3 ms·

I have doubts about depreciation playing any significant role here (Edit: in profitability of lease vs buy.) No free lunches - who covers the depreciation when

• tatsuke95 14y ago
  You do. That's what you are paying for in a lease, the depreciation that occurs over the term of the lease, plus interest and whatever other spread the finance company/manufacturer/dealership takes. They sell the car at the lease end for the value of the car less the depreciation you "used". Lease/buy in an efficient market should be equally profitable. Most of the lease benefits are from taxes.