how does trading in a car which is leased work if you want to lease/buy a cheaper car? can it be done?

 

It can be done but you need to know your current lease payoff and use that number to determine your equity situtation (positive/negative). This will be determined by the current trade in market value of the vehicle.

If you owe more than the trade in then you will have to pay this out of pocket or add it to the lease/loan of the new vehicle.

Make sure you know ALL the numbers BEFORE signing any new deal.