Open End Leasing Programs
This program combines the benefits of leasing with the flexibility of ownership – without the up front capital investment. There are no wear and tear clauses since vehicle condition is reflected in the resale value. There are no early termination penalties. You can amortize the cost of the vehicle over terms you choose. Monthly billings may be subdivided by separate division, profit centers and the like. You participate in the resale of the vehicle whether there is a gain or a loss. If the vehicle sells for more than the residual, you keep the gain.
· Flexible financing terms
· Unlimited mileage
· No early termination penalties
· No wear and tear clauses
· At the end of the lease you own the car
Closed End Leasing Programs
This program protects you from an unfavorable used car market. The responsibility for resale rests with Interstate. You have no other obligation than abnormal damage or mileage in excess of the agreed upon figure. Also, as an operating lease, you can use off-balance sheet accounting which simplifies accounting procedures and enhances financial ratios. Monthly billings may be subdivided by separate division, profit centers and the like. At the end of the lease you can return the car to the dealer delivering the vehicle.
· Specific financing terms
· Specific mileage terms
· Full maintenance can be included in monthly payment
· At the end of the lease you just walk away.