Can You Trade In A Car You Still Owe Money On?

Written By: Jerry Reynolds | Jul 30, 2026, 10:18:13 PM

Car Pro Show host Jerry Reynolds:: Can You Trade In A Car You Still Owe Money On?

0:59

Q: Can You Trade In a Car You Still Owe Money On?

The answer is yes, but know before you go to a dealership where you stand. You could have positive OR negative equity. Negative equity amounts have to be dealt with by using rebates, your own cash or rolling it into the new loan. Either way, it affects the bottom line loan amount. Negative equity gets added to the loan, positive equity is subtracted. Know your payoff and approximate value before you shop.

For more on what to expect in the dealership finance office, click here →

Photo: Billion Photos/Shutterstock.com.

Jerry Reynolds

From police officer to top-selling Ford dealer to on-air car expert, Jerry helms our weekly radio show. Since selling his dealerships in 2006, Jerry has pursued his top three passions: helping consumers have a great car buying experience, supporting the military and first responders, being a loyal servant to his dog! While Jerry admits to hitting the pedal to the metal on test drives, it's all the service of finding out just how fast he can go from 0 to 60.

You may also like:

Jerry Reynolds

Save up to 60% on Vehicle Protection

CarPro Newsletter