The monthly payments on a 36-month lease on a car will often be smaller than the monthly payments on a 36-month loan to purchase the car.

Question

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This is because a lease only requires the lessee (person leasing the car) to pay for the depreciation of the car over the lease term, while a purchase loan requires the payer to make payments on the full value of the car plus interest.

The Monthly Payments on a 36-Month Lease on a Car