Open End Leases

Although this type allows for a smaller monthly payment, it does so because you are taking extra risks at the end of the lease-the risk of value decline of the vehicle. For this type of lease, you set the value at the beginning of the term, but, unlike the closed end lease, you pay extra if the car is worth less at the end than the price you set at the beginning. Conversely, if it is worth more, you would get a rebate. This lease type can be a disaster if the residual value of a car model drops due to changes in demand, or manufacturers' defects.

Please contact Topolinski & Associates regarding more information on this topic.