The financial plan like renting where you pay a sum of money each month in return for the use of a vehicle instead of buying it outright. Open-end leases allow you to pay an additional amount at the end of the term so that you can own the vehicle. Sometimes this is called the buy-back option. Closed-end leases state that at the end of the term the ownership and possession of the vehicle must revert back to the leasing agency. Leasing used to be the domain of businesses; but because of the high cost of vehicles, leasing is now an option for the average consumer.

Dictionary of automotive terms. 2015.

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