Hi guys, in my recent search for an exotic… I had a broker suggest an open ended lease. I know nothing about this, as i stick to the traditional way… Can you guys assist with some knowledge? Downsides vs upsides?
Open-ended means you take all the downside risk on the RV, which defeats the entire purpose of leasing a car and is therefore a terrible idea.
Case closed, pun intended.
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Does anyone even purposely get into an open-ended lease? Terrible idea.
Perhaps on an exotic car that you expect to hold value… maybe … but so much down side for not a lot of upside. The only real upside is that if the car is worth more than stated in the lease agreement at the end, you could get a refund (v trying to sell the car outright instead). But you run a huge risk of the car being worth far less than the agreement states that you then have to pay the difference of.
thanks guys. I figured it was a bad idea… I did read 1 or 2 stories. Traditional seems like the way to go. open ended just seems to be an avenue to try and get you into an exotic.
Having the fixed, traditional lease, gives you the cost, the floor. You know if you can afford it or not. Having an open-ended lease is like writing naked call options, unlimited downside risk, never worth it even with F* you money. Might as well hit the casino.