Usually you have the option of taking an open-end or closed-end lease. What’s the difference? Let’s find out.
Open-end Leases
With an open-end or equity lease, you have to purchase the vehicle when the leasing term ends for an amount that is predetermined when you sign the leasing contract. If you need a high mileage or business lease, this is probably the lease that will fit your needs.
Closed-end Lease
When you choose a close-end lease, you return the vehicle to the dealership when the leasing term expires. If you owe for wear and tear, damage or mileage, this is when you pay that amount. Consumer and financial experts agree that in most cases, a close-end lease is the most beneficial to the leaser. Why? Because it puts you at less risk when the term of the lease expires.
The Big Decision
Now that you are well aware of all the options for buying and leasing a vehicle, it’s time to make the big decision. The decision should be based on individual needs and personal preferences. If, in the future you’d like to see an end to monthly vehicle payments, your only option is to buy. If you want to eventually own the vehicle, the option is the same. On the other hand, if you’d like to own a sparkling new car every few years and keep expenses to a minimum, taking out a closed-end lease is an excellent choice. It’s all about what’s best for you.