PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
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
How do I trade my car when I still owe on it?
I still owe $2,000 on my car loan, but I'd like to get a new car. Can I trade my car in even if I still owe money on it?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes, you can trade in your car even if you still owe money on it! It is a common practice, so you shouldn’t have any issues when doing so.
Shop around at multiple dealerships to get an idea of which is offering the best rate and trade-in value for your car. Ideally, a dealership should offer you $2,000 or more. So if you only owe that much, your loan will be paid off!
If the trade-in value is less than the remaining balance on your
car loan
, whatever you owe on your loan will be rolled into your new loan.So when you sign your terms with your new lender and the dealership, they’ll agree to pay off your current loan and then add the remaining balance to your new loan. While this isn’t an ideal situation, in some cases, you may end up with a better rate than you previously had!
Once you trade in your car and get a new one, be sure you have the proper insurance coverage. Just like with your car, shop around with
car insurance companies
to find the best rate. If you’d like help, the Jerry
app is a great place to start. Jerry finds personalized quotes from top insurance providers in seconds!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