The open end lease program combines the cost benefits of leasing with the flexibility and control of ownership. Under this scenario, you are afforded no restriction on the number of miles that may be driven, nor are you held responsible for any excess wear & tear. As an added bonus, the open end lease gives you the flexibility to terminate the lease prior to the scheduled expiration of the lease term, without penalty.
However, in return for the increased flexibility and control, you take the risk that the vehicle will be worth at least as much as the unamortized balance in the pricing section of this proposal at lease expiration. If the actual amount received (net sale proceeds) is greater than the unamortized balance, you will receive the difference. Should the net proceeds be less than the unamortized balance, you would owe the difference. Of course, you always have the option to purchase the vehicle at the end of the lease term for the same unamortized balance. That’s it; there are no excess mileage or wear & tear penalties with this type of transaction.
Please keep in mind that regardless of whether you select an open or closed end lease program, a three year old vehicle with “X” number of miles on it, is worth only so much at the time of resale. Therefore, your pricing under either plan should reflect your anticipated usage