All BMW Financial Services leases are closed-end. This is a lease in which you are not responsible for the difference if the actual value of the vehicle at the scheduled end of the lease is less than the residual value. You may, however, be responsible for excess wear and excess mileage charges if they apply.
Lease structure in which the lessor assumes all of the residual value responsibility. In plain English; the lessee does not have to worry about the vehicle being sold at lease end for its predetermined value. This is the opposite of an Open-End lease.
a lease that establishes residual value of the leased vehicle and any future fees at the beginning of the lease term
Type of lease wherein, at the end of the lease term, the lessor is responsible for the value of the vehicle.
Most common type of consumer lease. Lessee is responsible for satisfactorily maintaining the vehicle during the lease term. Lessee may exercise a purchase option if it is written in the agreement. Also called a Walk-Away Lease or a Non-Participating Lease.
A lease under which the lessee is not expected or required to exercise an option to purchase the leased equipment. These leases are most often found in automobile leases from dealers and manufacturers. At the end of the lease the vehicle may be returned subject to mileage and condition-of-vehicle restrictions.
A lease where the consumer is not liable for any changes in the vehicle's projected (residual) value at the end of the lease. The consumer is, however, liable for excessive wear and mileage. (See Open-End Lease.)
A lease where the car is turned in at the end of a lease. The lessee has no option to buy the vehicle out. At the beginning of the lease the lessor sets a predetermined value for the car at lease-end (called the residual value). The lessee is then responsible for any decline in the car's value at lease-end. Consequently if the lessee goes over the mileage limit he/ she can pay a penalty of up to $0.10 per kilometer for which the limit is exceeded. Additionally, the lessee is responsible for any damage to the car that is "beyond reasonable wear and tear".
Type of lease that allows a car owner to return their vehicle to pay specific fees at the conclusion of their lease. This type of lease is considered more high-risk by lenders. Therefore the cost is typically more expensive than a regular lease.
The most common type of car lease. The lessee may return the car at the end of the lease term, pay any end-of-lease costs, such as the disposition fee, and the lease agreement is over. In a closed-end lease, the lender assumes the risk of predicting the value of the vehicle (its residual value) at the end of the lease's term. Closed-end lease payments are somewhat higher than open-end lease payments.
In this type of lease, the person leasing the car is responsible for the value of the car at the end of the leasing period. So, if at the end of your lease, your vehicle is not in great condition, it is your responsibility to get the vehicle in great condition.
A lease in which you are not responsible for the difference if the actual value of the vehicle at the scheduled end of the lease is less than the residual value, assuming you have stayed within the mileage and wear limits stated in your lease agreement. However, you are responsible for other lease requirements.
A type of lease in which the lessee has the right to return the vehicle at the end of lease without further obligation and regardless of any difference between the residual value and the realized value at the end of the lease. Closed-end leases typically have limits on the amount of mileage permitted and specify a per kilometer fee if the lessee exceeds the allowable mileage. Most manufacturers offer closed-end leases on their own products.
The common type of car lease, in which the lender sets the end-of-lease (residual) value of a leased car. It lets the people leasing cars be certain of what they will face at the end of the lease.
A type of lease in which the lessee is not responsible for the value of the vehicle at the end of the lease. The lessee is liable for excess mileage and excessive wear and use. This is also called a guaranteed trade-in, net lease, or walk-away lease.
The lessee is required to return the vehicle at the end of the lease term and pay any contratual fees. Thus the agreement is terminated and t he residual value of the car is the lendorr's reponsibility. This is t he most common type of car lease.
A lease wherein the lessee is not responsible for the market value of a vehicle when the lease is completed. Under this lease, the lessee may return the vehicle at the end of the term and have no further obligation for the car. Also known as a Walk-Away Lease.
A lease where the consumer is not liable for the vehicle's projected value (at lease's inception) and its actual value (at lease's end). The consumer is, however, liable for excessive wear and mileage. (See Open-End Lease.)
A lease in which you are not responsible for the difference if the actual value of the vehicle at the scheduled end of the lease is less than the residual value, but you may be responsible for excess wear and excess mileage charges and for other lease requirements. Distinguish from Open-end lease.
A lease that doesn’t require the consumer to buy the vehicle at lease end or to pay any difference between the residual value and market value Read more
A lease in which the customer returns the car at the end of the lease term without owing any additional funds, unless the car has been damaged or traveled excessive mileage.
A lease agreement that establishes a non-negotiable residual value for the leased auto and fee amounts due at the end of the lease term.
A lease which allows the lessee to return the vehicle at the end of the lease term with no additional liability for the shortfall between the actual value of the vehicle at lease end and the projected residual value stated in the lease. In a closed-end lease, the lessor essentially guarantees the future value of the vehicle. The lessee under a closed-end lease is still responsible for the cost of excessive wear and mileage.
A Lessee in which the lease agreement does not contain a purchase or renewal option, thereby requiring the Lessee to return the equipment to the Lessor at the end of the initial lease term.
A lease that does not make the lessee responsible for the value of the asset at the end of the lease term (except for excess mileage and abnormal wear and use). Also known as a "walk-away" lease. All VCFSC leases are closed-end.
The most common type of lease in which the residual is set and the lessee has the option to purchase the vehicle at that price when the lease ends. Lessee can simply return the vehicle at lease-end without any risks. GAP insurance is usually included.
A lease in which the lessor absorbs the loss if at lease end the vehicle is worth less than the residual value. Should the vehicle be worth more, the lessee has the option to purchase the vehicle at the purchase option price and retain any potential profit. All Chrysler Financial leases are closed-end leases with purchase options.
A lease in which the lessee is not responsible for any difference between the actual and estimated residual value at the time of lease maturity. The lesseeâ€(tm)s only extra obligations under a closed-end lease might be mileage or wear and tear exceeding the lease contract provisions.
A lease that allows the lessee to return the vehicle at the end of the lease term with no further financial obligation, assuming that the lessee has complied with all of the terms of the lease. The lessee may be responsible for a disposition fee, if it is part of the lease agreement. There may be additional charges according to the terms of the lease for any excess mileage or excess wear. The lessee is not responsible for any difference between the residual value, as stated in the lease, and the actual value of the vehicle at the end of the lease.
Auto lease that allows you to walk away from the lease at the end of the lease term without paying for any difference between the anticipated residual value and the actual value of the car.
A lease that doesn't require the consumer to buy the vehicle at lease end or pay any difference between the residual value and market value. Closed-end leases, which are the most common type, usually allow lessees to buy the car if they so desire. To do so, the lessee may have to pay off the residual value, the market value or whichever is higher when the lease ends, depending on the contract. Though the buying price in the lease contract is supposed to be fixed, in some cases the leasing company will negotiate a lower price.
Lease with monthly payments over a given period of time with no charge when the lease expires. At the expiration of the lease, the lessor sells the leased property for a gain or a loss.