Closed-End Lease (Net Lease)

In a closed-end lease, the customer makes a specified number of payments and returns the vehicle at the end of the term. There are mileage limits and limits on ‘excess wear and tear’ at the end of the lease, but no ‘estimated residual value’ in the lease agreement. As long as the vehicle is within those limits, the customer is not responsible for the residual value. Leases can be written with higher mileage limits to protect against excess mileage charges at the end of the lease.