Open-End Lease

An open-end lease, often used for commercial or fleet vehicles, places the residual value risk on the lessee. At the end of an open-end lease, the customer may have to cover any shortfall if the vehicle’s market value is lower than the predetermined residual (or they benefit if it’s higher). This lease type offers more flexibility (often no strict mileage limits) but more financial uncertainty for the customer. In Canada, dealerships typically offer open-end leases to business clients or for commercial leasing needs [oai_citation:2‡blog.fossnational.com](https://blog.fossnational.com/open-end-vs-close-end#:~:text=Open%20End%20vs,advantages%20of%20business%20vehicle%20leasing).