash selling your car privately. This will help you pay down the original loan balance more, or it can pay it off entirely. Always weigh the difference between trade-ins and selling privately to see what is the better option.
When you get the new car, you can transfer the car insurance from one vehicle to the other. That’s when Jerry can lend a helping hand. As a full-service car insurance broker, Jerry allows you to compare rates, then switches over the policy and helps to cancel the old one. It doesn’t get much easier than that.
Eric Schad
Answered on Nov 22, 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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