What Is It Like To Lease A Car?
Your lease experience will depend upon the type of lease you choose. There are two types of leases: Open-end leases and closed-end leases.Â
Closed leases are more popular and come with slightly higher monthly payments - these are the leases that let you walk away free from your car or truck when the lease ends. Drivers will have to pay for excess mileage and wear-and-tear fees but all other depreciation costs are losses of the leasing company, not you. This type of lease is beneficial for those who don't mind mileage limitations and don't foresee major wear-and-tear damages; for example those who foresee children spilling food and drink everywhere.
Open-end lease contracts require drivers to purchase their leased vehicle at the end of their contract period. This type of lease usually comes with slightly cheaper monthly payments, but drivers will have to pay the residual value of the vehicle when the lease is up; no mileage or wear-and-tear fees are assessed with this type of lease.
Compared to financing, closed-end and open-end leases usually come with cheaper monthly payments. This means higher-end models are accessible to a wider range of incomes. The reason why leasing is cheaper is because when you finance a car you're paying the purchase price plus interest over a period of time. When you lease, you're only making payments based on the difference between a projected residual value and the purchase price of the car.
If you think leasing might be something you're interested in, contact Walker Chevrolet today.
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