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's the catch on an early loan termination policy?
A car dealer in my town is running a special called an "early loan termination policy" that promises to pay for my current car loan, even if I'm upside-down, if I finance a car from them. It sounds too good to be true. What's the catch?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The dealer will pay off your loan for certain. But the amount you still owe will just be rolled over into the loan for the new car.
However, if you can get a lower interest rate on the new loan, it might not be that bad of a deal. Ask about their financing and seek pre-approval to see how much APR they’re going to charge.”
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
