PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What happens to my car loan if I trade in my vehicle?
I want to finance a new car, but I still have a balance on my old loan. I have positive equity on the loan. So what can I do?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congrats on your soon-to-be new car! As far as your old
car loan
goes, don’t stress out. Since you have positive equity, the trade-in process should go smoothly.When you have a car loan on a vehicle that you want to trade in, here’s what the dealer will do:
- Assess the trade-in value of the vehicle and take it
- Pay off your old loan
- Give you the difference between the trade-in value and the loan balance (if applicable)
Since you owe less than the vehicle’s worth, you can expect to receive a nice check from the dealer. Use that money for a down payment on the new loan—or take yourself on a nice trip. (We won’t judge.)
Just remember that insurance usually follows the car, not the person, so you’ll likely have to adjust your policy when you get the new car.
Jerry
can help you compare competitive quotes from up to 50 top providers to find the best rates available.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
