Is signing up for an early auto loan termination program a good idea?

A dealership near me is running a special where they'll pay off my current car loan if I finance a new car through them. Are there any catches to an early auto loan termination program?

“What will happen is that the dealer will pay off your balance from the lender and roll that amount into a new loan. It won’t just pay off your loan free and clear.
So you’ll essentially be paying for the leftover balance of the old car but with a new lender. Other than that, there are no catches.”
Eric Schad
Answered on May 05, 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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