Expatriates moving to the United States encounter many challenges when
leasing a vehicle due to a lack of a U.S. credit history. There are two types
of automobile leases that exist in the United States, open-end and closed-end
leases, for both new and used vehicles. Expats need to protect themselves and
learn the difference before they sign to ensure they are getting a good deal.
Closed-End Leasing – Often called "walk-away leases," are based on the
number of miles a customer will typically drive in a year (12,000), that it
will be driven in normal driving conditions and the residual value of the
vehicle is known upfront. For Expats this is a good option as it is a no-risk
lease agreement with all costs known prior to going into the lease. Choosing a
manufacturer direct leasing program protects the expat with a higher residual
value, low monthly payments and low interest rates not found anywhere else. At
the end of the leasing term, the customer simply returns the vehicle and they
are not responsible for anything other than possible excessive damage or
additional mileage charges.
Open-End Leasing – Typically used in business leases, the lessee takes all
of the financial risks. The monthly payments on open-end leases are much higher
and the total cost of the lease is unknown until the end of the lease
agreement. Therefore if an expat were to enter into this type of lease they
would be responsible for paying the difference between the estimated lease-end
value and the market value of their vehicle at the end of the lease. Expats
beware as open-end leases are often promoted as a good option since customers
are not locked into a long-term agreement. However, expats often end up paying
more for this flexibility as the higher monthly payments usually exceed those
of closed-end leases and the expat would also be responsible for the difference
in the residual value and market price, resulting in one large lump-sum payment
due upon return of the vehicle!
International AutoSource has been assisting expats without a U.S. credit
history lease vehicles for decades. Through manufacturer direct leasing
programs, expats have access to safe, low rate, close-end lease programs. To
read more about International AutoSource, please visit http://www.intlauto.com.
CONTACT: James Krulder
SOURCE: International AutoSource