Leasing a car is getting a car on rent for quite a while, paying a few portions each month as long as you keep it. At the point when the lease is over, you need to bring it back. The lease amount is calculated on the value of the car at the time of the lease, the estimated value of the car at the end of the lease, mileage allowance and length of the lease. Generally, two types of lease are here open-end and closed-end.
Open-end vs. closed-end leases
Closed-end means you agreed about the future measure of car and you are prepared to pay it, regardless of if the amount at that time is lower than decided earlier.
In open-end future value is not mentioned possibly expected value is mentioned if the amount is less you will get money if it is more than you have to pay.
There are different types of lease fees that you may have to pay.
Acquisition fee:
It is the fees that the company costs for arranging a lease.
Security deposit:
It is an initial payment in the lease, roughly equal to the one-month lease payment.
Early termination fee:
This fee is charged when you want to terminate the lease before time.
Disposition fees:
It covers costs for cleaning and selling the car at the end of the lease.