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The effective interest rate is the difference in the actual depreciation of the vehicle and what your buy out price is at the end of the lease. The dealer has t
by mmcconnell1618 7y ago
The effective interest rate is the difference in the actual depreciation of the vehicle and what your buy out price is at the end of the lease. The dealer has the ability to set the price at the end so they can manipulate how much over true depreciation you're spending.