A fixed monthly lease fee and a final balloon payment will be set and agreed at the outset. The balloon payment is based on the vehicle’s estimated future value, or residual value.
When the end of the term arrives, the final balloon payment will be made and ownership of the car will transfer. Or it can be requested that we sell the vehicle on to cover the outstanding value. If the vehicle’s sale exceeds the final balloon payment, 98% of the profits from the sale will be received by the lease holder. Conversely, if the sale value is less than the outstanding amount to pay, you would have to pay the difference.
This option often works out best with luxury cars which tend to retain their residual value extremely well. As the business will be taking on the vehicle as an asset, it will want it to retain as much of its original value as possible in order to benefit.