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Home > Vehicle Leasing > Types of Leases

Types of Leases

We offer two types of leases for vehicles:

Open End Lease

An open-end lease is a lease agreement in which the amount you owe at the end of the lease term is based on the difference between the residual value of the leased vehicle and it's realized value. Your lease agreement may provide for a refund of any excess if the realized value is greater than the residual value and vice versa.

• Residual is set at lease inception
• Lessee participates in gain or loss; it’s a financing arrangement
• Residual is based on many factors including: mileage, specifications, location and current market
• Lessee can be given the option to buy at lease end
• No wear & tear fees

Closed End Lease

A closed-end lease does not contain a purchase or renewal option, thereby requiring the lessee to return the vehicle to the lessor at the end of the initial lease term. Also refers to a vehicle lease in which the lessor absorbs the entire risk of the residual.

• You only pay for the portion of the vehicle you actually use
• Mileage restrictions
• Vehicle MUST be returned in good condition
• Lessee bears no responsibility for residual value

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