u/lofa00

This might be a stupid question, but I’ve never sold a car that wasn’t paid off.

I have a current offer from Carvana worth more than the value of my car, but am looking to purchase a Kia through a dealer as I want the warranty through Kia.

My question is, once I sell the car to carvana, how is my loan treated if head straight to the dealer to purchase?

Would carvana hand me a check for the value, and then I technically roll over the entire value of my loan into the new one with the check as the down payment? Does this affect my interest rates or approval chances since it’s now a larger loan?