How Can I Add the Balance of My Old Car Loan to My New Car Loan?

You can elect to transfer your existing car loan balance to your new car loan. When this occurs, your new lender simply extends a larger loan than you need to purchase the new car. You can pay off your old loan with the outstanding balance, and you will then begin payments to the new lender. This process often happens without you even having to touch the money, making the process of adding the balance of your old car loan to your new car loan fairly straightforward.

Instructions

1

Ask for a payoff quote on your existing loan. Often, your payoff quote will be slightly larger than your remaining principal debt due to interest charges. Your lender will be able to tell you exactly what it will cost to repay the loan today considering these fees.

2

Get a trade in estimate on your car. If the sales price of your current car will repay the balance on your old debt, you do not have to worry about the outstanding loan balance. If the sales revenue is only enough to cover part of the debt, you will need to rollover a portion of the balance onto your new loan. You must good credit and a verified income source in order to qualify for new debt.

3

Get pre-approved for a new loan. The size of your new loan must be large enough to cover the cost of your new car and payoff your old debt. It is wise to get pre-approved so you know how much you will have left over, after paying your old debt, in order to purchase a new vehicle.

4

Shop for a car. Stay within your budget in order to give yourself the best options to pay off your debts in the future.

5

Arrange to close your old loan with your new loan. Typically, this can all occur on site at the car dealer. Most car dealers offer a financing arm, and you will be able to take a loan for your new car. You can offer your trade in to reduce the sales price of the new car. Then, tell your dealer you have an outstanding loan balance. The dealer will pay your old lender directly out of funds from your new loan. You will be able to trade in your car, pay off your old balance and finance your new car fairly easily.