Auto Leases

There are many different types of auto leases. Before getting one you should know all you can about them. I hope this helps.

Closed-End Leases

These are the most common type of leases. At the end of the lease, you return the vehicle with no further financial obligations. I highly recommend this lease if you take good care of your vehicles. You may be charged for any issues the vehicle experiences when you turn it in.

Open-End Leases

These leases make the lessee responsible for paying the difference if the residual value estimated upon the signing of the lease is less then the actual market value at the end of hte lease. It is a bit risky.

Single-Payment Leases

A lease like this requires the lessee to make a single lump-sum payment at the time of the lease rather then having multiple payments during the lease.

Manufacturer-Subsidized Leases

This is also called a "subvented lease". Dealerships sometimes need to move vehicles off the lot so you may be able to get an extra low interest rate or higher residual value. A lease like this is a very good bargain.