How to Trade in a Car That Is on a Lease Agreement

Trading in a car on a lease agreement toward a new or used vehicle is possible if you pay the early termination amount on the lease. For most auto leases, the early termination amount is equivalent to the sum of all remaining payments, plus a lease-end disposition fee. Depending on how many months have passed on your lease agreement, it can be costly to get out of a lease agreement early. If you are unsure of your early termination amount, contact the leasing company listed on your contract.

Instructions

1

Call your finance company or log in to the online customer service tools to get the early termination amount. The amount will be steep if you just entered a lease agreement; you must pay all remaining payments to terminate the lease.

2

Visit local dealerships. Visit local dealerships or contact them on the Internet to discuss the type of vehicle you want to replace your lease agreement vehicle. When speaking with a salesperson, don't feel obliged to inform him that you have remaining lease payments to be paid.

3

Discuss monthly payments. Eventually you will have to discuss monthly payments on your new car when at the dealership. When you find the right car and are ready to discuss the monthly payments necessary to replace your lease agreement car, you should inform the salesperson of the remaining lease payments. They will be able to factor the early termination amount into your monthly payments.

4

Get agreements in writing. If the dealership promises to pay the early termination amount on your lease agreement, get it in writing on the buyer's order that details your transaction. Also have the dealership call your leasing company to verify the payoff amount. This ensures the early termination amount is paid in full.

If you are paying the early termination amount on your own, be sure to contact the leasing company, as a separate mailing address may be used for accounts being paid in full.

5

Check with the lender. Several weeks after you pick up your new vehicle, contact the leasing company through which your lease agreement was arranged to verify that the early termination amount was received.