---
id: department-0025
title: "What happens to my car loan when I trade in my vehicle?"
category: department
subtopic: trade-in
page_type: department
source_url: "https://www.boballenmotormall.com"
tags: ["trade-in", "financing", "payoff"]
questions:
  - "Do I have to pay off my car loan before trading in?"
  - "What if I still owe money on my trade-in?"
  - "How does a trade-in work when there's a loan balance?"
  - "Can I trade in a car I'm financing?"
related: [finance-overview, trade-in-value]
dealer: Bob Allen Motor Mall
---

Great question! You can absolutely trade in a vehicle even if you still have an outstanding loan. Here's how it works: Bob Allen will evaluate your car's value, and we'll handle coordinating with your current lender to pay off the remaining balance using your trade-in equity. If your car's value exceeds what you owe, that difference can reduce the price of your next vehicle or lower your financing amount. If you owe more than the car is worth, that "negative equity" can sometimes be rolled into your new loan-though our finance team will walk you through all options and what makes sense for your situation.

The process is straightforward and happens behind the scenes; you don't need to worry about multiple payments or paperwork headaches.

**Next step:** Call us at (877) 331-4442 or visit https://www.boballenmotormall.com to discuss your trade-in and get a clear picture of your equity and financing options.