The closed-end lease provides a predetermined fixed vehicle cost based upon anticipated usage. You pay only for that portion of the vehicle's useful life. Your monthly lease payment is fixed for the term of the lease, providing budgetary, inflation-proof transportation.
At the end of the lease the vehicle is simply returned to us, normal
wear and tear is expected. You are protected against unfavorable
fluctuations in the used car market. You have no responsibility or
obligation to support the vehicle's resale value. We do, however, pass
along an option to purchase the vehicle.
Since we are assuming the risk of resale, often times we suggest for your consideration, options or model enhancements whose costs are recoverable at resale and therefore will have little or no effect on the lease cost. Providing more car for the money is just part of our role in helping you reach your goal of increasing company morale.
Allstate Leasing provides flexibility for vehicle replacement prior to lease expiration without penalty. This feature can accommodate changes in driving habits or in the client's needs by simply allowing the lease to be converted to a shorter term.
In most cases, a closed-end lease meets the criteria of an operating lease as required by generally accepted accounting principles, neither the depreciating asset nor the lease liability need be recorded on your financial statements. This off-balance sheet accounting simplifies your tax and book record keeping while providing the maximum tax benefit and enhancing your financial statement presentation.