Closed-End Lease

A closed-end lease is a common type of consumer vehicle lease where the lessee can return the vehicle at lease end and walk away after paying any applicable end-of-lease fees (for extra mileage or wear). The leasing company, not the customer, assumes the risk of the vehicle’s residual value. Most personal car leases in Canada are closed-end [oai_citation:0‡investopedia.com](https://www.investopedia.com/terms/c/closed-endlease.asp#:~:text=Leasing%20www.investopedia.com%20%20An%20open,lessor%20takes%20on%20the) [oai_citation:1‡omvic.ca](https://www.omvic.ca/buying/shopping-tips/leasing/#:~:text=Leasing%20,Residual%20value%20is%20the), meaning the dealership’s customer isn’t responsible for the difference if the vehicle’s actual value is less than the residual at lease end (barring excess wear or mileage charges).