It depends. Technically, a leased car can be traded just like a purchased car. However, since a lease balance is paid down much slower than a loan — because payments are much smaller — it’s common to have no trade equity at any time during the lease. If the lease balance (“buyout”) is more than the trade value of the vehicle, the lease is “upside down.” Trading might still be feasible, however. See Trade Leased Car for more details.

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