You can do the math and convert it as a loan equivalent. If you get a loan for a car, you're paying the value of the vehicle + an extra fee for the convenience

You can do the math and convert it as a loan equivalent. If you get a loan for a car, you're paying the value of the vehicle + an extra fee for the convenience of not having the full amount upfront to purchase it. When you lease a car, you're doing the exact same thing. The only difference is that the car company is not legally obligated to disclose your effective interest rate. You can calculate it yourself here: https://www.calculator.net/lease-calculator.html?ctype=fixpayment&cloanamount=20000&cresidualvalue=8000&cloantermy=3&cloantermm=0&cinterestrate=6&cmonthlypay=400&x=111&y=20 https://www.calculator.net/lease-calculator.html?ctype=fixpa... A $20,000 car leased over three years for $400 a month that depreciates to $10,000 at the end of the term has an effective interest rate of 9.539%