The lessee pays the lessor a monthly fee for the use of the vehicle, which is based on the vehicle&#x27;s depreciation value during the lease term. At the end of the lease term, the lessee may choose to purchase the vehicle at its residual value or return the vehicle to the lessor. Vehicle leasing is a popular option for people who want to drive a new car every few years without the financial commitment of purchasing a vehicle outright. It is also commonly used by businesses that need to maintain a fleet of vehicles for their employees.There are several types of vehicle leases, including:<ul><li>Close-end lease: This is the most common type of lease where the lessee pays a fixed monthly payment for a specific period, typically two to four years. At the end of the lease term, the lessee returns the vehicle to the lessor and is not responsible for the vehicle&#x27;s value at that point.</li><li>Open-end lease: This type of lease is typically used for commercial vehicles. At the end of the lease term, the lessee is responsible for the vehicle&#x27;s residual value, which is the estimated value of the vehicle at the end of the lease term.</li><li>Sublease: This type of lease is when the lessee leases the vehicle to someone else, usually for a shorter period than the original lease term.</li><li>Single payment lease: In this type of lease, the lessee pays the entire lease amount upfront instead of making monthly payments. This is often used by people who have the cash to make a lump sum payment.</li><li>Novated lease: This type of lease is offered by some employers as part of a salary package. The employer leases the vehicle on behalf of the employee, and the employee makes the lease payments from their pre-tax income.</li></ul>It&#x27;s important to note that the terms and conditions of vehicle leases can vary, so it&#x27;s essential to carefully read and understand the lease agreement before signing.

Vehicle leasing is a form of renting a vehicle for a specific period of time, typically ranging from one to five years.

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