Answer
With a closed-end lease, you can return the car at the end of the lease and pay only for excessive damage to the car and excess mileage. It is not your responsibility if the car's value depreciates more than expected.
With an open-end lease, if the appraised value at the end of the contract is less than the residual value stated in the contract, you must pay the difference to the leasing company.
Work Step by Step
With a closed-end lease, you can return the car at the end of the lease and pay only for excessive damage to the car and excess mileage. It is not your responsibility if the car's value depreciates more than expected. You also have the option to purchase the car for the residual price stated in the contract.
With an open-end lease, if the appraised value at the end of the contract is less than the residual value stated in the contract, you must pay the difference to the leasing company. You also have the option to purchase the car for the residual price stated in the contract.
