I don’t understand why there is an interest rate quoted on car leases. How is leasing something different than renting something? If I get an apartment I just pay rent. So how does interest come into play.
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When you rent an apartment you aren’t given a predetermined price at which you can buy the apartment when your lease is up.
The interest (or money factor) is essentially for this, a rate covering the expected depreciation of the car’s value while in your possession.
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