Yes, but you'll want to verify that the trade-in value is enough to pay off the car loan. Otherwise, the balance will roll into the next auto loan and you'll owe more than the car is worth. We recommend getting an actual offer on your car from Edmunds to check if its value will be enough to cover your loan balance. In some cases, you might even have some equity in the car, at which point the money is yours to keep. Learn more