There are a variety of ways to trade in a vehicle and get a different one, regardless of whether you own the vehicle outright, carry a loan or hold a lease. There are different financial ramifications for each option. When you trade in a leased car, consult your lease agreement for clauses governing trade-ins. Trading a vehicle for a new car lease has a much greater effect on monthly payments than when trading for a financed purchase. If you still owe money on your trade vehicle, the deal can be more complicated and possibly not in your favor. If your trade vehicle has great value, it may pay for most or all of your lease. When you buy a new car, you have to pay the entire price of the vehicle using cash, a car loan, the proceeds of a trade-in, or a combination of all three. When you lease a car, you only have to pay for the difference between the vehicle’s price and its expected value at the end of the lease, plus interest and fees.