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Can you trade in a car with a title loan?
My car is just short of hitting 150,000 miles, and I want to trade it in for a new vehicle before its value decreases more. However, I used it to get a title loan not long ago. Can you still trade in a car with a title loan on it?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Trading in your vehicle while it’s still valuable can make the car-buying process that much easier, and most dealerships will let you trade in a car with a title loan.
If you
trade in a car with a loan
, the dealership will pay off the remaining balance, but it’s not always in your best interest.If your loan balance exceeds the value of your vehicle, you have negative equity, also known as an
upside-down car loan
. If you have negative equity, trade-in options include:- Roll the negative equity of your old loan to your new car loan, although your monthly payments may increase.
- Pay the difference between the loan balance and vehicle’s value and decrease the monthly payments.
- Postpone trading in the vehicle until the title loan is completely paid off.
If the value of your car exceeds the remaining balance of your loan, you have positive equity in the vehicle and should not hesitate to trade it in. You can apply the surplus balance to your new purchase as a down payment and lower the monthly payments of your new
car loan
. Once you have a new vehicle in your sights, find a
car insurance
policy that gives you the protection and peace of mind you need.If you want to leave the hard work of gathering quotes and purchasing a new policy to someone else, use
Jerry
. The Jerry app can collect quotes from over 50 top insurance companies like Travelers, Nationwide, and Progressive. If you ever have any questions, agents are just a text away. They can even cancel your old policy!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.
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