ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Car Leasing and Renting

What is a "closed-end" car lease?

Under the closed-end lease contract, sometimes called a walkaway lease, the car's value when you return it does not matter unless you have put extreme wear on the car. You return the car at the end of the term and walk away. Payments are higher than under an open-end lease because the lessor (the person or company leasing the car to you) takes the risk on the car's future worth.