Yes, you can trade in a leased car early for another lease, but it often involves paying an early termination fee and other costs, which might make it less economical than waiting until the lease term ends. The process requires contacting your leasing company to discuss your lease agreement's specific terms, such as the buyout price (the amount to purchase the vehicle outright) and any penalties for early termination. It's not a simple swap; you'll need to evaluate if the financial impact aligns with your goals.
First, review your lease contract for clauses on early termination. Most leases include an early termination fee, which can be a flat rate or based on remaining payments. Additionally, you might face a disposition fee for not returning the car at lease end. To trade it in, the dealership will appraise your leased car's current value versus the buyout price. If the appraisal is higher, you could have equity to put toward a new lease; if lower, you'll cover the difference out-of-pocket.
Industry data shows that early termination costs vary widely by manufacturer and lease terms. For example, a 2023 report from Automotive Lease Guide indicates that fees can range from a few hundred to several thousand dollars, depending on factors like the vehicle's residual value and how early you terminate.
| Car Manufacturer | Average Early Termination Fee | Typical Conditions |
|---|
| Toyota Financial | $400 | Based on 50% of remaining payments |
| Honda Financial | $350 | Flat fee plus unpaid payments |
| Ford Credit | $500 | Varies by model and lease term |
| BMW Financial | $750 | Higher for luxury models |
| Hyundai Capital | $300 | Often waived with new lease purchase |
Before proceeding, calculate all costs: early termination fee, any remaining payments, taxes, and the new lease's down payment. Alternatives like a lease transfer (where someone else takes over your lease) might be cheaper. Always get quotes from multiple dealerships and compare with holding the lease to maturity. If the numbers work, trading early can upgrade your vehicle sooner, but it's crucial to crunch the numbers objectively.
