Open-end lease

Open-end lease

A lease agreement that provides for an additional payment at the expiration of the lease to adjust for any change in the value of the property.
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Hines says many business owners get caught off guard thinking they've signed a close-end lease when in fact, it's an open-end lease.
With an open-end lease, always double-check with the dealer whether you're responsible for the residual, regardless of the state of the vehicle.
is $15,000 by assumption for both the closed-end lease with a guaranteed buy back and for the open-end lease.
An open-end lease usually is slightly less costly than the closed-end lease.
The open-end lease does not guarantee an end-of-lease value, which means that monthly payments are lower.
The open-end lease contains an option that allows the lessee to purchase the leased asset at the maturity of the lease.
Under an open-end lease structure, residual risk at lease termination is taken by the lessee.
The monthly payments on open-end leases are much higher and the total cost of the lease is unknown until the end of the lease agreement.
commercial auto fleet lessors, residual risk remains mitigated by the fact that portfolios are predominantly open-end leases, which subjects the lessee to any residual value loss or gain.
The overall portfolio is almost entirely comprised of open-end leases, which protects Wheels from residual value risk upon vehicle disposition.
31, 2005) and relatively low residual risk as 99% of the portfolio consists of open-end leases, which helps minimize losses related to declining vehicle resale values.
The fleet-leasing business also has a low-risk profile as approximately 97% of the vehicles leased are under open-end leases.