The most common type of car lease, also known as a closed-end 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.

The most common type of vehicle lease where the lessee may return the vehicle at the end of the lease term, pay any end-of-lease costs, and the lease agreement is finished.This type of lease is also known as a closed-end lease. With this type of lease the lender assumes the risk of predicting the value of the vehicle (residual value) at the end of the lease term. Closed-end lease payments are somewhat higher than open-end lease payments.