Trading in vehicle for a lease
Here's what happens when you want to trade-in a leased car: Since you don't actually own the vehicle you're not technically trading it, rather the dealer is going to buy it from the lease company. However, for all practical purposes it works out the same. You'll need to get your total payoff from your lease company. A leased car is actually owned by the leasing company. To trade in a lease, the dealer for the new car must pay off the lease termination cost to the leasing company. The dealer will allow the wholesale value of the car as a trade credit and the cost to terminate the lease will be charged against that credit.