At the end of your car lease period, you intend to turn in the car, and you will not pay extra at that time based on the residual value of the car. You have a(n) _____ lease.
A) residual
B) open-end
C) purchase option
D) closed-end
E) money factor

Question

Quizplus · Accepted Answer

Closed-end leases, also known as "walk-away" leases, allow the lessee to return the vehicle at lease-end and walk away without any further obligations or fees, provided that the vehicle is within certain mileage and wear-and-tear guidelines. This type of lease is the most common for personal use. Residual, open-end, and purchase option leases all require extra fees or decisions at lease-end. Money factor is a term used to describe the interest rate in a lease agreement.

At the End of Your Car Lease Period, You Intend