Why did the balance go up on my car loan?

I just got my car loan statement after I traded in my old car, and I noticed the total balance went up. Why would this happen?

Answer
Your car loan balance went up? That’s not supposed to happen! But don’t fear; we’ll get to the bottom of this.
In all likelihood, the reason your new car loan balance went up is because you rolled the old car loan into it.
When you trade a car in that still has a balance, any remaining balance gets rolled into the new loan. So, it’s likely you became upside down on your initial loan, which means your car was worth less than what you owed on the original loan. Thus, you’ll see an increase in the balance with the trade-in.
To offset this increase, you can save money by shopping around for car insurance. With the Jerry app, you can compare prices from over 50 top providers to make sure you get the best price for the coverage you want.
Eric Schad
Answered on Nov 11, 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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