LEASING SERVICES

Closed End Lease

Also known as a "Walk Away Lease," the closed end lease offers particular advantages to lessees who need to minimize risk and prefer a defined termination point of their lease.

Basically at the end of the lease agreement, you walk away.

Simply return the vehicle within the terms of the agreement with regards to mileage and wear-and-tear.

Generally, a closed end lease is a good option for clients who:

• Have low, predictable mileage habits.
• Will not terminate prior to lease term.

With a Closed End Lease:

• Depreciation risk is assumed by the lessor. (Union Leasing)
• The lessee pays for abnormal wear-and-tear.
• The lessee pays for any excess mileage, but terms are negotiable.
• The lessee has less flexibility in terminating prior to the agreed-upon lease term.

A Comparison: CLOSED END vs. OPEN END

Open End Lease

Generally appropriate for:

• Corporate fleets of more than 25 vehicles

• Lessee assumes more risk for depreciation, but generally pays less per month and enjoys more flexibility.

Advantages:

• Frees up capital for more vital capital expenditures.
• More flexibility if your needs change.
• Takes advantage of a positive reseller market.

Closed End Lease

Generally appropriate for:

• Smaller fleets and government customers
• Lessor assumes more risk for depreciation, but charges more on a monthly basis to assume risk.

Advantages:

• Minimizes risk
• "Walk-away” convenience
• Depreciation risk is assumed by Union Leasing