When customers select Early Termination, they simply pay the balance owed, which is calculated using a simple interest formula.
Your customers have four options at Early Termination:
- Pay the residual and own the car
- Sell the car, pay the residual, and keep any difference
- Trade in the car to you. You pay the residual, and the customer keeps any difference
- Refinance the residual through a new lease, without a large cash outlay, and continue to own the car