I'm thinking about trading in my car but I'm still making monthly payments on it. Can I trade it in before the loan is paid off? What happens to the remaining balance, does it roll over to the new loan?
Yes, you can trade in a financed car even if you're still making monthly payments. The dealership pays off your remaining loan balance directly with your lender. Just know your payoff amount beforehand so you understand whether you have positive or negative equity going into the deal.
For example, if your car's trade-in value is $12,000 and your remaining loan balance is $9,000, you have $3,000 in positive equity which goes toward your new car. But if you owe $12,000 and the car is only worth $9,000, that $3,000 negative equity rolls into your new loan.