# Walk away

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## Walk away

To take and maintain a position in a stock after going to the floor to consummate a trade. Antithesis of trade me out, buy them back.

## Walk Away

Describing a lease where the lessee must return the asset at the end of the lease's term. A walk away lease gives a great deal of flexibility to the lessee because the costs are all known in advance; likewise, the lessee does not need to predict the fair market value of the asset because he/she will not possess it. The lessor carries all risk. A walk away lease is most common with car loans. It is also called a closed-end lease.
References in periodicals archive ?
Under this approach, the closed-end lease with a fair market buy back has only certain cash flows, while the other alternatives have both certain and uncertain cash flows.
The expected profit from exercising the option to purchase under the closed-end lease with a guaranteed buy back is equal to C.
Note, however, that the expected value of the uncertain cash outflow from the closed-end lease with a guaranteed buy back is [Mathematical Expression Omitted], which is less than either [P.
This paper shows that previous applications of these approaches have ignored the value of the consumer's right under some closed-end leases to purchase the leased auto at a predetermined price and as a consequence have overstated the net costs of these leases.
However, adjusting for uncertain cash inflows would make these alternatives less attractive vis-a-vis both closed-end leases, and the guaranteed buy back lease would become less attractive relative to the fair market value lease.
When the leased car is assumed to be purchased at the end of the lease, all of the cash flows from the purchase and open-end lease alternatives are certain, while the lease purchase option prices are uncertain for the closed-end leases.
Closed-end leases require a fixed number of payments for a specified number of months, and at the end of this payment period the lessee simply returns the leased asset to the lessor.
However, expats often end up paying more for this flexibility as the higher monthly payments usually exceed those of closed-end leases and the expat would also be responsible for the difference in the residual value and market price, resulting in one large lump-sum payment due upon return of the vehicle
Sparta provides a full line of financing solutions including indirect retail installment sales contracts and direct closed-end leases, as well as related services including GAP coverage and vehicle service contracts.
The most common industry practice is to offer closed-end leases, many of which guarantee the purchase price at the end of the contract.

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