AUTOMOBILE

What’s the Difference Between Open-End and Closed-End Car Leases? – MotorBiscuit

If you’re planning to buy a new car, then leasing is a good way to do it. With leasing, you’ll get to drive the car for a few years while benefitting from low monthly payments in addition to having little to no money down. But what you might not know is that there are different types of leases: open- and closed-end. But what’s the difference between these two types of leasing and which one is right for you?

How does a closed-end lease work?

Car sales at a dealership | Getty Images

If you lease any car from any manufacturer, chances are that it will be a closed-end lease. Simply put, a closed-end lease is one where the lease terms and mileage allotments are set when you sign the contract. Most new car leases are 36 to 48-months long and allow the lessee to drive the car up to 10,000, 12,000, or 15,000 miles per year. Although, longer terms are possible.


Source link

Back to top button