The two types of car leasing agreements that exist are open and closed. It is good to learn a bit about how car leasing works and the different types there are in order to make the best decision.

For consumers the best and most commonly taken agreement is the close-ended deal. Agreeing to these car leasing deals you are able to return the car when the lease contract runs out. The great thing about these agreements is there are no additional costs with the exception of damages and exceeding your allotted mileage.

The agreement is made that determines a maximum number of miles that you can drive each year with the car you have leased. If you exceed this pre-determined mileage you will need to pay extra. The agreement commonly uses 10,000 miles as the limit for a lease hire car.

When your lease comes to an end the current value of the car will be determined. The car being worth less than predicted is uncommon but definitely a bonus for you. Otherwise you will have the option to buy the car or hold onto it and try and sell it for a profit. This should also include any car accessories as well, which is a good little addition to any deal.

Open-ended agreements are geared more towards businesses. The agreement cost a lot more but is more flexible and commonly has a greater mileage limit.

However the cost is the down side to these contract and as a leaser you would be required to pay any additional costs between the market and residual value of the car at the end of the lease period.

In general lease cars that function on a close-ended deal will provide the best return for the price you pay. If you need a more flexible arrangement then you may want to look into an open leasing agreement but beware of any additional costs that could be incurred.

Now that you know the difference between an open and closed agreement you should have a much better idea of what you want when it comes to car leasing.