Definitions for "Open-end lease"
A lease in which the lessor is not responsible for the cost of a vehicle when the lease is done. Under this type of lease the lessee is responsible for the difference between the current actual market value and the residual value. Also known as a ""finance"" lease.
A lease agreement that provides for an additional payment after the property is returned to the lessor to adjust for any change in the value of the property.
(Conditional Sale) - A basic lease agreement in which the Lessee assumes financial responsibility for the difference between depreciated value and the proceeds of the vehicle sale at lease end. A conditional sale takes place when the lease end value is place extremely low (sometimes down to a $1.00) and does not conform to the regulations set forth by IRS.