Walk-Away Lease
Candlefocus EditorWalk-Away leases are attractive to businesses and individuals who are looking to get the benefit of using a product without the long-term commitment. This type of financing provides a way for customers to upgrade to a newer product or model when the lease ends, with no penalties for doing so.
With a walk-away lease, the customer is required to make regular payments throughout the lease period. These payments are typically lower than payments of traditional financing. This is because the payments are calculated based on the estimated residual value of the product once the lease agreement ends.
The customer will not be subject to any additional fees or penalties when they end the lease. The customer may need to pay a small fee if they are returning the product either early or late from the date that was set within the agreement. The customer also has the option of purchasing the product for the residual value when the lease ends.
A walk-away lease provides a balance of risk-free convenience and cost savings with the ability to upgrade to a more recent product at the end of the agreement. As a result, this type of financing can be attractive to low income individuals, students and businesses that need the use of a product, but cannot afford a traditional down payment and interest payments. For businesses, walk-away leases can be a great way to save on overhead expenses and gain access to more capital.