In general, if it happens that the vehicle is driven more than it was estimated that it would be driven, then it can result in an increased cost for the lessee.
Hence, if it happens a situation like this, then the lessee will pay only for the extra mileage.
On the other hand, the closed lease is gaining more popular amongst consumers. It is so because at the end of the lease term, the lessee of the car can enjoy his/hers buying options.
That is to say, the lessee can have the chance to purchase the vehicle at the residual value price or to return it to the leasing company by paying penalties at the same time (if there are excessive mileages and damages).
Residual Value of Leased Vehicles
Residual value is a term that is often used in the car leasing industry.
Moreover, the residual value is in fact the actual value of the car at the end of the lease.
So, to make things clear, a residual value of the leased commercial car is the actual amount that a business expects to sell an asset for at the end of its life.
