How does purchasing a leased vehicle in a closed-end lease differ from doing so in an open-end lease?

The majority of these purchase rates rely on the residual value, or the value the vehicle holds at the end of the lease in its current used condition. These are closed-end leases, and require the customer to pay the fixed and nonnegotiable residual amount, regardless of actual market price. Open-end leases operate differently, as actual market value helps to determine the purchase price the dealer will ask for.

As a customer, you will be responsible for any difference between the residual and actual value when you purchase the vehicle outright. More.

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