What Is An Open End Lease
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What Is An Open End Lease
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Web Open end leases are a popular option because of their flexibility but closed end leases can be a better choice for fleets that have low mileages and want predictable payments Closed end leases set fixed terms mileage allowances and return dates before the vehicles are put into service ;When considering a lease, check the lease documents to see if the lease you’re being offered is an open- or closed-end lease. Closed-end leases can provide some predictability regarding how much you’ll pay to use the car over the term of the lease, assuming you stick to the mileage limit and the car remains in good condition.
What Is An Open End Lease;An open-end lease, often termed a “finance lease,” mandates lessees to make a substantial balloon payment at the lease’s conclusion, compensating for the variance between an asset’s residual and fair market value. Web Dec 29 2021 nbsp 0183 32 Definition and Example of an Open End Lease An open end lease is a contractual agreement between a lessor owner and a lessee renter in which the final payment is based on the difference between the residual projected value of the property leased and its realized actual value