auto

What is a walk-away lease?

 

What is a walk-away lease?

The Bankrate.com financial term of the day is: "Walk-Away Lease," or "Closed-End Lease."

With a walk-away lease, you can -- as the name implies -- simply turn in the keys and walk away from the vehicle when the lease is up. You don't have to worry about what happens to the car next. All of that risk is borne by the leasing company, which predicted that the vehicle would still have a certain amount of value and could be sold when you were done with it.

A walk-away lease is also known as a closed-end lease. In this most common type of car lease, there are no loose ends for the consumer who leased the car.

To find the best new cars and the best new car financing, visit the Auto section at Bankrate.com.
 

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