Generally, leases with a fixed term where the lessor assumes certain risks of ownership, notably depreciation and funding, plus takes responsibility for providing certain defined levels of administration. Other elements sometimes provided for are licensing or registration expenses, maintenance, tire replacements, and certain forms of insurance.
Closed end leases take slightly different forms in various countries, depending on taxation and accounting regulations, plus custom and normal trade practices within the country. Most closed end leases have clauses which provide for price adjustments for miles or kilometers, when actual amounts accumulated on a vehicle differ from the amount allowed in the lease contract, and clauses which make the lessee responsible for maintaining the leased vehicle to certain minimum standards of good operating condition and appearance.