In a closed-end lease, you have the right to return the vehicle to the lessor at scheduled termination with no responsibility for any amount by which the actual depreciation has exceeded the expected depreciation (but you would have to pay any excess mileage and excessive wear-and-tear charges). If the actual depreciation has exceeded the expected depreciation, the vehicle will be worth less than the lease residual value. For any lease residual value, the possibility exists that the vehicle will be worth less than that residual value at full term; the higher the residual value compared with a standard residual value guidebook's prediction, the greater this probability. Example