How Leasing Works

You (the lessee) sign a lease agreement with us (the lessor) in which you agree to pay a specified monthly fee for a specified period of time in exchange for the use of a vehicle of your choice. Monthly fee is based primarily on the vehicle's anticipated depreciation over the term of the lease (24 to 60 months) plus interest and service charges.

There are two basic lease programs available: Closed End (Walk Away lease) and Open End (finance lease).

In a Closed End lease, you the lessee are not responsible for any depreciation risk at the end of the lease. In this lease program you do have the opportunity to purchase the vehicle at the end of the lease for the fair market value, but there is no obligation to do so. You are only responsible for any abnormal wear and/or excessive mileage on the vehicle, if any.

In an Open End Lease a predetermined price is set at the start of the lease for which you may buy the car at lease end. But if you decide not to buy the car at lease end you are responsible for the residual value when your lease period is over. If the cr is worth more than the anticipated residual value, you receive the difference.

When you buy, you have to put 20-30% down to make the payments affordable. When you lease you only need the first month's payment and a refundable security deposit which is usually equal to payment and license fee.

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