When renting a car, individuals must be familiar with different types of leases are available. Leases of consumers are mainly into two categories, namely, the open end and closed. There is a substantial difference between these two categories, this difference must be understood before signing the contract lease. Under federal regulations, is essential to mention the type of income from all leases.

Open end lease contracts used for the rental of commercial businesses. The tenant, rather than the leasing company is responsible for the financial risks in this type of lease. However, not considered too much of a problem that costs can be charged as annual mileage a commercial lease is usually much more than a non-commercial lease. The tenan that is  using a  private car lease   also must pay the amount of the difference between the actual market value and appraised value once the rental period is over. This difference can reach a considerable amount of money if the market value of the car has been reduced significantly or has been saturated. A lease open-end is considered much less risky, because the interest rate is much lower than a closed end, not lease. However, the monthly payment on a lease variable capital is higher than that of a closed end.

The closed-type leases also known as "Walk Away" leases are contracts most common lease current consumption. A closed-end lease allows the tenant to return the vehicle after the rental period ends without any kind of added responsibility of caring for payment with the exception of extreme damage to the car or the cost of extra mileage. The number of miles driven by the tenant is usually expected in closed end leases, so the value at the end of the rental period is so predictable if the car is driving in abusive conditions or excessively difficult.

Even if the lease, the leasing company estimates the residual value of vehicle and then prepares the contract. However, it is essential you read the contract before signing, to avoid complications at the end of the lease period.