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, 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).