One interesting aspect of leasing is that it is in effect an insurance policy for automobiles. The majority of the people in the United States trade-in or sell their automobile sometime before the end of its useful life. This is especially true of business use vehicles, although the following analysis applies to any vehicle. When calculating the total cost of ownership of a vehicle, the resale value is an important factor. When you purchase a vehicle, while you can make an educated guess, you do not know this value in advance. However, with a closed-end lease, you know exactly what this value is. Read more.