If you’re considering leasing a new car, it’s important to know that not all leases are created equal. As such, when you start the process, be sure to familiarize yourself with the main differences between an open-end lease and a closed-end lease.
When you think of a lease, a closed-end lease is probably what comes to mind. With this type, you’ll agree to the length of the lease term, a fixed monthly payment, and limitations on certain things, like mileage and customization. The benefit of a closed-end lease is that, as long as you abide by the rules, the vehicle’s estimated depreciation is rolled into your monthly bill, and you won’t need to assume the depreciation risk at the end of the lease. So, if you need a car to ferry your family around Huntington Beach for a few years, a closed-end lease is probably your best bet.
Open-end leases are slightly less common but are an excellent choice depending on your circumstances. In essence, an open-end lease is one in which you agree to take on the depreciation risk in exchange for the freedom to drive much farther and worry less about wear and tear. If you plan to drive the borrowed car for a short period of time, this may be the way to go.
To speak with an expert about which type of lease best suits your family’s needs, give us a call at DeLillo Chevrolet, located right here in Huntington Beach, California.