Yes, you can switch cars during a lease, but it's not a simple, straightforward process. The most common and often easiest method is through a lease transfer or lease assumption, where another qualified person takes over your remaining lease payments. Other options include negotiating a trade-in with the dealership or buying out the lease early, but these can be costly.
The primary challenge is that a lease is a fixed-term contract with a financial institution. You're obligated to make all payments until the term ends. Any early exit strategy involves fulfilling that financial obligation, one way or another.
Lease Transfer/Assumption
This is often the best path if you simply want out of your current car. You find someone willing to take over the lease. The leasing company must approve the new lessee's credit. Services like Swapalease or LeaseTrader facilitate these transfers. Be aware that many lenders charge a lease transfer fee (typically $200-$600), and you might remain as a co-signer on the agreement, which could impact your credit if the new lessee defaults.
Trading In the Leased Vehicle
You can take the car to a dealership (the same brand or a different one) and use it as a trade-in toward a new purchase or lease. The dealership will appraise the car's current value. If the trade-in value is higher than your lease payoff amount (the remaining payments plus the predetermined purchase price, or residual value), you have positive equity and can apply it to the new deal. However, if the trade-in value is lower—which is common due to depreciation—you have negative equity and must pay the difference out-of-pocket.
Buying Out the Lease Early
You can contact the leasing company, get the official buyout quote, and purchase the car outright. Once you own it, you are free to sell it or trade it in. This option requires having the cash or a loan for the full buyout amount, which is often higher than the car's market value.
Early Termination
This is the most expensive option. You return the car early and pay all remaining payments plus often a hefty early termination fee. This should only be considered as a last resort.
| Consideration | Lease Transfer | Trade-In | Early Buyout | Early Termination |
|---|
| Typical Cost | Transfer fee ($200-$600) | Paying negative equity | Full buyout amount + taxes | All remaining payments + fee |
| Credit Impact | Potential liability if co-signer | None if negative equity is paid | None | Negative if unpaid fees occur |
| Best For | Getting out of a lease cleanly | Moving to a new vehicle | Wanting to own/sell the car | No other options available |
| Complexity | Moderate (requires finding a buyer) | Varies (dealer handles appraisal) | Simple (but requires financing) | Simple (but very costly) |
Before deciding, get a payoff quote from your leasing company and check your car's current market value on sites like Kelley Blue Book. This will show you if you're in a positive or negative equity situation, guiding your next step.
