Yes, you can often trade your lease in early for another car, but it's rarely a simple, cost-neutral process. The most common path is through a lease buyout, where you or the new car dealership purchase the vehicle from the leasing company for its predetermined payoff amount (also called the buyout price). Whether this makes financial sense hinges on your car's current market value versus that payoff amount.
If your vehicle's market value is higher than the payoff quote, you have positive equity. In this case, the dealership can buy the lease out, and the equity can be applied as a down payment toward your next car, similar to trading in a car you own. However, many leased cars are in negative equity situations early in the term, meaning you owe more than the car is worth. Covering this difference out-of-pocket is usually required to proceed.
Some manufacturers offer lease loyalty programs that provide incentives or waive certain early termination fees if you lease or purchase another vehicle from the same brand. It’s critical to read your lease agreement carefully and contact the leasing company for an exact payoff quote as your first step.
The table below outlines three common scenarios to illustrate the potential financial outcomes.
| Scenario | Vehicle Payoff Amount | Current Market Value | Financial Outcome | Next Step Viability |
|---|
| Strong Market Demand | $25,000 | $28,500 | +$3,500 Equity | High: Equity acts as down payment. |
| Stable Market | $25,000 | $25,000 | Break-Even | Moderate: No cash needed, but no gain. |
| Early in Lease Term | $25,000 | $22,000 | -$3,000 Negative Equity | Low: Requires $3,000 cash to cover difference. |
