Expats beware: Not all car leases are created equal
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 a...