Top Signs You Should Choose A Closed-End Lease

by Grace Motley

You might know that you want to lease a car, but you might not be sure of the type of car lease that you should look into. In fact, if you don't have a lot of experience with vehicle leasing, you might not even realize that there are different types of car leases. Many individuals opt for open-ended car leases. However, closed-end car leases can sometimes be a good choice, such as if the following statements are true for you.

You're Hoping for a More Affordable Lease Rate

Leasing is often pretty affordable, at least in comparison to purchasing a car. However, lease rates can vary based on many different things, including the car that you choose to lease and the specific rates and terms of your lease agreement. In many cases, closed-end leases have more favorable terms for those who are leasing the car. If you want to be able to lease a nice car without paying more than necessary, you might want to check into the cost of a closed-end lease.

You Know You Don't Want to Keep the Car

One of the best things about leasing a car is the fact that you can return it in a few years and then lease a brand new car again. However, some people do end up getting attached to the vehicles that they lease, and they find that they actually want to buy the vehicle if possible. However, with a closed-end lease, you often don't have the same option to purchase the leased vehicle. Therefore, you should think about whether or not you might want to purchase the car that you are leasing when your lease term is over. If you feel confident that you aren't going to want to purchase the car, then a closed-end lease might just be fine for you.

You're Willing to Follow Stricter Terms

In some cases, closed-end leases have terms that are a bit stricter than what you will find in a regular open-end lease. Some people worry about things like mileage restrictions, and you should think about whether or not these restrictions and terms will have an impact on you during the rental period. If you don't really mind these stricter terms — such as if you know that you won't be driving the vehicle a lot and therefore aren't concerned about going over on your mileage — then a closed-end lease might not be a problem for you at all.

To learn more about closed-end car leasing, contact a local auto dealer.