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How much of a balance can you roll over into a new car loan?

"How much of a balance can you roll over from an old car loan into a new car loan? I have negative equity in my current car loan, but I also want to finance a new vehicle."

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“There’s no limit to how much balance you can roll over into a new car loan. However, as a general rule, you shouldn’t exceed more than 125% of the value of your car in a loan.
Even at 125%, you’re going to be
upside down
on the loan for almost the entire duration of the term.
In this case, you may want to pay down more of your current loan before you decide to roll it over into a new one. Or if you can, consider paying a larger
down payment
.”
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