Trading in your current vehicle towards another can partially offset the cost of the new vehicle. The trade-in’s net value goes towards the purchase or lease of a new car. Conditions of a trade-in vary depending on who owns the vehicle.

If you own the vehicle, trading-in means that you’re selling the car to the dealer for some determined price. As a result, the price of the new car goes down, only.

If you are leasing a vehicle and do not own it, trading-in means that the seller of the new car agrees to pay the outstanding costs associated with the lease. Depending on the financing of the new vehicle and the outstanding balance on the old one, trading-in can either raise or lower the new car’s price.